Author: therawinformant

As I mentioned here yesterday, at present the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account currently provides savers with a base interest rate of just 0.05%.

This is broadly in line with what you’ll find with other savings accounts. And unfortunately, I expect rates to stay at these ultra low levels for some time to come.

In light of this, if you’re looking to earn an income, then you might want to consider investing your funds into some of the high quality dividend shares on the ASX.

Three top ASX dividend shares I would buy are listed below:

Coles Group Ltd (ASX: COL)

I think this supermarket operator would be a great option for income investors. I think Coles is well-positioned to grow its dividend at consistently solid rate over the next decade. This is because of its positive growth outlook thanks to food inflation, its refreshed strategy, and expansion opportunities. Based on the current Coles share price, I estimate that it offers a fully franked 3.9% FY 2021 dividend.

Rio Tinto Limited (ASX: RIO)

Another dividend share that I think income investors ought to consider buying is this mining giant. Because of the high prices that iron ore is commanding at present, I believe Rio Tinto is well-placed to deliver high levels of free cash flow this year and next. And given the strength of its balance sheet, I suspect the majority of this free cash flow will be returned shareholders. In light of this, I estimate that Rio Tinto shares currently offer a forward fully franked dividend yield of at least 5%.  

Rural Funds Group (ASX: RFF)

A final dividend share that I would buy right now for income is Rural Funds. It is a leading agriculture-focused property company with a collection of quality assets throughout Australia. The main attraction to Rural Funds for me is its long term tenancies. These have been designed to allow the company to consistently increase its distribution at a solid rate each year. For example, in FY 2020 it plans to pay 10.85 cents per share and in FY 2021 it intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, the latter equates to a 5.7% yield.

More reading

• 2 ASX dividend shares with yields over 6%
• Here’s how to play China’s V-shaped growth story
• What’s going on with the Coles share price?
• Why Adbri, BlueScope, Netwealth, & Rio Tinto shares are tumbling lower
• Risk to supermarkets is rising but is Woolworths share price still a buy?

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. 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.

The post 3 top ASX dividend shares I would buy next week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31HEPu5

The unprecedented consequences of the coronavirus pandemic have taken a heavy toll on the global economy. As a result, the pandemic has forced individuals and society to adapt in order to function and endure. Despite the widespread chaos for most businesses, some notable ASX COVID-19 success stories have emerged.

Here are 3 companies that have come into their own as a result of the coronavirus lockdown.

Temple & Webster Group Ltd (ASX:TPW)

Temple & Webster is Australia’s largest online retailer of furniture and homewares, boasting more than 150,000 products for sale. The company has been a market darling during the coronavirus lockdown period as shoppers switch to online retail avenues.

Temple & Webster acknowledge this strong demand in a recent trading update, which highlighted a 130% surge in gross sales to 28 June on a year-on-year basis.  In mid-June, the online retailer reported a 668% increase in year-to-date EBITDA of $7.1 million. Additionally, Temple & Webster reported a 68% increase in year-to-date revenue of $151.7 million.

Despite being debt-free and boasting around $30 million in cash, Temple & Webster recently completed a $40 million share placement. The company noted that this will allow for further investments in growth and will improve its technology, product and service offerings.

Marley Spoon AG (ASX: MMM)

Another company to capitalize on the demand for online and convenience services has been Marley Spoon. The subscription-based meal-kit provider saw an unprecedented surge in demand during the pandemic. Marley spoon reported that 7.5 million meals were delivered in the first quarter of 2020.

This surge in demand resulted in Marley Spoon recording its first-ever positive cash flow and accelerating future growth plans. This has been reflected in the company’s share price, which has surged more than 600%  since mid-March. In response, the company completed a $16.6 million capital raising to strengthen its balance sheet and fund continued global expansion.

Kogan.com Ltd (ASX: KGN)

Kogan.com is fast becoming a household name following the coronavirus pandemic. During the lockdown period, Kogan’s active customer base grew to over 2 million, with 126,000 additional customers as of 31 May.

Kogan reported a 100% increase in gross sales across April and May thanks to consumers opting for the convenience of online shopping. The online retailer also reported a 130% surge in gross profit for the same period.

The demand has rippled into the Kogan share price which has surged more than 300% from late March to trade near all-time highs. The online retailer recently completed a $115 million capital raising in order to accelerate future acquisition opportunities.

Foolish takeaway

The trend among these ASX COVID-19 success stories is the benefits they have all experienced from the change in consumer behaviour and their continued investment in online exposure.

Although all 3 companies have rallied tremendously since March, I can’t advocate buying shares in any at the moment.

Instead, I think a prudent strategy for investors would be to compile a watchlist of similar companies that could thrive in 2020 and beyond.

More reading

• How I’d build a $100,000 portfolio with ASX growth shares
• 10 more top broker ASX share picks for FY21
• Why Afterpay and this ASX share just hit record highs
• Temple & Webster share price at an all-time high after capital raise
• The Marley Spoon share price is up 588% in 2020. Will it keep delivering?

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended 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.

The post Here are 3 ASX COVID-19 success stories appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31EPTbr

The S&P/ASX 200 Index (ASX: XJO) was back on form last week and charged notably higher. The benchmark index climbed a total of 153.8 points or 2.6% to end the period at 6057.9 points.

A good number of shares climbed higher with the market. However, a few stood out with particularly strong gains. Here’s why these were the best performers on the ASX 200 last week:

The Afterpay Ltd (ASX: APT) share price was the best performer on the ASX 200 last week with an 18.4% gain. Investors were buying the payments company’s shares thanks partly to a broker note out of Citi. Although its analysts have retained their neutral rating, they have more than doubled their price target to $64.25 from $27.10. The broker made the move after upgrading its earnings estimates materially. This was in response to Afterpay’s impressive growth in the UK and United States and its belief that it will benefit from the acceleration in the shift to online shopping.

The Nearmap Ltd (ASX: NEA) share price wasn’t far behind with a 17.5% gain. A positive broker note released last week could also have played a role in this strong gain. A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted their price target to $2.47. Macquarie appears impressed with the aerial imagery and location data technology company’s performance during the pandemic. Nearmap recently confirmed that it is on track to achieve its FY 2020 guidance.

The NEXTDC Ltd (ASX: NXT) share price was a strong performer and jumped 14.6% last week. Investors were buying the data centre operator’s shares after it announced major new contract wins in New South Wales. According to the release, NEXTDC’s contracted commitments at its New South Wales data centre facilities have now increased by approximately 4MW, to more than 36MW. And including expansion options, its data centres in the state are now approaching a sizeable 60MW. This is more than the total capacity of its S1 and S2 data centres.

The Domain Holdings Australia Ltd (ASX: DHG) share price was on form and surged 14.3% higher last week. This was despite there being no news out of the property listings company last week. The Domain share price has now more than doubled in value since dropping to a 52-week low of $1.68 in March.

More reading

• How I’d build a $100,000 portfolio with ASX growth shares
• These were the worst performing ASX 200 shares last week
• 2 dirt-cheap ASX shares to buy next week
• ASX 200 closes 0.4% higher, Cochlear share price up 6%
• Here are the 10 shares that move global markets

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from Motley Fool Australia https://ift.tt/3eZtVDV

Building a $100,000 investment portfolio with only ASX growth shares is not for the faint of heart. Growth shares can be a lucrative ground to hunt for oversized ASX returns. However, growth shares can also be volatile and often have a tendency to underperform during market sell-offs. This can make them emotionally taxing investments to hold if things go south on the markets.

But if you can stomach this volatility, then building a $100,000 portfolio of growth shares could be the right path for you. So here’s how I would build such a growth-focused portfolio:

Spend $25,000 on Openpay Group Ltd (ASX: OPY) shares

Openpay is one of the ‘mid-tier’ players in the red-hot buy now, pay later (BNPL) space. Its shares have been on an absolute tear in recent months, rising more than 300% over the past 3 months alone. Even with the current Openpay share price, I still think there could be an opportunity here for a long-term investment. Unlike its bigger rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), Openpay focuses more on life’s ‘bigger’ purchases, such as medical bills, hardware, bedding and dental. I think this is a relatively untapped niche, and if Openpay can keep its momentum going, I’m optimistic about the prospect of a decent, long-term payoff from this company.

Spend $25,000 on Polynovo Ltd (ASX: PNV) shares

Polynovo is one of the most exciting, up-and-coming ASX healthcare shares in my opinion. Its flagship ‘Novosorb’ product is a cutting-edge skin treatment for severe burns, which has already received rave reviews from various corners of the medical profession. Polynovo is also working to expand into the hernia and breast implant markets, which (if the company can pull it off) represent significant future growth opportunities. The Polynovo share price has yet to re-touch its February high, which I think could mean there is plenty of near and long-term growth left on this runway.

Add $25,000 of Marley Spoon AG (ASX: MMM) shares

Marley Spoon is a meal delivery service that works on a subscription basis. It targets consumers who care about quality, nutritious meals but lack either the time or inspiration to shop for the ingredients themselves. The company provides a continually updated menu and delivers the precise ingredients enabling customers to cook their chosen meals at home. The trend towards time-effective, healthy eating was already on the rise prior to COVID-19.

Following the onset of the pandemic and its associated lockdowns, however, the move towards these types of services has accelerated even further. As a result, the Marley Spoon share price has been on fire in recent months, climbing more than 500% year to date. This was fuelled by revelations the company’s services were selling like hot cakes during lockdowns, with sales up 46% in the first quarter of 2020. If even some of this recent increase in the demand for convenient, cook-at-home meals continues longer term, I think Marley Spoon has a very bright future.

Finish with a $25,000 investment in ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO)

This exchange-traded fund (ETF) holds a basket of global companies that are all involved in robotics and automation. I feel this is an area we can probably all agree is ripe for sizable future growth. In my opinion, the trend towards greater automation is one of the most significant in the commercial world. Afterall, every company wants to become more efficient with their capital. With this investment, you are buying into companies like Daifuku Co, NVIDIA, ServiceNow, and iRobot (the robotic vacuum cleaner company, not the Will Smith movie!). I believe these are all exciting and disruptive growth organisations. This ETFs management fee isn’t exactly cheap at 0.69% per annum. But I think it’s worth it considering the global exposure this ETF can provide for us ASX investors.

More reading

• Here are 3 ASX COVID-19 success stories
• These were the best performing ASX 200 shares last week
• What’s going on with the Coles share price?
• Why you can expect further gains for ASX shares this quarter
• Will the Afterpay share price break $100 in 2020?

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and ZIPCOLTD FPO. 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.

The post How I’d build a $100,000 portfolio with ASX growth shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38xQ0qM

Strong gains in the tech sector helped drive the S&P/ASX 200 Index (ASX: XJO) notably higher last week. The benchmark index rose 153.8 points or 2.6% to end the period at 6057.9 points.

Unfortunately, not all shares were able to follow the market higher last week. Here’s why these were the worst performers on the ASX 200 over the period:

The Adbri Ltd (ASX: ABC) share price was the worst performer on the ASX 200 last week with a 26.1% decline. Investors sold off the building materials company’s shares on Friday after Alcoa of Australia decided not to renew its current lime supply contract when it expires at the end of June 2021. This means Alcoa is ending its almost 50-year relationship with Adbri, which was formerly known as Adelaide Brighton. And while this contract currently constitutes approximately $70 million or 4.6% of its annual revenue, investors appear concerned that others may also switch to cheaper imported products.

The Perenti Global Ltd (ASX: PRN) share price was some way behind with a disappointing 8% decline. This latest decline means the engineering company’s shares are now down 22% over the last 30 days. Investors have been selling the mining services company’s shares over the last few weeks after the release of a business update in June. Perenti advised that it expects FY 2020 underlying profit after tax to be $106 million to $110 million. This was a 4% to 8% reduction on its guidance that was withdrawn in March.

The Southern Cross Media Group Ltd (ASX: SXL) share price started the new financial year as it finished the last and fell 7.9%. This was despite there being no news out of the media company. The Southern Cross Media share price was the worst performer on the ASX 200 in the last financial year with a whopping 80.7% decline. Concerns that the coronavirus crisis could impact advertising revenues materially and a highly dilutive capital raising have weighed on its shares.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price was out of form and dropped 6.2% lower last week. This decline appears to have been driven by an institutional investor selling down its stake. On Thursday Bennelong Australian Equity Partners offloaded the equivalent of a 4.4% stake in Reliance Worldwide. It went from an interest of 123,730,477 shares down to 81,524,354 shares.

More reading

• 2 dirt-cheap ASX shares to buy next week
• ASX 200 closes 0.4% higher, Cochlear share price up 6%
• Here are the 10 shares that move global markets
• Where to invest $5,000 into ASX 200 shares immediately
• The latest ASX stocks to be downgraded by top brokers 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 Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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 worst performing ASX 200 shares last week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38oNHpM

I’m a very big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, 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.

This time around I have picked out the three ASX shares that are listed below:

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price has been a market beater over the last decade with an average annual return of 11.8%. This has been driven by Cleanaway delivering solid earnings growth over the period and growing into a real force in the waste management industry. This has particularly been the case during the last few years following the successful acquisitions of Toxfree and SKM Recycling. If you had invested $20,000 into its shares in 2010, it would be worth a cool $61,000 today.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price has been a particularly positive performer over the last 10 years. During this time the severe skin disorders-focused biopharmaceutical company’s shares have generated an average total return of 26.9% per annum. The majority of these gains have come in the last few years following the successful development of its lead compound, SCENESSE. This is a drug which is currently treating erythropoietic protoporphyria and could soon be expanded to treat vitiligo. A $20,000 investment into Clinuvel’s shares 10 years ago would be worth a sizeable $217,000 today.

CSL Limited (ASX: CSL)

The CSL share price has certainly not disappointed over the last 10 years. Thanks largely to its high level of investment in research and development, CSL now has an extremely lucrative portfolio of therapies. It also has a growing vaccine business following its acquisition of the Novartis global influenza vaccine segment. Combined, they have underpinned consistently strong sales and earnings growth. This has resulted in CSL’s shares providing investors with an average return of 25.1% per annum over the last decade. Which means that $20,000 invested in its shares in 2010 would now be worth $188,000 today.

More reading

• Is the ANZ, APA or CSL share price a strong buy?
• Looking to start a share portfolio? Here are 3 quality ASX shares to begin with
• Is the CSL share price fairly valued?
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• Why I would buy CSL and these ASX blue chip shares in FY 2021

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

The post How to turn $20,000 into over $200,000 in 10 years with ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ipEzpw

The rising gold price over recent months may mean that many investors see it as a sound means to make a million. After all, with the world economy’s outlook being uncertain, gold’s popularity could continue to rise among increasingly risk-averse investors.

However, over the long run, dirt-cheap shares could offer higher returns than the precious metal. The stock market’s track record of recovery means that buying undervalued stocks may be a means of obtaining high capital returns in the coming years.

As such, now could be the right time to build a diverse portfolio of bargain stocks instead of purchasing gold.

Gold’s prospects

Gold’s strong performance since the start of the year means that it may be increasingly seen as a means to make a million by investors. However, its recent price rise may not continue uninterrupted over the long run.

The precious metal has historically been highly popular during periods of low interest rates, when income-producing assets have less appeal on a relative basis. Furthermore, gold is seen as a store of wealth by many investors, which is a key reason why its price has spiked in recent months in response to a downgrade in the global economy’s growth forecasts.

However, over the long run the world economy’s performance is likely to improve. This could lift investor sentiment, and may encourage investors to focus their capital on riskier assets such as equities. Eventual rises in interest rates may also reduce demand for gold, which could mean that its capacity to deliver further strong price rises in the coming years is somewhat limited.

Stock market valuations

While the price of gold has risen close to record highs so far in 2020, investors aiming to make a million from the stock market have been highly disappointed. However, the wide margins of safety available across many sectors of the stock market could provide an opportunity to generate high returns in the long run.

The stock market has an excellent track record of recovering from its various downturns to produce new record highs. Sometimes this can take a number of years. However, as the economic outlook gradually improves, investors are likely to become more bullish about the prospects for riskier assets such as equities. This could mean that the stock market offers substantial long-term growth potential from its current price level, with many of its members appearing to offer good value for money after their recent declines.

Building a portfolio

As such, buying a diverse range of stocks could be a sound means of generating high returns over the long run. They may not outperform lower-risk assets such as gold in the short run, but may prove to be a more likely means to make a million over the coming years as the economic outlook improves and investor confidence is restored.

More reading

• These were the worst performing ASX 200 shares last week
• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Is the ANZ, APA or CSL share price a strong buy?
• 10 more top broker ASX share picks for FY21
• Looking to start a share portfolio? Here are 3 quality ASX shares to begin with

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.

The post Forget gold! I’d buy dirt-cheap stocks today to make a million appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2NT043V

Is the Australia and New Zealand Banking Group (ASX: ANZ), APA Group (ASX: APA) or CSL Limited (ASX: CSL) share price a strong buy?

The ASX has plenty of quality blue chip shares. However, I prefer to either buy ASX shares that I think will provide better growth than the market or better dividends. If you’re not going for either of those goals then you may as well just invest in BetaShares Australia 200 ETF (ASX: A200) for the ultra-low-cost and ultra-low effort.

We need to be selective with the prices that we pay for individual shares. The way you produce better returns is by buying at the right time. Either earlier on with in share’s growth journey or during a dip.

The COVID-19 selloff was definitely a bad time for many ASX shares, with some falling by over 50%. Some shares have recovered, whereas others haven’t. I’m going to look at whether the following ASX blue chips are strong buys:

CSL 

The CSL share price is still down more than 10% from its pre-coronavirus high in February 2020. That’s despite the company reaffirming its profit guidance for FY20 of between US$2.11 billion to US$2.17 billion.

The healthcare giant is involved in trying to help patients with COVID-19. The company warned that there may be modest delays with its capital projects and clinical trials. But that doesn’t put me off. 

I continue to be impressed by CSL’s commitment to research and development. It’s the creation of new and improved products that will continue to drive earnings higher as CSL helps solve healthcare problems around the world.

The company has been one of the best ASX share performers over the past two decades. I don’t expect the same growth of the CSL share price, but it could still provide good compounding results over the long-term. I wouldn’t call it a strong buy though.

ANZ

The ANZ share price is still down 30% from its pre-COVID-19 price in February 2020. Sadly, ANZ hasn’t performed like the CSL share price has in 2020 or over the longer-term.

The big ASX bank is facing a looming date in a few months where a lot of government support like the jobkeeper package is likely to end, or at least heavily reduced.

COVID-19 is expected to hurt ANZ’s earnings this year. That’s why ANZ included a credit provision of around $1 billion for impacts that ANZ expects to face from the pandemic.

I think it was a wise decision by the board to defer the dividend decision. ANZ’s leadership didn’t know how bad things would be, or that things wouldn’t turn out as badly as feared. 

There is still a lot of uncertainty. COVID-19 is spreading in Victoria and there is a danger that it could return to other states. I don’t think the ANZ share price is an obvious buy right now.  

APA

The current APA share price is almost exactly the same level as the pre-COVID-19 price. Just looking at the speed of the recovery, APA has gotten back faster than the CSL share price.

With its huge gas pipeline network around Australia, APA is well positioned to keep generating reliable cashflow whether COVID-19 spreads across the country again or not.

The infrastructure giant also has other energy assets which provide diversified earnings for shareholders.

APA is actually one of the best dividend shares on the ASX in my opinion. At least in terms of its consistent growth. The distribution has increased every year for a decade and a half. I don’t think APA is a strong buy for total returns today, but I think it’s a strong buy if you want reliable annual income.

The current FY20 distribution yield is 4.4% based on the 50 cents per unit payout.

Foolish takeaway

The CSL share price has produced strong returns in the past. I don’t think it’s a fantastic buy today, but it would be my choice of the three for long-term capital growth. APA is the one that attracts me the most for income.

More reading

• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Looking to start a share portfolio? Here are 3 quality ASX shares to begin with
• Is the CSL share price fairly valued?
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• Why I would buy CSL and these ASX blue chip shares in FY 2021

Tristan Harrison 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 APA Group. 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 Is the ANZ, APA or CSL share price a strong buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38rHEAS

We’re now into FY21. I think it’s a good time to be thinking about what ASX shares will generate the best returns over the next 12 months. Broker Bell Potter from parent company Bell Financial Group Ltd (ASX: BFG) has released a list of shares that it thinks will do well this financial year.

I’ve already written about 10 of those ideas here. In this article I’m going to cover the other 10 that caught my eye:

Retail 

Share 1: Temple & Webster Group Ltd (ASX: TPW)

Why it’s a pick: As Australia’s largest online-only furniture and homewares retailer, it could be one of the biggest beneficiaries from the shift to online shopping due to COVID-19. Bell Potter likes the capital light nature of the business as well as the growth initiatives the company is making.

My view: The Temple & Webster share price has been a very strong performer since March 2020. But I think the ASX share still has an exciting future ahead with lower costs and growing brand awareness among potential customers. I’d be a happy long-term holder if I owned shares. 

Share 2: City Chic Collective Ltd (ASX: CCX)

Why it’s a pick: City Chic sells around two thirds of its plus-size women’s products online. It was, and is, well positioned to handle the current COVID-19 retail environment. With minimal debt, low costs and solid trading, City Chic is one of Bell Potter’s top picks.

My view: I think City Chic is one of the most promising small caps on the ASX. I really like the growing diversification of earnings. City Chic is steadily turning into a sizeable international player in the plus-size space. However, it has been a strong performer in recent months, I’d only start with a small parcel at the current City Chic share price.

Industrials 

Share 3: Corporate Travel Management Ltd (ASX: CTD)

Why it’s a pick: Bell Potter still likes Corporate Travel Management despite the COVID-19 problems. The broker thinks the ASX share can increase its market share and generate profit even from a low volume. 

My view: I think travel will make a comeback over the next couple of years, but I’m not sure personally about a full recovery for the corporate travel space. Online video conference calling may be a permanent shift for many. So, I’m not sure if the Corporate Travel Management share price is a buy, when there are other travel shares when may be better buys.

Share 4: Emeco Holdings Limited (ASX: EHL)

Why it’s a pick: The broker likes this ASX share which is a leading provider of rental earthmoving equipment and maintenance services. Mining has remained resilient in the face of COVID-19, which is reflected in the company’s guidance. Bell Potter estimated Emeco is trading at under 9x FY21’s earnings.

My view: Mining related businesses are not my strong point. It does seem cheap if the FY21 estimate is close to reality, it’s even cheaper with the Emeco share price falling on Friday. But mining can be unpredictable. 

Share 5: Johns Lyng Group Ltd (ASX: JLG)

Why it’s a pick: This ASX share is an integrated building services group. Bell Potter expects a strong FY20 result with insurance panel wins, increased volumes and acquisitions. It should have a solid FY21 because it provides essential services (which are unaffected by COVID-19 restrictions) and it has a full order book.

My view: I don’t know enough the company or the industry to know how much (longer-term) growth potential the company has. But this company does seem to have a good combination of defensive earnings and growth.

Resources

Share 6: Nickel Mines Ltd (ASX: NIC)

Why it’s a pick: The nickel miner has a strong balance sheet, it’s cheap compared to its peers and the broker likes the ASX share for its pure nickel exposure as that’s one of Bell Potter’s preferred base metals.

My view: I’m not a big fan of investing in commodity shares because they don’t have much control over the commodity price, which also means there isn’t a lot of control of profit year to year. The Nickel Mines share price has recovered back to the level where it was at 21 February 2020, so it’s not a beaten-up opportunity any more. 

Share 7: Regis Resources Limited (ASX: RRL)

Why it’s a pick: Regis Resources is a gold miner with an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 50% – this is at least as good as its peers, if not better. Bell Potter also likes the dividend paid by the gold miner.

My view: I don’t think you can look at gold miners as consistent compound growers because of how volatile the gold price is. The Regis Resources share price is close to its 2020 high, so I wouldn’t be too eager to load up on shares right now unless the gold price keeps rising.

Healthcare

Share 8: Volpara Health Technologies Ltd (ASX: VHT)

Why it’s a pick: This ASX share is helping detect breast cancer with its screening technology. Bell Potter likes the software as a service (SaaS) model. The broker also likes that the company now has a suite of products to improve the offering to clients.

My view: Volpara is one of the promising small cap healthcare ASX shares. I like that it’s rapidly growing revenue and market share. There’s a good chance it can increase its revenue per user with its growing product base.

Emerging companies

Share 9: Pointsbet Holdings Ltd (ASX: PBH)

Why it’s a pick: The resumption of the NRL and AFL should be beneficial for the gambling business. There’s also the prospect of US sports like the NBA, MLB and NHL coming back this month too.

My view: The Pointsbet share price has been a strong performer since the March 2020 low of the COVID-19 selloff. Just on Friday the company announced a deal with a US MLB team, the first of its kind. I think it could be one to watch if it keeps winning deals with in the US sport betting sector.

Professional services

Share 10: IPH Ltd (ASX: IPH)

Why it’s a pick: The intellectual property (IP) ASX share is a pick because it has proven to be resilient through previous economic downturns, it makes good cashflow, it has growing exposure to the high growth Asian IP market, there are benefits to the recent acquisitions and it’s expanding into other IP markets.

My view: There are plenty of positives to IPH. It seems like the type of business that could keep performing well through FY21 whether the market improves or worsens from here. It’s also a decent dividend share. At the IPH current price it offers a grossed-up dividend yield of 4.9%.

More reading

• ASX 200 closes 0.4% higher, Cochlear share price up 6%
• Why Lovisa, PointsBet, Transurban, & WiseTech shares are racing higher
• PointsBet share price zooms 5% higher on Detroit Tigers deal
• Why Afterpay and this ASX share just hit record highs
• Temple & Webster share price at an all-time high after capital raise

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd, Temple & Webster Group Ltd, and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Pointsbet Holdings Ltd, Temple & Webster Group Ltd, and VOLPARA FPO NZ. 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 10 more top broker ASX share picks for FY21 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38q8Pfd