Author: therawinformant

It’s getting harder to find good levels of income these days. ASX dividend shares could be the answer.

However, just because something has a seemingly big dividend yield doesn’t mean it’s automatically a good choice. Just look at Commonwealth Bank of Australia (ASX: CBA) – its final dividend was cut heavily and the next interim dividend could be cut too.

I don’t think there are many ASX blue chips with large yields that could solid dividend payers during this period. Wesfarmers Ltd (ASX: WES) and APA Group (ASX: APA) would be two blue chips I’d be happy to rely on for income. The problem is that their starting yields aren’t that high.

These ASX dividend shares have big yields and I think the dividends will grow over time:

Naos Emerging Opportunities Company Ltd (ASX: NCC)

This business is a listed investment company (LIC) which invests in small ASX shares with market capitalisations under $250 million. This is the small end of the ASX.

One of the main benefits of LICs is that fund managers can make investment returns – largely capital gains – and then it can steadily pay out those gains as a smoothed dividend.

The Naos LIC has done very well with its dividend. It started paying a dividend in FY13 and it has grown or maintained its dividend every year since.

At the end of July 2020 the ASX dividend share offered a grossed-up dividend yield of 12.3%. At the current Naos Emerging Opportunities Company share price it’s trading at a 13.5% discount to its pre-tax net tangible assets (NTA) per share. That means you can buy $1 for shares for $0.875

At the end of last month it had nine positions in its portfolio., so it’s a high conviction portfolio. But it offers diversification as well.

Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is a real estate investment trust (REIT) which owns agricultural farmland. Specifically, it owns berry and citrus fruit farms. At the moment all of its farms are leased to Costa Group Holdings Ltd (ASX: CGC).  

The ASX dividend share generates rental income in two ways. It receives a fixed rental income from Costa and it also has a profit share agreement – it receives 25% of the profit from the farms.

Costa’s earnings have been troubled over the past couple of years because of the drought, crumbly berries and fruit flies at the citrus farms. Despite all of those issues, Vitalharvest’s distribution still amounts to a 6% yield today.

If profitability per share returned to the 2019 levels then Vitalharvest’s distribution yield could be 7.1%.

The ASX dividend share has recently switched managers. The new one will be looking for acquisitions to increase diversification and boost the rental profit (and the distribution). The new targets may offer a more stable income as well.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

PM Capital Global Opportunities Fund is another LIC. This one targets overseas shares.

The ASX dividend share has a current grossed-up dividend yield of 6.5%. The LIC just increased its final dividend by 25% to 2.5 cents per share. If it pays another 2.5 cents per share dividend in six months then it will have a grossed-up dividend yield of 7.25% today.

Some of the shares that it currently owns includes Visa, Siemens, Bank of America, Freeport-McMoRan, Oracle, KKR & Co and Alphabet (Google).

It has increased its dividend each year since 2016 and it could keep growing its dividend over the long-term if its investments turn out well.

At the current PM Capital Global Opportunities Fund share price it’s trading at a 16.5% discount to the NTA at 7 August 2020.

Foolish takeaway

Each of these ASX dividend shares offer something different for income investors. The Naos LIC has a huge yield. Vitalharvest offers alternative income with its food-related properties. PM Capital Global Opportunities Fund has a steadily-growing dividend with good diversification.

More reading

• 3 ASX shares trading at crazy cheap prices
• Why the FY20 result sent the PM Capital Global Opportunities Fund share price up 4%
• Top ASX dividend shares to buy in August 2020
• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• 2 ASX shares that are absurdly cheap right now

Motley Fool contributor Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd. The Motley Fool Australia owns shares of APA Group and 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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The ecommerce trend is booming right now. Australia was slowly moving towards online shopping due to convenience but now COVID-19 restrictions (and consumer habits) are causing a rapid rise in ecommerce. Some ASX shares are profiting. 

There are a few different ways you can try to play this.

There are some ASX share retailers that are seeing a huge amount of online sales growth such as Premier Investments Limited (ASX: PMV) and Adairs Ltd (ASX: ADH). However, some of that ecommerce trend may reverse once stores are open nationally again, leading to more sales being done in-store. But these are good options to consider for ecommerce growth. 

It could be better to think about getting exposure to ecommerce through one of these ASX shares:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an online furniture and homewares retailer. The company has seen a huge amount of growth over the past six months.

The ASX share said that in FY20 it grew revenue by 74%, in the second half of FY20 revenue increased by 96% and in the fourth quarter revenue rose by 130%. Active customers increased by 70% year on year.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 467% to $8.5 million during FY20.

Temple & Webster is clearly growing at an impressive rate. But the Temple & Webster share price has also rocketed – since 23 March 2020 the share price has gone up 400%.

In July the company said its revenue growth rate was in line with the fourth quarter of FY20 (where it was up 130%).

The ASX share will need to keep up strong growth to justify the current share price, but it if it does it could become pleasingly profitable because of the cheaper online model.

Brickworks Limited (ASX: BKW) and Centuria Industrial Reit (ASX: CIP)

Centuria Industrial Reit is the largest real estate investment trust (REIT). Logistics is an important part of the ecommerce trend and this REIT could be one of the better ways to gain exposure to the underlying trend. It also announced the purchase of a Telstra Corporation Ltd (ASX: TLS) data centre in Melbourne for $416.7 million. The REIT is shifting towards the new industries in Australia.  

The older divisions of Brickworks are the building products and the stock holding of ASX share Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). But it also has an exciting 50% stake of an industrial property trust. This trust is building two large, high-tech warehouses for Amazon and Coles Group Limited (ASX: COL). This should dramatically increase the value and rental earnings of the property trust.

I think both of the above ASX shares are defensive ways to play the rise of ecommerce in Australia.

Kogan.com Ltd (ASX: KGN)

Kogan.com is another ASX share which is an online-only business. It sells a wide variety of different products and items like phones, appliances, office supplies, garden supplies and so on. It also offers services like insurance and superannuation.

The Kogan.com share price has risen by 323% over the past six months. It was growing at a decent rate before COVID-19 but the current conditions have really accelerated its growth.

FY20 revealed an exciting amount of growth and July 2020 has seen that trend continue. Last month gross sales rose by over 110%, gross profit increased by more than 160% and adjusted EBITDA was more than $10 million.

Customers may have made a permanent shift to using Kogan.com as a place they shop with. Active customers have grown to 2.31 million, which is a large customer base for Kogan.com to sell to. It has pretty good network effects – if it can sell more services to the same customer then its profit margins can increase.

Kogan.com would need to keep up the current growth rate for a while to justify the current price, but it may be able to do it.

Foolish takeaway

I think all four of these ASX shares are good ecommerce options. Kogan.com and Temple & Webster are flying high and could keep going up. But I believe that Brickworks is the best value out of the four options with its various divisions with diversified earnings.

More reading

• Important takeaways from the Telstra analyst call
• My favourite 3 ASX share reports of the week
• Telstra and 2 more ASX dividend shares I like in August
• 2 ASX dividend shares with yields over 6% today
• Brokers name 3 ASX shares to buy right now

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks, Premier Investments Limited, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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.

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The S&P/ASX 200 Index (ASX: XJO) was on form gain last week and recorded another strong gain. The benchmark index rose an impressive 2% over the period to finish at 6,126.2 points.

Will there be more of the same next week? Here are five things to watch:

ASX futures pointing lower.

The benchmark ASX 200 looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is poised to open the week 58 points lower on Monday. This follows a reasonably underwhelming finish to the week on Wall Street. On Friday the Dow Jones rose 0.1%, the S&P 500 was flat, and the Nasdaq index fell 0.2%.

CSL results.

On Wednesday the CSL Limited (ASX: CSL) share price will be in focus when it hands in its eagerly anticipated full year results. According to CommSec, the market is expecting the biotherapeutics giant to post a net profit after tax of US$2.11 billion. But perhaps the most important part of its release will be its outlook for FY 2021. There are concerns that disruptions to plasma collections during the pandemic could weigh heavily on its FY 2021 results.

Strong profit growth expected from A2 Milk Company.

Also in focus on Wednesday will be the A2 Milk Company Ltd (ASX: A2M) share price when it hands in its full year results. Management has provided guidance for revenue in the range of NZ$1,700 million to NZ$1,750 million in FY 2020. On the bottom line, according to CommSec, the market is expecting the infant formula and fresh milk company to report a net profit after tax of NZ$389 million. This will be up 35% on FY 2019’s net profit after tax of NZ$287.7 million.

Travel results galore.

Investors will get to see just how badly the pandemic has impacted the travel sector this week. A number of companies with exposure to the travel and tourism markets are scheduled to release their results. This includes Corporate Travel Management Ltd (ASX: CTD) and Crown Resorts Ltd (ASX: CWN) on Wednesday and Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) on Thursday.

Fortescue to declare a massive dividend?

The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch on Monday when it releases its full year results. Expectations are high for the mining giant due to its strong production and the sky-high iron ore price. Last week Macquarie suggested Fortescue could pay a dividend of ~$1.80 per share for FY 2020. This represents a massive 10% dividend yield.

More reading

• How to turn $20,000 into $900,000 in 5 years with ASX shares
• These were the best performing ASX 200 shares last week
• ASX 200 rises 0.6%, Mesoblast soars
• Why I’d buy today’s CSL share price over Mesoblast
• Wage growth is plummeting – here are 3 ASX dividend shares to start a second income

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 Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Crown Resorts 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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While most readers will have seen the Telstra Corporation Ltd (ASX: TLS) full year result for FY 2020 last week, not everyone will have had chance to listen to its analyst call.

In light of this, I thought I would highlight a few key questions and answers from the call that may help you with an investment decision.

What was discussed on the Telstra analyst call?

Telstra’s CEO, Andy Penn, was asked about NBN profitability. Once again, the chief executive voiced his concerns over NBN wholesale pricing.

He said: “In terms of NBN profitability, if you look at our reported ARPU on fixed broadband, I think it’s around $71, $75 or something like that, it’s probably slightly lower in relation to NBN as we are still partway through the migration to that, and we’ve got input costs there of around $45, $46 already that we pay to the NBN.”

“… the fundamental problem is, is that if your wholesale price is two thirds of the retail price, which essentially it is, that’s what makes it incredibly challenging, when as a retailer you’ve got to distribute and market the product, you’ve got to service it, you’ve got to manage billing, you’ve got to put in modems, deal with a lot of the complexities of the administration and the management and the service of NBN,” he added.

And while Telstra is aiming to improve the efficiency and profitability of its NBN service, Mr Penn stressed that “there’s a bigger structural problem there as well just given where wholesale prices are today, and where NBN’s ARPUs are intended to get to.”

The dividend.

There’s been a lot of talk about the sustainability of its dividend. This stems from Telstra’s dividend policy which aims to pay out 70% to 90% of accounting earnings. However, these earnings are generally lower than its cash earnings.

This has led to many analysts suggesting Telstra should change its focus to a free cash flow-based dividend policy.

Mr Penn commented: “On the point about dividend, there hasn’t been a change of policy, but there is a bit of a structural shift happening for us, which we expect to sustain over a longer period of time between our cash earnings and our accounting earnings, where our cash earnings will be quite a bit lower – sorry, our cash earnings will be higher than our accounting earnings, and our DN&A will be [higher] than our cash CapEx, and so that actually assists us in that regard.”

Competition.

This year a third major telco player was created with the merger of TPG Telecom Ltd (ASX: TPG) and Vodafone Australia. Telstra’s executives were quizzed on recent price increases and whether they expect them to hold if the competition doesn’t follow.

CFO, Vicki Brady, commented: “At this point we’re really pleased with how customers have reacted to that. As we’ve said before, we think this is an important point as 5G scales up, and we think it’s really important, and customers know it’s important, they really balance value, quality and price. And with our leadership position in 5G and our extending network differentiation, that’s what we’re really focused on and committed to, and our competitors will choose to react as they see fit.”

COVID-19 impact.

Telstra was also asked about the $600 million COVID-19 impact that it is facing over FY 2020 and FY 2021. Analysts were curious about whether any of these lost earnings would return.

Brady responded: “Just to talk a little bit more about the COVID impact. So if I focus on 2021 and our estimated $400 million, as you as you said, the roaming piece is uncertain, and it is $200 million of that impact in 2021. Obviously I think we all hope to get back to international travel at some stage, but it is unclear when that will be, and until that happens obviously international roaming continues to be impacted.”

“On the $100 million of productivity impact from the delays in our T22 productivity job reductions, that is timing. Clearly that’s something we will come back to in February 2021, and so that productivity is not a permanent change, that is just a timing change.”

“In terms of the customer related support packages and the impacts on our NAS professional services, again timing is uncertain, but we would certainly hope that they are temporary impacts, not permanent impacts,” she added.

Conclusion.

At the end of the call, Mr Penn spoke positively about the future.

He concluded: “We’ve met guidance, we’ve delivered our dividend. We’re providing guidance for FY21. There’s a few economic implications of COVID in the current situation for us, but we think we’re balancing making the right decisions of being responsible, supporting our customers and our people and delivering returns for our shareholders. But more importantly setting us up for growth as we come out of COVID with the investment in digital that we’ve made, but also the acceleration of the rollout to 5G.”

More reading

• Telstra and 2 more ASX dividend shares I like in August
• Brokers name 3 ASX shares to buy right now
• Brokers just downgraded the Telstra share price and these other ASX 200 stocks
• Is the Telstra dividend in danger? This leading broker thinks it’s safe
• ASX 200 drops 0.7%, Telstra falls 7.7%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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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I’m a big fan of buy and hold investing and firmly believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, every so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

On this occasion I’m going to change the formula slightly and look at a 5-year period. This is because there are a few shares which I want to speak about that haven’t actually been listed for a decade.

With that in mind, here’s how $20,000 investments in these ASX shares in 2015 would have fared:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price has been on fire over the last few years thanks largely to the insatiable appetite for its infant formula in the lucrative China market. A combination of strong sales in mainland China and among daigou shoppers in the ANZ market, has underpinned rapid earnings growth over the last five years. This has been reflected in the a2 Milk share price, which has provided lucky investors with an average annual return of 93.1% over the period. This means that if you had invested $20,000 into its shares in August 2015, your investment would be worth $537,000 today.

Appen Ltd (ASX: APX)

Incredibly, the a2 Milk share price isn’t the strongest performer in the list. Over the last five years the Appen share price has outperformed it with a staggering average annual return of 114.4%. The catalyst for this has been incredible rise of artificial intelligence (AI) and the subsequent demand for Appen’s AI and machine learning data preparation services from major technology companies such as Facebook, Microsoft, and Apple. The latter used Appen to help it develop its Siri assistant. Overall, a $20,000 investment in Appen’s shares five years ago would be worth a mouth-watering $906,000 today.

NEXTDC Ltd (ASX: NXT)

Thanks to the seismic shift to the cloud and the ever-increasing amount of data being consumed by consumers and businesses, NEXTDC’s data centres have experienced a surge in demand over the last few years. This has particularly been the case during the pandemic, with NEXTDC reporting several major contract wins. This has led to the company bringing forward capacity additions and new developments. Over the five years, NEXTDC shares have generated an average return of 35.5% per annum. This would have turned a $20,000 investment into a cool $91,500.

More reading

• Ryder share price rises 7% on strong full year report
• Brokers name 3 ASX shares to buy right now
• How investing in ASX shares could help you grow $10,000 into $100,000
• 3 ASX shares that could grow rapidly during the 2020s
• 4 quality ASX shares to buy in August

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of A2 Milk and 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.

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Some ASX shares are trading at crazy cheap prices in my opinion.

Some shares look cheap but perhaps they are rightly cheap because of the COVID-19 conditions they face. One example is Qantas Airways Limited (ASX: QAN). Who knows when international flights will resume? 

However, there are other ASX shares that seem like cheap buying opportunities to me:

Citadel Group Ltd (ASX: CGL)

Citadel is an ASX tech share that provides secure software to manage information. Some of its main clients operate in the sectors of defence, education and healthcare.

Indeed, it’s the healthcare that the ASX share is targeting with its recent acquisition of a UK healthcare software business called Wellbeing. The UK company provides software to help manage patient workflow.

Recurring revenue makes up around 70% of Wellbeing’s total revenue. The acquisition increases Citadel’s overall recurring revenue from 41% to 48% of total revenue.

The acquisition will increase the ‘health’ gross profit segment to around half of Citadel’s overall gross profit. Citadel’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin will rise from 22% to 26%.

Citadel’s revenue becomes more defensive and its profit margin will be higher. There’s a lot to like about this acquisition. The ASX share could steadily become a larger global software player.

It’s currently trading at just 12x FY22’s estimated earnings. I think that looks very cheap.

NAOS Small Cap Opportunities Company Ltd (ASX: NSC)

NAOS Small Cap Opportunities is a listed investment company (LIC) which targets ASX shares with market capitalisations between $100 million to $1 billion. These businesses are small enough that they have plenty of growth potential, but large enough that they aren’t too risky. 

Some of the current businesses that the LIC is invested in are MNF Group Ltd (ASX: MNF), BSA Limited (ASX: BSA), Over The Wire Holdings Ltd (ASX: OTW) and Eureka Group Holdings Ltd (ASX: EGH). There is promising growth potential with each of these ASX shares.

At 31 July 2020 it had pre-tax net tangible assets (NTA) per share of $0.69. The current NAOS Small Cap Opportunities share price is trading at a 25% discount to the NTA. That’s a big discount for a LIC.

In the meantime, investors who buy shares will seemingly get an annual grossed-up dividend yield of 11%.

Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is a real estate investment trust (REIT) that owns farmland. It actually owns some of the largest aggregations of berry and citrus farms in Australia. Those farms are leased to Australia’s biggest agricultural business, Costa Group Holdings Ltd (ASX: CGC). Vitalharvest has a profit share agreement with Costa for the farms that Costa rents.

The ASX share currently offers investors a cash yield of 6%. That’s not bad going considering Costa has had a rough time recently with the drought, crumbly berries and fruit flies at the citrus farms. If profitability were to return to 2019 levels then Vitalharvest may be able to pay a 7% yield.

Vitalharvest’s share price could rise over the coming months as investors learn more about the new manager’s plan to grow the business. It’s going to take a more active approach in finding acquisitions in Australia and New Zealand.

The REIT won’t just be targeting farms, it’s also going to look at other food property assets. It will look at buildings related to food processing, food storage and food logistics.

At 31 December 2019, Vitalharvest had a net asset value (NAV) per unit of $0.95. The current Vitalharvest share price is a 16% discount to that NAV.

I think a return to normal profitability for Costa, higher distributions, and acquisitions led by the new manager could see the share price rise closer to the NAV.

Foolish takeaway

I think each of these ASX shares look very cheap compared to either their future earnings or recent asset value. At the current prices I think Citadel could produce the strongest returns over the next few years due to its growth, higher margins and low earnings multiple. But both the Naos LIC and Vitalharvest are both trading at big, attractive discounts to their underlying value.

More reading

• 2 of the best ASX tech shares to buy and hold until 2025
• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• 2 ASX shares that are absurdly cheap right now
• 3 ASX LICs offering big dividend yields over 7%
• 3 top ASX dividend shares for income investors in August

Tristan Harrison owns shares of NAO SMLCAP FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Over The Wire Holdings Ltd. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Citadel Group Ltd and Over The Wire Holdings 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.

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If you’re looking to make some new additions to your portfolio this month, then I think the three ASX shares named below would be fantastic options.

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

Here’s why I would rate them five stars:

Altium Limited (ASX: ALU)

The first five-star stock to consider buying is Altium. It is a leading electronic design software provider which has exposure to the rapidly growing Internet of Things and artificial intelligence markets. These markets are underpinning the proliferation of electronic devices globally, which is driving strong demand for software subscriptions. It is also supporting the growth of its other businesses, such as workflow solution platform NEXUS and electronic parts search engine Octopart. Given the favourable industry tailwinds and its leadership position in the electronic design market, I believe Altium is well-placed to achieve its revenue target of US$500 million in FY 2025. This will be an increase of over 150% from its FY 2020 revenue.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is another ASX share that I would give five stars to. It is a donor management platform provider for the faith sector which has been growing at a very quick rate over the last few years. This was certainly the case in FY 2020, with the pandemic appearing to accelerate the shift to a cashless society and ultimately the adoption of its platform. In FY 2020 Pushpay reported a 33% increase in revenue to US$127.5 million. And thanks to its operating leverage, its earnings grew at an even quicker rate. More of the same is expected in FY 2021, with management forecasting the doubling of its operating earnings. Pleasingly, this is still only scratching at the surface of its overall market opportunity.

ResMed Inc. (ASX: RMD)

A final five-star stock to consider buying is ResMed. I’m a big fan of the sleep treatment focused medical device company due to its very positive long term outlook. This is due to its world class products, intuitive software solutions, and its rapidly growing ecosystem. At the end of FY 2020, ResMed’s digital health ecosystem had grown to over 12 million cloud connectable medical devices. This provides it with strong recurring revenues and an invaluable amount of high quality data. Combined, I believe ResMed is well-placed to win a greater slice of its target market over the next decade and beyond. This is a very big market and includes 936 million people with sleep apnoea globally, 380 million people who suffer from chronic obstructive pulmonary disease (COPD), and over 340 million people living with asthma.

More reading

• Get rich buying and holding these fantastic ASX shares
• 2 of the best ASX tech shares to buy and hold until 2025
• 4 quality ASX shares to buy in August
• 2 ASX shares that every investor should own
• Why I would buy ResMed and these ASX growth shares

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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX and ResMed Inc. 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 on form last week and recorded a solid gain. The benchmark index rose 2% over the period to end at 6126.2 points.

While a number of shares climbed higher, some recorded stronger than average gains. Here’s why these were the best performers on the ASX 200 last week:

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price was the best performer on the index with an impressive 17.6% gain. This follows the release of its full year results for FY 2020. For the 12 months, the wine company reported a 6% decline in net sales revenue to $2,649.5 million and a 22% decline in EBITS to $533.5 million. Treasury Wine Estates’ performance was impacted by challenging conditions in the US wine market and the COVID-19 pandemic. The latter impacted the sales of high margin luxury products. However, news that sales in China rebounded very strongly in June went down well with investors.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price wasn’t far behind with a 17% gain last week. The travel sector was on form last week, possibly due to Russia claiming to have a working COVID-19 vaccine. In addition to this, a week earlier Corporate Travel Management was the subject of a broker note out of Morgans. According to the note, its analysts upgraded its shares to an add rating with a $12.85 price target. This was largely on valuation grounds, but also on the belief that corporate travel markets might be stronger than expected.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was on form last week and recorded a 15% gain. As well as getting a boost for the above-mentioned reason, Flight Centre released an update on its operating cash outflows. According to the release, Flight Centre has surpassed its key target of a monthly net operating cash outflow of $65 million. A $53 million net operating cash outflow was recorded in July, comfortably below its target. This outflow reduces to $43 million if you include the $10 million per month net benefit flowing from the Job Keeper wage subsidy.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price was a positive performer and climbed 13% over the period. This may have been driven by bargain hunters after a sizeable decline a week earlier. One broker that certainly believes the NRW share price is in the buy zone is UBS. Earlier this month it put a buy rating and $3.15 price target on the contractor’s shares.

More reading

• ASX 200 rises 0.6%, Mesoblast soars
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These were the best performing ASX 200 shares last week appeared first on Motley Fool Australia.

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According to the most recent weekly economic report out of Westpac Banking Corp (ASX: WBC), its team continue to expect the cash rate to stay on hold at 0.25% for some time to come.

It looked at recent comments out of the Reserve Bank and feels confident that rate hikes are a long way off.

Westpac commented: “The Governor is entirely confident that the cash rate will not be increased for three years given the requirement for the Board to be confident that inflation would be sustainably within the 2–3 % band.”

This means income investors are likely to be contending with low interest rates for some time to come.

But don’t worry, because the ASX dividend shares listed below could help you earn an income. Here’s why I would buy them:

Dicker Data Ltd (ASX: DDR)

I think Dicker Data is well-positioned to continue growing its dividend for the foreseeable future. It is a wholesale distributor of computer hardware and software across the ANZ region. While countless companies are struggling in 2020, Dicker Data has been delivering record sales and profits. During the first half of FY 2020, the company reported half year revenue above $1 billion for the first time and a 30.4% lift in net profit before tax to $42 million. As a result, the company is aiming to lift its full year dividend by over 30% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.

Wesfarmers Ltd (ASX: WES)

Another company which I think is well-placed to continue growing its dividend over the coming years is Wesfarmers. This is due to the quality of its portfolio and particularly its Bunnings business. The hardware giant is the conglomerate’s biggest contributor to earnings and has been performing very strongly during the pandemic. And thanks to government stimulus which is supporting the home improvement market, I expect this positive form to continue in FY 2021. Overall, I expect this to lead to Wesfarmers paying shareholders a fully franked dividend of $1.46 per share in FY 2021. Based on the current Wesfarmers share price, this equates to a fully franked 3.1% dividend yield.

More reading

• 2 ASX dividend shares with yields over 6% today
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• If an ASX share announces a demerger, here’s why you should listen
• Is BetaShares Australia 200 ETF the best ASX ETF?
• As CBA slashes its dividend, the brutal reality is bank shares have been dogs for 5 years, with more pain ahead

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Rates on hold until 2023? Buy these ASX dividend shares appeared first on Motley Fool Australia.

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