Author: therawinformant

If you’re looking for ways to beat low interest rates, then I think the share market is the answer.

This is because there are a large number of quality companies on the ASX sharing their profits with investors in the form of dividends.

Three ASX dividend shares I would buy next week are listed below. Here’s why I would invest in them:

BWP Trust (ASX: BWP)

The first dividend share to look at is BWP Trust. It is a real estate investment trust which has close ties with Wesfarmers Ltd (ASX: WES). As well as having the majority of its warehouses leased to Wesfarmers’ Bunnings Warehouse business, the conglomerate is a major BWP shareholder. I see this is a positive and feel it means Wesfarmers is unlikely to do anything that would have a negative impact on BWP’s performance and ultimately its investment. All in all, I believe it leaves the company well-placed to deliver consistent rental income and distribution growth for many years to come. Based on the current BWP share price, I estimate that it offers investors a forward 4.6% yield.

Fortescue Metals Group Limited (ASX: FMG)

Another dividend share to consider buying is Fortescue Metals. If you’re not averse to investing in the resources sector, then I think it could be a top option for income investors. This is due to the sky high iron ore price and the strong free cash flow it is underpinning. Given the strength of its balance sheet and its favourable dividend policy, I expect the majority of this cash to be returned to shareholders through dividends. Based on the current Fortescue share price, I estimate that it offers a forward fully franked dividend of at least ~6%.

Lendlease Group (ASX: LLC)

A final ASX dividend share to consider buying is Lendlease. I think the international property and infrastructure company could be a great option for investors. With the worst now behind the company and management recently announcing a new strategy, I believe it is well-positioned for growth over the 2020s. Especially given its burgeoning global development pipeline, which includes a huge project with Google. Currently, I estimate that the company will pay a 33 cents per share dividend in FY 2021 before increasing it to 50 cents per share in FY 2022. Based on the current Lendlease share price, this equates to 2.7% and 4.1% dividend yields, respectively.

More reading

• Why retirees should add these solid ASX dividend shares to their portfolios
• A definitive guide to September ASX share trends
• 2 ASX shares I would buy again and one I regret
• Why the Rio Tinto share price is outperforming its peers
• 2 reliable and high quality ASX dividend shares to buy today

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.

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Last week was a disappointing one for the S&P/ASX 200 Index (ASX: XJO). After a series of ups and downs, the benchmark index ultimately dropped 66.1 points or 1.1% to end the week at 5,859.4 points.

Another busy week is expected next week. Here are five things to watch on the ASX 200 over the five days:

ASX 200 futures pointing slightly higher.

According to the latest SPI futures, the ASX 200 is poised to start the week in the black. Current futures contracts are pointing to a small 4 point gain at the open on Monday. This follows a reasonably positive night of trade on Wall Street on Friday which saw the Dow Jones rise 0.5%, the S&P 500 edge slightly higher, and the Nasdaq fall 0.6%.

Sydney Airport traffic update.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be on watch on Friday when it releases its traffic numbers for the month of August. Last month the airport operator revealed that passenger numbers were down 91.8% in July compared to the prior corresponding period. I’m not expecting a major improvement on this in August due to border restrictions.

Tech shares on watch.

September certainly has been a rough month for Australian tech shares. Since the start of the month, the S&P/ASX All Technology Index (ASX: XTX) has lost 9.3% of its value. Heavy declines from the likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) have weighed heavily on the index. Is the tech rout finally over? Judging by the Nasdaq’s 0.6% decline on Friday night, it might not be over just yet. But I’m optimistic it is very close.

Premier Investments results.

Premier Investments Limited (ASX: PMV) hasn’t revealed when exactly it plans to release its full year results, but traditionally it is around this time in September. Investors may want to keep an eye out for an announcement from the Smiggle and Peter Alexander operator late in the week. With the help of Job Keeper, the Premier Retail business is expected to report record full year earnings before interest and tax of between $184.8 million and $185.8 million. All eyes will be on whether the conglomerate uses the government assistance to maintain or even grow its dividend.

Shares going ex-dividend.

Speaking of dividends. Next week another group of shares will be going ex-dividend. On Monday there’s investment platform provider HUB24 Ltd (ASX: HUB) and appliance manufacturer Breville Group Ltd (ASX: BRG). On Tuesday Inghams Group Ltd (ASX: ING) and Service Stream Limited (ASX: SSM) will trade ex-dividend. Then on Wednesday there’s Costa Group Holdings Ltd (ASX: CGC), followed by Seven Group Holdings Ltd (ASX: SVW) on Thursday.

More reading

• Buy these ASX growth shares after the market selloff
• 3 five-star ASX stocks to buy right now
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• The ASX 200 is still stuck in a rut

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 Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Premier Investments Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Hub24 Ltd and Service Stream 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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Are you wanting to add a few growth shares to your portfolio? Well now could be a great time to do it.

A number of popular ASX growth shares have pulled back meaningfully from recent highs. I think this could be a buying opportunity for investors next week.

Two ASX growth shares I would buy are listed below:

Afterpay Ltd (ASX: APT)

The first growth share to consider buying is Afterpay. This payments company’s shares are currently trading 23% lower than their 52-week high. This has been driven by weakness in the tech sector and news that PayPal is entering the buy now pay later market with its Pay in 4 product. In respect to the latter, I’m not overly concerned by this news due to its leadership position and its strong brand. I suspect the smaller players are the ones that will suffer most from PayPal’s entry.

In light of this, I think the weakness in the Afterpay share price is a gift for buy and hold investors. This is because I’m confident Afterpay has the potential to grow materially in the future thanks to the increasing popularity of the payment method, its $5 trillion opportunity in the United States, and its global expansion plans.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to buy and hold is Pushpay. The shares of the donor management and engagement platform provider for the faith sector have fallen over 24% from their 52-week high. I think this has created a buying opportunity for long term-focused investors.

Especially given its very positive growth outlook. After smashing its guidance in FY 2020, the company is on course for more strong growth in FY 2021. Management provided guidance for EBITDAF of between US$48 million and US$52 million. This will be a 91.2% to 107% increase, respectively, year on year.

More reading

• 3 personal finance tips to help strong investing
• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• Why the Afterpay (ASX:APT) and Sezzle (ASX:SZL) share prices are falling again today
• Could these exciting small cap tech shares be the next Afterpay (ASX:APT) and Altium (ASX:ALU)?
• Afterpay (ASX:APT) share price facing new competitive pressure

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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2020 has been a tough year for ASX dividend shares. The coronavirus pandemic has crimped economic growth and triggered recessions across the world.

We saw many Aussie companies slash dividends in the August earnings season as cash flow dried up. However, despite the challenges, I think ASX dividend shares are still king in 2020.

Why investors are selling ASX dividend shares

Finance theory tells us that dividends are ‘sticky’. All that really means is that companies tend to avoid cutting dividends as much as possible.

A dividend increase signals that management is confident about future cash flow. Given the negative signal that a cut sends to the market about future profitability, boards rarely raise dividends without being quite sure of future output.

However, COVID-19 has changed that as we saw companies across the board slash distributions. That means investors who owned ASX dividend shares for income have sold down their holdings in the hunt for growth.

After all, if income is off the table then maybe capital gains are worth a look.

Why companies like Telstra are still king

I still think ASX dividend shares have a place in a diversified portfolio. Take a company like Telstra Corporation Ltd (ASX: TLS) which has paid consistent dividends for years.

Despite challenges from COVID-19 and the NBN, Telstra maintained its full-year dividend at 16 cents per share.

That’s good news for investors in the current times when solid dividends are hard to come by.

I also subscribe to the ‘bird in the hand” theory, that cash in the form of dividends today is preferred to unknown cash from growth tomorrow.

Of course, not all ASX dividend shares are created equal. I think it pays to be strategic about where you’re hunting for dividends in industries and sectors.

ASX gold shares like St Barbara Ltd (ASX: SBM) have performed strongly this year. That means with some smart picks, investors can still have both capital gains and dividends in 2020.

The other sector that has caught my eye is Consumer Staples. I think companies like Bega Cheese Ltd (ASX: BGA) and Coles Group Ltd (ASX: COL) can deliver strong earnings and pay tasty dividends in the next 12 to 18 months.

Foolish takeaway

The dividend vs growth debate is as old as investing itself. However, I think when times are tough it can be good to have some reliable dividend shares in your portfolio.

More reading

• Where to invest your JB Hi-Fi (ASX:JBH) dividends today
• Is the Telstra (ASX:TLS) dividend sustainable? This analysts thinks it is
• Why I would buy Coles (ASX:COL) and this ASX dividend share
• ASX 200 rises 0.5%, gold miners glitter
• Why I would buy Telstra (ASX:TLS) and this outstanding ASX 50 share

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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The prospect of a second stock market crash has remained relatively high over recent months. Even though investor optimism has improved after the March 2020 lows, a weak global economic outlook may cause sentiment to return to lower levels in the coming months.

While a second sharp decline for stock prices in 2020 would cause paper losses for many investors, it could present a buying opportunity. Through following Warren Buffett’s value investing strategy, you could benefit from it.

A second stock market crash

The prospects for stocks continue to be very uncertain even after the recent rebound from the market crash. For example, coronavirus cases continue to rise on a global basis at a high rate. This could mean that further lockdown measures are required across major economies, which would further disrupt the operating environments for many companies.

Furthermore, rising unemployment and weaker consumer confidence are likely to be experienced in the coming months. Changing business models in response to evolving customer trends may also mean a period of uncertainty that prompts businesses, consumers and investors to become more cautious regarding spending and investment.

Buying opportunities

Warren Buffett has an excellent track record of capitalising on low valuations during a stock market crash. While most investors become fearful when share prices decline, Buffett sees lower stock prices as an opportunity to buy high-quality businesses at discounted valuations.

Part of the reason Buffett takes this view is that he has a long-term view of his portfolio. Its short-term performance does not seem to interest him, as long as there is the opportunity for it to grow over a period of many years. Through being able to look beyond short-term volatility and instead plan for the long term, you can more easily use market movements to your advantage when seeking to build a large portfolio.

Furthermore, Buffett invests in high-quality businesses after a market crash that are likely to not only survive short-term economic challenges, but improve their market position through having a competitive advantage. They are likely to offer less risk, and greater return potential, in the long run due to a unique product, lower cost base or other factors such as a loyal customer base. Such companies may be better able to adapt to changing market conditions, and deliver relatively high profit growth.

Being prepared

Clearly, a second stock market crash in 2020 is not guaranteed. The world economy could experience an improving period that lifts investor sentiment.

However, it may be prudent to prepare for a second market decline through having some cash available to invest. It may help you to view a stock market fall as a buying opportunity, rather than a reason to worry. Through adopting that mentality, you could follow in Buffett’s footsteps and generate market-beating returns in the long run.

More reading

• Why ASX income investors need to consider these dividend ETFs in 2020
• 3 personal finance tips to help strong investing
• Smash low interest rates with these ASX dividend shares
• 3 five-star ASX stocks to buy right now
• These were the best performing ASX 200 shares last week

Motley Fool contributor Peter Stephens 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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2020 has been an especially tough year for ASX dividend income investors. The conventional dividend wisdom of the ASX that has lasted decades has seen its end in 2020. The ASX banks being the kings of the ASX fully franked dividend? No longer. Buying Sydney Airport Holdings Pty Ltd (ASX: SYD) or Transurban Group (ASX: TCL) for ‘safe’ cash flow? Not anymore.

The earnings reporting season we’ve just gone through was a bit like a game of cat and mouse when it comes to dividends. Some companies cut theirs, others kept them steady and some even increased them. But for a dividend investor with what used to be considered a diversified income portfolio, I’m sure it was an anxious wait. Surely there’s a better way of receiving dividend income that sticking with a bunch of companies you hope will be able to continue to give out cash flow each year. That’s a recipe for a very anxious earnings season in FY2021.

Luckily, I think there’s another way to deal with the dearth of dividends that 2020 has brought. And it’s using exchange-traded funds (ETFs).

How does a dividend ETF work?

Like all ETFs, a dividend-focused ETF will hold a basket of ASX shares within the single fund. However, unlike a pure index fund like the Vanguard Australian Shares Index (ASX: VAS), a dividend-focused ETF will only hold companies that fit its income criteria. That usually starts with the presence of the dividend itself and might include other factors, such as franking credits offered or how sustainable the dividend is.

That’s all well and good, but why is this an especially piquant idea for 2020?

Well, an ETF can adjust its underlying holdings every quarter without you as the owner required to exert any time and effort.

Take 2 income-focused ETFs – the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD).

Backtrack a couple of years and both of these funds probably would have had the big four ASX banks as their top holdings. But seeing as bank dividends have more or less dried up in 2020, you’ll instead find the likes of BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES) dominating VHY and Woolworths Group Ltd (ASX: WOW) and Macquarie Group Ltd (ASX: MQG) at the top of IHDs holdings.

If these companies (hypothetically) happen to tell investors they won’t be paying a dividend in FY21, you’ll probably find companies like Telstra Corporation Ltd (ASX: TLS) and Rio Tinto Limited (ASX: RIO) taking their place before too long. And again, without you as the beneficial owner having to expend time or labour. 

Foolish takeaway

As such, I think all ASX dividend income-focused investors should at least consider adding an income fund like VHY or IHD to their portfolios in 2020. There are so many variables impacting the level of dividends coming out of the ASX this year, and it’s impossible (in my view) to completely map out a comprehensive income strategy as a result, at least for this year. I think including a dividend ETF can help manage this dilemma.

More reading

• 2 ASX ETFs that can solve your income needs
• Forget Westpac’s term deposits and buy these ASX dividend shares
• How to earn a passive income of $50,000 with ASX dividend shares
• 2 quality ASX dividend shares for income investors to buy today
• Looking for dividends? Buy these ASX ETFS in September

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited and Vanguard Australian Shares High Yield Etf. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of Transurban Group, Wesfarmers Limited, 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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Many people may think that investing into ASX shares is the only thing you need to think about when it comes to personal finance.

However, I think it’s important to have a good foundation and a good money mindset so that you can invest confidently.

Here are three good personal finance tips:

Have an emergency fund

I think it’s important for every adult Australian to have an emergency fund. At least $1,000 is a good target in my opinion. Having that cash set aside can be invaluable when you need it most.

I believe that having that cash reserve set aside allows you to take on a little more ‘risk’ with your investing. I’m not saying that having an emergency fund should mean you invest in small cap biotech shares. I just mean that having cash set aside can allow you to confidently invest more into (ASX) shares.

Perhaps having an emergency fund would allow you to go for more growth options like Pushpay Holdings Ltd (ASX: PPH) or City Chic Collective Ltd (ASX: CCX). You won’t feel as though you need to go for defensive ideas. 

Personal finance is important for your life and your family. If you have children and a mortgage then it could be a good idea to have up to six months of living expenses set aside in a high interest savings account. There are plenty of places to find a savings account including businesses like Macquarie Group Ltd (ASX: MQG) and Suncorp Group Ltd (ASX: SUN).

Don’t take on risky debt

I think debt is a very dangerous thing when it comes to investing.

It’s almost impossible to buy a property without using debt. However, that’s not the case with investing in shares. You can invest with as little as $500 – you don’t need to borrow to do it.

Debt can accelerate your returns if your investment picks are good. However, the risk of a wipeout is too much in my opinion.

A margin loan could be called precisely when you want to be buying shares not selling them. Selling in a market crash would permanently reduce your wealth.

Every person’s personal finance mindset is different. But if you have debt hanging over your portfolio then you may not invest the same as if you didn’t have that debt. That would be a shame in my opinion. I think it’s best to avoid having high-risk debt when it comes to investing in shares.

And don’t forget, debt isn’t free money. You have to pay interest, which reduces your returns.

Regularly invest

Unless you’re in retirement, most people reading this will be able to invest regularly over the coming years. Or at least when the COVID-19 impacts are over.

A few people may be able to find the next Apple at an early stage and make millions from a relatively small investment. However, you can’t assume that will happen for your portfolio.

I believe the easiest way to invest is to regularly put money to work in your investment account – whether that’s inside or outside of superannuation. The more you put in the more it can grow. If you invest regularly it’s less likely that you’ll miss any good buying opportunities.  

Personal finance can be very simple if you ‘automate’ most of your money. That includes your investment schedule. 

You can regularly invest into your best ASX share ideas – for me it’s something like Pushpay – or you can go for your favourite exchange-traded fund (ETF) like BetaShares Global Quality Leaders ETF (ASX: QLTY) or fund manager like Magellan Global Trust (ASX: MGG).

More reading

• Suncorp cuts 550 jobs
• 2 top notch ASX shares for beginners
• Where to invest $10,000 into ASX shares today
• 3 quality ASX shares that could provide monster returns
• Where to invest $10,000 into ASX shares

Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant continues to expect the cash rate to stay on hold for as far out as its forecasts go.

This unfortunately means that it could be years before interest rates return to “normal” levels again.

In light of this, I believe ASX dividend shares will remain the best option for income investors for the foreseeable future.

But which dividend shares should you buy? Two that I think would be top options are listed below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is leading provider of software products and services to the wealth management and funds administration industries. It offers a number of quality products such as the Sonata wealth management platform. This popular wealth management platform allows advisers to connect and engage with clients via computers, tablets, or smartphones. It also has the Rufus transfer agency solution, the Garradin back office solution, and the recently acquired Midwinter financial planning solution.

Bravura’s shares have fallen heavily this year due to the impact of the pandemic on its performance. While its near term performance might underwhelm, I’m confident its growth will accelerate again once the crisis passes. This could mean it is a great time to make a patient investment in its shares. Especially given how they offer an attractive 3.3% dividend yield.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to consider buying is Dicker Data. It is the leading wholesale distributor of computer hardware and software across the ANZ region. I think it could be a great long term option due to its strong market position, growing vendor agreements, positive tailwinds, and new distribution centre. The latter gives the company significant room to expand its operations and boost its revenue growth once complete. 

For now, this year the company intends to increase its dividend by 31% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.

More reading

• 2 ASX dividend shares to buy after the selloff
• 3 quality ASX shares that could provide monster returns
• Why I would buy these quality ASX dividend shares in September
• 3 ASX shares for growth, income, and value investors to buy right now
• 2 ASX dividend shares to buy instead of CBA

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Dicker Data 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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If you’re looking for additions to your portfolio in September, then I think the three ASX shares listed below would be great options.

I believe they are among the best on offer on the Australian share market and could generate strong returns for investors over the next decade.

Here’s why I rate them as five-star shares:

Appen Ltd (ASX: APX)

The first five-star share to buy is Appen. It is a growing tech company which has a team of over one million crowd-sourced experts preparing the data for the artificial intelligence (AI) and machine learning models. Among its customers are some of the biggest tech companies in the world such as Facebook, Microsoft, and Apple. In addition to this, thanks to the acquisition of Figure Eight last year, the company now has strong position in the government sector. This bodes well for its future growth given the billions of dollars that many Western governments are allocating to their AI activities. All in, I believe Appen is well-positioned to grow its earnings at an above-average rate over the 2020s.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another five-star option for investors to consider buying is the BetaShares NASDAQ 100 ETF. This exchange traded fund gives investors access to a large number of high quality companies listed on the famous Nasdaq index. This includes the likes of Amazon, Facebook, Microsoft, Nvidia, Starbucks, and Tesla, to name just a few. Collectively, I believe this group of shares are well-placed to grow at an above-average rate over the next 10 years. This could mean the NASDAQ 100 index continues to outperform the ASX 200 index for some time to come. I think this could make it well worth taking advantage of a recent pullback in the BetaShares NASDAQ 100 ETF share price.

NEXTDC Ltd (ASX: NXT)

NEXTDC is Asia’s most innovative Data Centre-as-a-Service provider and a company I would give five stars to. It is currently building the infrastructure platform for the digital economy, putting it in a fantastic position to benefit from the cloud computing boom. As cloud computing usage increases, I expect demand for its innovative data centre outsourcing solutions and connectivity services to increase with it. This certainly was the case in FY 2020 when NEXTDC posted a 23% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million.

More reading

• 3 ways Aussies can buy Tesla (NASDAQ:TSLA) shares
• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• Brokers name 3 ASX shares to buy right now
• This ASX tech share is still cheap to buy
• 2 exciting ASX growth shares to buy in September

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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The S&P/ASX 200 Index (ASX: XJO) was out of form last week and tumbled lower. The benchmark index dropped 66.1 points or 1.1% to end the period at 5,859.4 points.

While the majority of shares on the index tumbled lower with the market, some managed to push higher. Here’s why these were the best performers on the ASX 200 last week:

Nufarm Limited (ASX: NUF)

The Nufarm share price was the best performer on the ASX 200 last week with a 12.9% gain. Investors were buying the agricultural chemicals company’s shares after analysts at Morgans upgraded them. According to the note, the broker upgraded Nufarm’s shares to an add rating with an improved price target of $4.85. Although it expects a soft FY 2020 result later this month, it suspects that this could be the bottom of the cycle.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The CLINUVEL share price was on form and stormed 7.9% higher last week. The catalyst for this was the biopharmaceutical company announcing that it is looking to expand its SCENSSE product to treat the disease xeroderma pigmentosum. This is a rare genetic disorder where sufferers have the most extreme deficiencies in their DNA repair processes, leading to a 10,000-fold increase in their risk of skin cancer. There is no known cure for disease at present. CLINUVEL’s SCENSSE product is currently used to treat rare genetic disorder Erythropoietic Protoporphyria.

Vocus Group Ltd (ASX: VOC)

The Vocus share price was a strong performer and also climbed 7.9% higher over the five days. This is despite there being no news out of the telecommunications company last week or any broker notes that I’m aware of. However, a week earlier Yarra Funds revealed that it has been increasing its stake in the company. Yarra Funds has added approximately 9.2 million shares since early in August, increasing its stake to ~6.7%.

Sims Ltd (ASX: SGM)

The Sims share price wasn’t far behind with a gain of 7.8% last week. This appears to have been driven by a broker note out of Macquarie. Its analysts retained their outperform rating and lifted the price target on this scrap metal company’s shares to $11.00. The broker notes that strengthening steel demand is underpinning a rebound in scrap prices. It expects this to support volumes and margin improvements.

More reading

• These were the worst performing ASX 200 shares last week
• The ASX 200 is still stuck in a rut
• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• The latest ASX stocks upgraded by brokers to “buy” today
• Afterpay (ASX:APT) share price facing new competitive pressure

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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