Author: therawinformant

I’m sure that many readers have aspirations to become a millionaire one day. While a lucky few may achieve this through winning the lottery, the odds are certainly not in your favour.

Instead, I would suggest readers grow their wealth by investing in the share market. Especially given how there are a number of ASX shares that have made regular investors millionaires over the last decade or two.

Take for example electronic design software company Altium Limited (ASX: ALU). Over the last 10 years the Altium share price has generated an average return of 66.4% per annum.

This means that a single $6,500 investment in 2010 would now be worth just over $1 million. 

But that was then and this is now. Which ASX shares could be future millionaire makers? My money would be on these ASX shares:

ELMO Software Ltd (ASX: ELO)

I think ELMO Software is worth looking closely at and could be a future millionaire maker. It is a cloud-based human resources and payroll software company that provides a unified platform to streamline processes for businesses. ELMO was a strong performer in FY 2020 despite the pandemic. It grew its annualised recurring revenue (ARR) by 19.7% to $55.1 million. The good news is that management expects similarly strong organic ARR growth in FY 2021. But perhaps even better is the mountain of cash the company is sitting on. It ended the period with a cash balance of $140 million, the bulk of which it plans to deploy on value accretive acquisitions in the near future. Looking longer term, I believe ELMO is well placed for long term growth thanks to its massive market opportunity and the continued shift to automated platforms.

Nearmap Ltd (ASX: NEA)

Another ASX share that I think could be a future millionaire maker is Nearmap. It is a leading aerial imagery technology and location data company. I believe it has enormous potential to dominate a highly fractured market and generate very strong returns for investors over the next decade. Especially given its high quality technology (which includes an excellent new AI offering), the cost savings it offers, and its significant global market opportunity.

Pushpay Holdings Group Ltd (ASX: PPH)

A final potential millionaire maker share is Pushpay. It is a donor management platform provider for the faith sector and has been growing at a rapid rate in recent years thanks to its leadership position in a niche but lucrative market. The good news is that this rapid growth doesn’t look likely to stop any time soon. Management has set itself a target of winning a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many times greater than FY 2020’s revenue of US$127.5 million. It also looks set to deliver improving margins in the coming years thanks to the benefits of scale and last year’s acquisition of Church Community Builder for total cash consideration of US$87.5 million. As a result, I expect its earnings growth to outpace its ARR growth this decade.

More reading

• 3 ASX growth shares to buy in September
• Top brokers name 3 ASX shares to buy next week
• Where to invest $100,000 into ASX shares right now
• At this share price is Pushpay a millionaire maker?
• 3 exciting mid cap ASX tech shares to buy for the long term

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 and recommends Altium and Elmo Software. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Elmo Software. 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 there are a number of S&P/ASX 200 Index (ASX: XJO) growth shares that have a place in a portfolio.

In my opinion, not every ASX 200 share is worth investing in. I think some ASX shares have quite limited medium-term profit growth prospects like BHP Group Ltd (ASX: BHP) and Westpac Banking Corp (ASX: WBC).

But I think there are other ASX 200 growth shares that could generate strong returns:

A2 Milk Company Ltd (ASX: A2M)

I think that A2 Milk could be the best value ASX 200 growth share. The infant formula business still has plenty of international growth potential in my opinion.

The FY20 result from A2 Milk was very strong. Total revenue increased by 32.8% to NZ$1.73 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 32.9% to NZ$549.7 million. Net profit after tax (NPAT) rose by 34.1% to NZ$385.8 million.

What gives me hope for continued strong growth is that its distribution network continues to grow. In China its Chinese label infant formula nutrition has expanded to approximately 19,100 stores, compared to 18,300 at 31 December 2019. The US distribution network has grown to 20,300 stores, up from 17,500 at 31 December 2019 and 13,100 stores at 30 June 2019.

It can take a while for a consumer to try a new brand, so just the stores added this year alone could add to incremental growth for the ASX 200 share for the next few years.

I really like the growth potential into the Canadian market. An exclusive licensing agreement has been entered into with Agrifoods International Cooperative for the production, distribution, sales and marketing of A2 Milk branded liquid milk. The product has recently been launched to a number of customers in Western Canada.

A2 Milk is currently trading at 28x FY22’s estimated earnings.

Tassal Group Limited (ASX: TGR)

Tassal may not strike you as a growth share, but I think it continues to impress.

In FY20 the salmon and prawn business reported a number of good numbers. Operating EBITDA rose by 23.4% to $138.6 million with salmon operating EBITDA per kilo up by 4.3% to $3.29 (pre AASB 16).

The ASX 200 share reported that operating EBIT increased by 12.7% to $99.8 million and operating NPAT rose by 13.3%. Statutory net profit went up 18.3% to $69.1 million.

I’ve been impressed by the fish company’s ability to continue to grow its biomass and production efficiencies whilst boasting of “industry world best ESG initiatives”.

Fish is an important food source. With many other protein sources potentially being disrupted by COVID-19, demand for salmon could continue to rise.

In FY21 the company is looking to reduce costs with salmon after the improvements at its farming operations. In prawns it’s looking to increase its harvest volumes to around 4,000 tonnes to lift prawn earnings and generate “substantial growth”.

As a bonus, Tassal offers a partially franked dividend yield of 4.7%.

At the current Tassal share price it’s trading at 10x FY22’s estimated earnings.

Brickworks Limited (ASX: BKW)

Brickworks may not instantly strike you instantly as an ASX 200 growth share, but I think it should be considered as one.

The company has a number of growth initiatives which could grow its valuation into the future. The ASX 200 share has a strong existing Australian building products business with categories like bricks, roofing, paving, masonry, precast and so on. Brickworks’ Australian earnings can rise as Australia’s cities grow and renew.

I’m excited by the other avenues of growth. Brickworks recently invested into three brickmaking businesses in the US. I thought these acquisitions were a good idea – it made Brickworks the biggest player in the north east of the country. The United States is a much larger market than Australia, so it adds a lot of addressable market for Brickworks. The company can also improve efficiencies there significantly.

Brickworks currently owns around 40% of investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which owns a portfolio of defensive assets with good growth potential. Soul Patts is an ASX 200 share itself and provides Brickworks with rising dividends and a growing asset base.

The company owns a 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). That industrial trust is investing in building large distribution centres for Coles Group Limited (ASX: COL) and Amazon, which should deliver a sizeable increase in the rental income and value of the trust.

At the current Brickworks share price it offers a grossed-up dividend yield of 4.8%.

More reading

• 3 ASX share reports I loved this week
• Is the A2 Milk share price still a good buy after strong full year results?
• The ASX 200 fell 0.1% today, Suncorp shines
• ASX 200 flat: Suncorp surges higher, A2 Milk acquisition plans, TPG’s half year update
• Why a2 Milk, Coca-Cola Amatil, Star, & Suncorp shares are charging higher

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk and 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.

The post 3 ASX 200 growth shares to buy right now appeared first on Motley Fool Australia.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

According to a note out of Citi, its analysts have retained their sell rating but lifted the price target on this pizza chain operator’s shares to $59.60. While the broker was pleased with its growth in FY 2020 and notes that the new financial year has started strongly, it has concerns over a lack of operating leverage and its valuation. It notes that the company’s shares are trading at a significant premium to the market average. The Domino’s share price ended the week at $85.00.

InvoCare Limited (ASX: IVC)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this funeral company’s shares to $9.00. This follows the release of its half year results last week. Macquarie expects the tough trading conditions to persist in the near term and has downgraded its earnings estimates accordingly. In light of this poor form, it feels a rerating to higher multiples is off the cards for some time. The InvoCare share price last traded at $10.23.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and $3.00 price target on this airline operator’s shares. According to the note, the broker believes there could be upside for its shares over the next couple of years. However, it doesn’t see the current Qantas share price as an attractive entry point and thinks investors should keep their powder dry. Especially given how uncertain the recovery in travel markets is. Qantas shares were changing hands for $3.90 on Friday.

More reading

• WiseTech and 2 more ASX shares outperforming this earnings season
• Should you buy ASX shares before or after reporting season?
• Why I’d buy the Domino’s share price at an all-time high
• The latest ASX 200 stocks hit by broker downgrades
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and InvoCare 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 new month is upon us, so what better time to consider an addition or two to your portfolio.

If you’re interested in growth shares then I think the three shares listed below could be worth considering in September. Here’s why I like them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX growth share to consider buying is actually an exchange traded fund (ETF) that gives investors access to a group of the most promising technology companies in the Asian market. A total of 50 of the largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan) are included in the fund. These include tech giants such as Alibaba, Baidu, JD.com, and Tencent Holdings. BetaShares notes that due to its younger, tech-savvy population, Asia is surpassing the West in respect to technological adoption. As a result, the sector is anticipated to remain a growth sector for a long time to come. I believe this bodes well for the 50 companies included in the fund.

NEXTDC Ltd (ASX: NXT)

A second growth share to consider buying is NEXTDC. It is an innovative data centre-as-a-service provider with a growing network of centres in key locations across Australia. NEXTDC has been a very strong performer this year because of the accelerating shift to the cloud. This has driven exceptionally strong demand for its services and appears to have positioned the company to deliver stellar profit growth in the coming years. The company also has the option to accelerate its growth through further expansions in capacity, its network, and perhaps even into the Asia market. Overall, I believe the NEXTDC share price could be a market beater over the 2020s.

Pushpay Holdings Group Ltd (ASX: PPH)

A final growth share that I would buy is Pushpay. It is a donor management platform provider for the faith, not-for-profit, and education sectors which has carved out a big slice of the massive U.S. market in recent years. Pleasingly, thanks to the quality of its platform, it appears well-placed to continue growing its share over the 2020s. Especially given the US$87.5 million acquisition of church management system provider Church Community Builder last year. This acquisition has strengthened its offering and looks set to support margin expansion over the coming years. And while the Pushpay share price may have doubled in value over the last 12 months, I don’t believe it is too late to invest. I’m confident its shares can still go materially higher from here over the next decade.

More reading

• Where to invest $25,000 into ETFs right now
• At this share price is Pushpay a millionaire maker?
• 3 high quality international ETFs for ASX investors to buy right now
• Where to invest $10,000 into ASX shares immediately
• The smartest 7 ASX shares to buy if you have $2,000

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and 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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Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $101.00 price target on this payments company’s shares following its guidance upgrade. The broker was pleased with this development. In addition to this, the broker believes the company was operating with conservative credit settings during the second half and would have delivered an even stronger result if the economic environment were more certain. I agree with Morgan Stanley and feel Afterpay would be a great buy and hold option. Though, I would suggest investors restrict an investment to just a small part of a balanced portfolio.

CSL Limited (ASX: CSL)

Analysts at UBS have retained their buy rating and lifted the price target on this biotherapeutics company’s shares to $346.00. This follows an FY 2020 result which was in line with expects and positive guidance for the year ahead. Overall, it appears to see a decent risk/reward on offer with its shares at the current level. I would have to agree with UBS on this one and believe CSL is a great option for investors.

Nearmap Ltd (ASX: NEA)

A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this aerial imagery technology and location data company’s shares to $3.00. According to the note, the broker has lifted its estimates in FY 2021 to account for stronger annualised contract value. The broker also notes that Nearmap is aiming to achieve positive cash flow in the new financial year. I think Citi is spot on and Nearmap could be a great option for investors.

More reading

• 5 things to watch on the ASX 200 next week
• 3 exciting mid cap ASX tech shares to buy for the long term
• 2 ASX 50 shares to buy for your retirement portfolio
• Should you buy ASX shares before or after reporting season?
• Buy CSL and these quality ASX blue chip 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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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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I think that it makes a lot of sense to invest money into exchange-traded funds (ETFs).

ETFs allow investors to take a passive approach to investing into the share market without having to make the decisions about what shares to buy and sell – the ETF does it automatically.

An ETF is usually the type of investment that you could make and hold for many years, perhaps for the rest of your life.

They can give you good diversification with a single investment, which lowers risks.

Here are the ones I’d buy with $25,000 today:

Betashares Ftse 100 ETF (ASX:F100) – $5,000

This one is invested in the largest 100 businesses on the UK share market. In many ways the ASX is similar to the London Stock Exchange, although the UK has a few more global businesses than Australia.

Looking at the top holdings, these are the biggest 10 exposures: Astrazeneca, GlaxoSmithKline, HSBC, Diageo, British American Tobacco, BP, Rio Tinto, Unilever, Reckitt Benckiser and Royal Dutch Shell.

I like the diversification offered by the London Stock Exchange – there isn’t a heavy focus on financials and materials.

The UK share market has been through a tough time in recent years due to Brexit, but I think there’s good value there. Be greedy when others are fearful, as the saying goes.

When COVID-19 passes I think this ETF could pay a very attractive dividend to investors.

BetaShares Global Quality Leaders ETF (ASX: QLTY) – $15,000

This is one of my favourite ETF ideas these days. I think a focus on quality should generate good results. Indeed, this ETF has performed very well since inception in November 2018, it has produced net returns of 18.8% per annum.

Its investments come from across the world. Whilst around two thirds of the portfolio is invested in (multi-national) US shares, it’s also invested in businesses in various other countries like Japan, Switzerland, France, Denmark and so on.

Businesses have to rank well on four metrics to make into the portfolio: return on equity (ROE), debt to capital, cash flow generation ability and earnings stability.

A group of businesses that do well on all of these metrics are likely to generate solid total shareholder returns.

What businesses make it into the holdings? The biggest positions are: Apple, Nvidia, Adobe, Accenture, Facebook, Intuit, Nike, Intuitive Surgical, Texas Instruments and Alphabet (Google).

I like that it’s not just focused on one country, one region or one industry. Plus, you get the high-quality exposure for an annual fee of just 0.35% per annum.

BetaShares Asia Technology Tigers ETF (ASX: ASIA) – $5,000

Asia is a huge part of the global economy, I think it could be a mistake to largely ignore the whole region, which many ETFs do.

There are plenty of China risks when it comes to this ETF. Chinese businesses make up more than half of this ETF. However, I think the reward potential is higher if you focus on just the technology shares listed in Asia.

I think the Asian tech giants are the equal to technology giants in the US. Indeed, technology adoption is high in Asia and that’s helping the Asian tech businesses grow at a fast pace. 

These are some of the largest positions in the Asian technology ETF: Taiwan Semiconductor Manufacturing, Meituan Dianping, Alibaba, Tencent, Samsung, JD.com, Netease, Infosys, Pinduoduo and Sea.

This ETF has been a strong performer – over the past year it has returned 56% after fees, and since inception in September 2018 it has returned 27.8% per annum.

The annual management fee is 0.67% per annum, which is on the pricier end of possible ETFs, but it would cost a lot more if we invested through an active manager.

Foolish takeaway

I like each of these ETFs. I particularly like the global quality ETF – it’s the type of investment that one could seemingly hold for many years and see strong returns. But I think the other two ETFs offer good income and growth prospects respectively.

More reading

• 3 high quality international ETFs for ASX investors to buy right now
• Have $3,000 to invest? Try these 2 dirt-cheap ASX shares
• 2 fantastic ETFs for ASX growth investors to buy today
• 2 exciting high-growth ETFs to buy for high returns today
• 2 ASX shares I would buy for growth and income

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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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Unfortunately for income investors, interest rates are currently at ultra-low levels and look unlikely to improve for some time to come.

The good news is that there are still plenty of ASX dividend shares that offer generous yields.

But which dividend shares should you buy? Here are two ASX dividend shares I would buy:

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust that owns a diversified portfolio of high quality agricultural assets across Australia. This includes macadamia orchards, cattle assets, cotton assets, vineyards, and almond orchards. These assets are leased to some of the most experienced agricultural operators in the country such as Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV). 

Thanks to its ultra long-term tenancy agreements and the inclusion of periodic rent increases, I believe Rural Funds is in a great position to continue growing its distribution at a solid rate over the next decade. Management has a target of ~4% distribution growth each year and looks set to deliver on this in FY 2021. It is forecasting an 11.28 cents per share distribution this financial year. Based on the latest Rural Funds share price, this equates to a 5.15% yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to consider buying is this telco giant. The Telstra share price has come under pressure this month following the release of its full year results. This is because its guidance for FY 2021 implies that there will be a dividend cut this year. While this is a distinct possibility due to its existing dividend policy, I would argue that its policy is out of touch with its current financials. This is because it is based on its accounting earnings, which is actually lower than its free cash flow.

A switch to a free cash flow based dividend policy would allow the company to maintain its current dividend if it delivers on its guidance. Analysts at Goldman Sachs believe this is likely to occur and have held firm with their estimate for a 16 cents per share dividend in FY 2021. Based on the current Telstra share price, this will mean a fully franked 5.25% dividend yield in 2021.

More reading

• 5 blue chip ASX 200 shares a beginner can use to start a share portfolio
• 2 ASX dividend shares with yields over 7%
• Why I would buy Telstra and this ASX dividend share today
• 3 fantastic ASX 200 shares for retirees to buy
• Afterpay and Mesoblast were among the most traded shares on the ASX last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra 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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Starting a portfolio of ASX 200 shares can be hard for a beginner investor. We Fools like to say that any new investor should aim to ramp to have at least 15 shares in their portfolios quickly as possible.

With this many investments, you can mitigate ‘single-company’ risk somewhat and start enjoying the benefits of a diversified portfolio. But which shares to choose?

Here’s a list of 5 ASX shares from the S&P/ASX 200 Index (ASX: XJO) that I think would make a great foundation for any beginner portfolio.

Telstra Corporation Ltd (ASX: TLS)

Telstra is the largest telco on the ASX and a staple company for thousands of ASX investors. I like it for a beginner for its strong dividend and future 5G growth potential.

Commonwealth Bank of Australia (ASX: CBA)

Owning an ASX bank used to be some kind of ‘rite of passage’ for ASX 200 share investors. But 2020 has been a tough year for the banking sector and the banks don’t elicit the same starry eyes as they used to.

Still, if you’d feel better with an ASX banking share in your portfolio, I think CBA is the pick of the bunch. It has managed to maintain a reasonable dividend this year and should recover in line with the broader economy over the next few years.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the largest conglomerates on the ASX and has a mindblowing portfolio of investments of its own. Not only does it own the Bunnings, Target, Kmart and Officeworks store chains, it also owns mines, chemical manufacturing facilities and a clothing line under its belt. Wesfarmers is a strong, stable company with a robust dividend and would not look out of place in any ASX portfolio in my view.

Woolworths Group Ltd (ASX: WOW)

Woolies should be familiar with most ASX investors. Not only does it own the eponymous supermarket chain, but Woolworths also owns a vast network of bottleshops and pubs, which include the Dan Murphy’s and BWS outlets. I like Woolworths as a conservative and defensive investment, and so I think it would make a great share for a beginner portfolio.

BHP Group Ltd (ASX: BHP)

Normally, I’m not too wild on mining shares for a beginner. But BHP’s proud history, massive size and diversified earnings base prompt me to make an exception. BHP has operations spanning coal, petroleum, copper and iron ore mining. The company is an ultra-low-cost producer, which means it stands to benefit if any of these commodities have a pricing boom. As such, I think the Big Australian is another great share to own in a diversified portfolio.

Foolish takeaway

I’m not saying these 5 ASX 200 shares are essential for a new portfolio, but I do think they are good places for a beginner to start with. You can choose all of them, some or none at all. As long as you aim to build up your portfolio with quality companies, you can’t go wrong!

More reading

• 2 of the best ASX dividend shares to buy next week
• 5 things to watch on the ASX 200 next week
• 2 ASX dividend shares for income investors to buy next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of 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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Last week the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small weekly decline. The benchmark index lost 0.2% over the five days to end it at 6,111.2 points.

Another busy one is expected next week with a large number of major results due to be announced.

Here are five things that I think investors should be watching next week:

ASX futures pointing lower.

The ASX 200 is expected to start the week as it finished it. According to the latest SPI futures, the benchmark index is poised to open the week 11 points lower. This is despite a solid finish to the week on Wall Street with all three major indices pushing higher. The Dow Jones rose 0.7%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.4% higher.

Afterpay full year results.

The Afterpay Ltd (ASX: APT) share price was on form last week and reached a record high of $82.00. All eyes will be on its shares on Thursday when it releases its full year results. While its results have largely been pre-released (EBITDA of ~$44 million), investors will no doubt be interested to learn how it has fared in FY 2021 and whether it has any further expansion plans. Rival Zip Co Ltd (ASX: Z1P) will also be releasing its results on Thursday.

Flight Centre to report major loss.

The Flight Centre Travel Group Ltd (ASX: FLT) share price will be in focus on Wednesday when its eagerly anticipated full year results are released. The travel agent giant is expecting to report a significant loss after tax in FY 2020 because of the pandemic. It has provided guidance for a statutory loss of between $825 million to $875 million.

Fortescue tipped to declare a big dividend.

On Monday the Fortescue Metals Group Limited (ASX: FMG) share price will be on watch when the iron ore producer releases its full year results. Thanks to improving grades, sky high prices, and record shipments, Fortescue is expected to report a bumper profit result. As a result, analysts are forecasting a generous full year dividend. Macquarie, for example, has forecast a fully franked dividend of ~$1.80 per share for FY 2020. This represents a 10% dividend yield.

Tech star Appen to report half year results.

The Appen Ltd (ASX: APX) share price stormed to a record high of $40.93 last week. Investors appear to be betting on the artificial intelligence company reporting another strong half year result on Thursday. In May, Appen reaffirmed its full year guidance for underlying EBITDA in the range of $125 million to $130 million. Judging by its share price performance, investors may be optimistic that an upgrade is coming.

More reading

• These were the best performing ASX 200 shares last week
• Where to invest $100,000 into ASX shares right now
• These were the worst performing ASX 200 shares last week
• The ASX 200 fell 0.1% today, Suncorp shines
• Where to now for the NIB share price?

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 AFTERPAY T FPO and Appen 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.

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If you’re looking for a way to beat low interest rates, then the ASX dividend shares listed below would be worth considering.

I believe both dividend shares would be great options for income investors due to their generous yields and strong businesses. Here’s why I would buy them:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the resources sector, then I would suggest you consider buying BHP shares. This is because BHP owns and operates some of the highest quality assets in the world. It also has several growth opportunities, particularly in respect to oil production, that could create value for investors in the future.

Another positive is its low costs and favourable commodity prices. The latter is certainly the case with iron ore, with the steel making ingredient commanding a price of over US$120 a tonne at present. This means BHP’s iron ore operations are generating high levels of free cash flow. The majority of which I expect to be returned to shareholders. So much so, I estimate that BHP’s shares currently provide investors with a fully franked ~5% FY 2021 dividend yield.

National Storage REIT (ASX: NSR)

Another dividend share to consider buying right now is National Storage. I think the self storage operator could be a top long term option for income investors due to its strong market position and growth through acquisition strategy. And although the company is inevitably going to be impacted by the pandemic, I don’t believe it will be as bad as many of its real estate peers.

As a result, I’m optimistic National Storage will be able to continue paying shareholders a decent distribution during over the coming year. Based on the current National Storage share price, I estimate that it offers a 4.4% FY 2021 distribution yield.

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• How the OZ Minerals share price is benefitting at Rio Tinto’s expense
• Tech shares race to record highs as Bank of America tips BHP and Rio shares
• Why I would buy CBA and this ASX dividend share for income

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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