Stock Pick

Author: therawinformant

  • Why I think these ASX dividend shares are strong buys

    Man poses with muscular shadow to show big share growth

    With interest rates at ultra-low levels and unlikely to improve for some time to come, I continue to believe that the share market is the best place to earn a passive income.

    But which dividend shares should you buy? Listed below are two top ASX dividend shares which I think are high quality options right now. Here’s why I like them:

    Dicker Data Ltd (ASX: DDR)

    Dicker Data is a wholesale distributor of computer hardware and software. It has been an exceptionally strong performer in 2020 despite the pandemic. In fact, this week Dicker Data released a half year update which revealed unaudited first half revenue of $1 billion and net profit before tax of $40 million. This represents an 18.3% and 25% increase, respectively, over the prior corresponding period.

    In light of this, I’m confident it is in a position to deliver on its plan to increase its dividend by 31% this year. This will bring it to 35.5 cents per share, which based on the current Dicker Data share price, equates to a fully franked 4.6% dividend yield.

    Telstra Corporation Ltd (ASX: TLS)

    Another dividend share that I think income investors ought to buy is Telstra. After several years of struggles because of the decline of its fixed line business due to the NBN rollout, I believe a return to growth is finally on the horizon. This is thanks to its sizeable cost cutting, the arrival of 5G internet, and of course the easing of the NBN headwinds.

    In respect to the latter, peak pain from the NBN rollout is expected to hit in the near future. After which, the pressure on its earnings will ease and growth could be on the agenda once again. Positively, until then I’m confident that its free cash flows are more than enough to sustain its 16 cents per share dividend. Based on the current Telstra share price, this equates to an attractive fully franked 5% dividend yield.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

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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 Dicker Data Limited 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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  • Tesla could hit $2,000 in best-case scenario, says analyst

    Tesla could hit $2,000 in best-case scenario, says analystOn Thursday, Wedbush analyst Dan Ives raised his bull case price target for shares of Tesla to $2,000 from $1,500. While his base case was lifted from $1,000 to $1,250 (a street high), he maintains a neutral rating on the stock. The Final Round panel discusses the bullish call, and the road ahead for the electric automaker.

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  • INSIGHT-How Moderna execs are cashing in on COVID-19 vaccine stock speculation

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  • 5 things to watch on the ASX 200 on Friday

    ASX share

    On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed through the 6,000-point level. The benchmark index jumped 1.65% to 6,032.7 points.

    Will the market be able to build on this on Friday? Here are five things to watch

    ASX 200 expected to rise again.

    The ASX 200 looks set to end the week on a high on Friday. According to the latest SPI futures, the benchmark index is expected to rise 36 points or 0.6% at the open. This follows a solid night of trade on Wall Street which saw the Dow Jones rise 0.35%, the S&P 500 climb 0.45%, and the Nasdaq push 0.5% higher. U.S. equities pushed higher after a better than expected U.S. jobs report.

    Oil prices push higher.

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could end the week on a high after oil prices continued their recovery. According to Bloomberg, the WTI crude oil price is up 1.2% to US$40.30 a barrel and the Brent crude oil price is 1.7% higher to US$42.75 a barrel. Solid U.S. economic data drove oil prices higher overnight.

    Gold price recovers.

    Gold miners including Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price has risen 0.4% to US$1,787.70 an ounce despite the strong economic data.

    Magellan rated neutral.

    The Magellan Financial Group Ltd (ASX: MFG) share price could be overvalued according to one leading broker. A note out of Goldman Sachs reveals that its analysts have retained their neutral rating and $51.69 price target on the fund manager’s shares. Goldman notes that Magellan’s shares are currently trading at 23.5x FY 2021 earnings. This is ahead of its five-year average of 20x. Magellan share price closed at $61.68 on Thursday.

    Aristocrat and Reliance block sales.

    Aristocrat Leisure Limited (ASX: ALL) and Reliance Worldwide Corporation Ltd (ASX: RWC) shares will be on watch on Friday after reports of large block trades. According to the AFR, someone was selling $127 million worth of Aristocrat shares yesterday afternoon. After which, an investor offloaded the equivalent of a 4.4% stake in Reliance Worldwide

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

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    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.

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  • 8 Best Vanguard ETFs for Retirees

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  • Why Afterpay and this ASX share just hit record highs

    beat the share market

    With the S&P/ASX 200 Index (ASX: XJO) surging above the 6,000 points level again, a number of shares have been pushing higher in recent days.

    Some have pushed so hard they are now trading at record highs. Two which have achieved this feat are listed below. Here’s why they are on form right now:

    Afterpay Ltd (ASX: APT)

    The Afterpay share price continued its remarkable run and hit a record high of $68.62 on Thursday. This latest gain means that the payments company’s shares are now up an incredible 850% from their March low. This strong gain has been driven by its very positive performance during the pandemic, strong customer growth in the United States and the United Kingdom, international expansion options, and positive broker notes.

    The latter appears to have been the catalyst for taking its shares to a new high yesterday. As I mentioned here, analysts at Citi retained their neutral rating but more than doubled their price target on Afterpay’s shares to $64.25. Citi lifted its price target after upgrading its earnings estimates to reflect strong customer growth and the acceleration of the shift to online shopping.

    Temple & Webster Group Ltd (ASX: TPW)

    The Temple & Webster share price rocketed 18% higher to a record high of $7.44 yesterday. This means the online homewares retailer’s shares are now up 435% from their March low. Investors were fighting to get hold of shares on Thursday after it successfully completed a $40 million share placement to institutional investors. These funds will be used to make further investments in its growth strategy, while also improving its technology, product, and service offerings.

    In addition to this, it released a business update which revealed that its sales were strong again in June. Monthly gross sales to 28 June were up 130% on the prior corresponding period. This appears to have put the company in a position to deliver a bumper profit result in FY 2020.

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    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

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    *Extreme Opportunities returns as of June 5th 2020

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    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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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  • COVID-19 vaccines to enter late-stage trial by end of July, Fauci says

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  • Wall Street shifts bets to big pharma as COVID-19 vaccine race progresses

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  • If You Own Oracle (ORCL) Stock, Should You Sell It Now?

    If You Own Oracle (ORCL) Stock, Should You Sell It Now?If you are looking for the best ideas for your portfolio you may want to consider some of Ensemble Capital's top stock picks. Ensemble Capital, an investment management firm, is bearish on Oracle Corp (NYSE:ORCL) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment […]

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  • Boeing Quietly Pulls Plug on the 747, Closing Era of Jumbo Jets

    Boeing Quietly Pulls Plug on the 747, Closing Era of Jumbo Jets(Bloomberg) — Boeing Co. hasn’t told employees, but the company is pulling the plug on its hulking 747 jumbo jet, ending a half-century run for the twin-aisle pioneer.The last 747-8 will roll out of a Seattle-area factory in about two years, a decision that hasn’t been reported but can be teased out from subtle wording changes in financial statements, people familiar with the matter said.It’s a moment that aviation enthusiasts long have dreaded, signaling the end of the double-decker, four-engine leviathans that shrank the world. Airbus SE is already preparing to build the last A380 jumbo, after the final convoy of fuselage segments rumbled to its Toulouse, France, plant last month.Yet for all their popularity with travelers, the final version of the 747 and Europe’s superjumbo never caught on commercially as airlines turned to twin-engine aircraft for long-range flights. While Boeing’s hump-nosed freighters will live on, the fast-disappearing A380 risks going down as an epic dud.The grand jetliners also face another indignity: The Covid-19 pandemic threatens to leave their manufacturers scrounging to find buyers for the last jumbos built.“As it turned out, the number of routes for which you need an ultralarge aircraft are incredibly few,” said Sash Tusa, an analyst with Agency Partners.Boeing’s “Queen of the Skies” debuted in 1970, an audacious bet that transformed travel but almost bankrupted the company. Passenger versions boasted a spiral staircase to a luxurious upstairs lounge. Freighter models featured a hinged nose that flipped open to load everything from cars to oil-drilling gear. The 747 went on to rack up 1,571 orders over the decades — second among wide-body jets only to Boeing’s 777.The millennial-era A380 could haul as many as 853 travelers and reflected Europe’s lofty aerospace ambition. But by the time it arrived in 2007, airlines were already tilting to smaller planes that burned less fuel.Boeing correctly anticipated the trend with the twin-engine 777 and the 787 Dreamliner. With prodding from Joe Sutter, a famed engineer who’d led the original 747 program, the planemaker decided to develop a relatively inexpensive upgrade of the four-engine plane to steal sales from the A380.The strategy would have been successful, had the 747-8 not been bedeviled by early mismanagement, blowing its budget and deadlines, said Richard Aboulafia, an analyst with Teal Group.The Chicago-based company has lost about $40 million for each 747 since 2016, when it slowed production to a trickle, making just six jets a year, Jefferies analyst Sheila Kahyaoglu estimated. All told, Boeing has recorded $4.2 billion in accounting charges for the 747-8, which has been kept alive as a freighter. The 747 notched its last order as a passenger jet in 2017 — for Air Force One.Boeing’s jumbo freighters will continue to ply the skies for decades after production stops, said Aboulafia. But he’s dropped the passenger-only A380 from his forecasts.“It’s going to have the shortest lifespan of any type in history,” Aboulafia predicted. “I’d be shocked if there’s still an A380 in service in 2030.”Airbus disagreed. “We will see the A380 continue flying for many years,” the planemaker said by email.But the coronavirus pandemic is hastening the end of the behemoths as people movers. With travel not expected to fully recover until mid-decade, airlines are culling aging jetliners and four-engine jumbos from fleets to limit spending. About 91% of 747s and 97% of A380s are parked, Credit Suisse estimated last month.Air France, Lufthansa, and Qatar Airways are among carriers weighing whether to ground their A380s permanently or are preparing to do so. Airbus has just nine of the planes still be delivered. All but one of them are tagged for Emirates Airline, the largest A380 operator, which is considering whether to scrap its final five on order.The A380 has cost Airbus about 20 billion euros ($23 billion), breaking even or generating profits for only a three-year stretch starting in 2015, Agency Partners estimated. With just 251 aircraft sold over the program’s life, the planemaker never achieved the efficiency that comes with manufacturing at large scale, Tusa said.Boeing, meanwhile, had been preparing for years to wind down the 747 program, and its sales team has been sounding out customer interest in a potential freighter version of the 777X. If such a model goes forward, it would bolster flagging sales of the largest twin-engine aircraft in the company’s lineup.The telling omen that Boeing had written the iconic 747’s final chapter came in financial filings earlier this year. Gone was any indication that the company would continue to “evaluate the viability” of the program, standard phrasing it had previously used.“At a build rate of half an airplane per month, the 747-8 program has more than two years of production ahead of it in order to fulfill our current customer commitments. We will continue to make the right decisions to keep the production line healthy and meet customer needs,” Boeing said for this story.The planemaker has just 15 unfilled orders for the 747 — all freighters. A dozen of them are headed to United Parcel Service Inc., and the fate of the rest is unclear, part of a dispute with Russia’s Volga-Dnepr Group.Boeing has approached the U.S. courier and other potential customers about taking the three planes, people familiar with the matter said. The planemaker and UPS declined to comment. Volga-Dnepr didn’t respond to requests for comment.UPS in May agreed to take a 747 that Volga had ordered. “Working with Boeing, we saw an opportunity to bring another 747-8 online this year in time for our peak shipping season,” the courier said.Ultimately, Boeing’s decision on the 747 boiled down to resource allocation, said George Dimitroff, who leads valuations at aviation consultant Cirium. Could the assembly line floor space be better used on another airplane, such as the 767, which shares a bay in Boeing’s Everett, Washington, factory?“If you’re building half an airplane a month, it’s probably not your most profitable program,” Dimitroff said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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