Author: therawinformant

ASX dividend shares are a great way to boost your income.

Cash is still a good way to protect your capital value. But what if you’re trying to make an income? It hardly earns anything any more. But dividends can be the answer. Businesses are still earning profits and paying out dividends. Even during this coronavirus period. 

Here are the three best ASX dividend shares I’d buy right now:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be the best ASX dividend share when it comes to reliability. It has increased its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903, including through all of the wars and recessions.

The way Soul Patts is able to do this is because it’s an investment conglomerate that’s invested in a variety of different businesses and industries such as TPG Telecom Ltd (ASX: TPM) and soon it’ll be invested in regional data centres.

Each year Soul Patts pays out the majority of its investment income that it receives, less the expenses it pays for.

It’s the type of business that you can invest in and hold for many years to come. What’s the yield for the ASX dividend share? It has a grossed-up dividend yield of 4.7%.

Brickworks Limited (ASX: BKW)

Brickworks is another great option in my opinion. This ASX dividend share hasn’t decreased its dividend for more than four decades. It owns a range of building products businesses which are among the biggest in Australia, particularly the brickmaking divisions.

The recent expansion into the US through acquisitions should be a smart move if Brickworks can become more efficient there over time.

What’s particularly attractive at the moment is that Brickworks’ share price has fallen so hard, but it’s actually invested in an industrial property trust along with Goodman Group (ASX: GMG) which generates good reliable cashflow. It also owns a large stake of Soul Patts shares. Soul Patts also owns a large chunk of Brickworks.

The non-construction businesses alone are creating enough cashflow for Brickworks to keep paying the dividend. It currently has a grossed-up dividend yield of 6%. I think that’s solid

WAM Research Limited (ASX: WLE)

WAM Research is one of the best listed investment companies (LICs) for income. It has grown its dividend every year since the GFC.

The ASX dividend share has a grossed-up dividend yield of 10.4%. It manages to fund such a large dividend by generating strong investment returns by targeting small and medium shares where there’s a catalyst to boost the share price.

Dividends have to be funded by the profit reserve, but it’s currently healthy for the LIC.

Foolish takeaway

Each of these ASX dividend shares have attractive income prospects and could be much better ideas for income compared to the overall ASX. But Soul Patts would be my preferred pick for long-term income.

More reading

• Where to invest $20,000 into shares right now
• 3 shares now trading at crazy cheap prices
• 2 ASX shares I plan to hold til I’m 100
• Is the ASX 200 getting too far ahead of itself?
• 3 ASX shares that will have strong dividends in 2020

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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 My 3 best ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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The Telstra Corporation Ltd (ASX: TLS) share price is weathering the COVID-19 market meltdown better than most, but the calm could be marred by another mobile plan price war.

The risks of a price war are growing now that the merger between TPG Telecom Ltd (ASX: TPM) and Vodaphone is largely fait accompli.

A return of the bruising battle between mobile operators in late 2018 will almost certainly see the Telstra share price suffer after a period of relative outperformance.

While the stock is down by around 13% since the start of the year, the S&P/ASX 200 Index (Index:^AXJO) is lagging with a 17% decline due to the pandemic.

Smaller battle

The good news is that any new mobile war is unlikely to be as value destroying as the last one, according to UBS.

The broker is witnessing increasingly evidence of mobile discounting returning but believes the discounts will be more tactical this time round as opposed to outright price cuts on plans.

The tactical discounts are those that apply when customers bundle services or when existing customers add new services.

Itching for a fight

But Vodafone may be more motivated to win greater market share due to its greater exposure to international students. The number of these students have plummeted since the global coronavirus lockdown.

This means the number three network is likely to post falling subscriber numbers while Telstra gains subs.

Vodafone may also be forced to be more aggressive due to pressure from Telstra’s flanker brands. These brands sell lower cost plans under Belong and JB Hi-Fi Limited (ASX: JBH).  

UBS pointed out that the flanker brands are pressuring the average revenue per user (ARPU) across the industry by more than the market realises.

Further, Vodafone is likely to feel the heat to act as its ability to grow ARPU through 5G is more limited than Telstra.

Showing restrain

“We flag that whilst the benign industry status quo suits TLS best with its c50% share, the #3 player Vodafone may be less content with its existing c20% share. We therefore expect discounting to return incrementally,” said UBS.

“With industry post-tax ROICs [return on invested capital] (ex NBN migration payments) now only c4% vs c10% at FY16, MNOs [mobile network operators] simply cannot afford another downward repricing of their customer books.”

Who would have thought we can count on skinner returns and the cash crunch from the COVID-19 fallout to protect Telstra shareholders!

Foolish takeaway

But this doesn’t mean Telstra is out of the woods. UBS believes consensus earnings forecasts for our largest telco may be too optimistic as the market doesn’t seem to be pricing in any real competition.

On the other hand, I think as long as Telstra can cover its dividend payouts, investors will be willing to tolerate a hungrier competitor.

The fact is, the number of reliable and high dividend paying ASX stocks are in short supply.

More reading

• Brokers name 3 ASX 200 shares to buy right now
• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity
• 3 reasons the Telstra dividend is sustainable for the foreseeable future
• Can you still invest like Warren Buffett in 2020?
• Why is the Telstra share price being left behind?

Motley Fool contributor Brendon Lau owns shares of Telstra Limited and TPG Telecom Limited. 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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If you’re planning to invest into the Australian share market, then one of the shares listed below could be worth considering whether you’re looking for growth, income, or value.

Here’s why I think these shares are in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company could be a good option for value investors. The earnings of its core poker machine business have been hit hard by the pandemic and are likely to remain subdued until casinos reopen again. But once things return to normal, I expect Aristocrat’s group earnings to accelerate materially. Especially given the impressive growth being exhibited by its digital segment. Based on this, I estimate that its shares are changing hands at just 18x FY 2021 earnings. Given its positive long term outlook, I think this is a real gift for investors.

Pushpay Holdings Group Ltd (ASX: PPH)

Growth investors might want to consider an investment in this donor management platform provider. Pushpay is rapidly bringing the church market into the modern age with its increasingly popular platform. The company has just recorded exceptionally strong operating profit growth in FY 2020 and is guiding to further strong growth in FY 2021. Looking beyond this, management believes it has a massive market opportunity. And thanks to the quality of its platform, I expect it to capture a big slice of it.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

If you’re an income investor and can afford to be patient, then this airport operator could be a good option. The pandemic has impacted the travel and tourism markets materially in 2020, but they will recover in time. I suspect that domestic travel will recover reasonably quickly, with international travel taking another 12 months after that to recover. In light of this, I estimate that Sydney Airport will pay a 27 cents per share dividend in FY 2021 and then a 37 cents per share dividend in FY 2022. This implies yields of 4.7% and 6.5%, respectively, over the two years. I think this makes it a good option for patient investors.

More reading

• Brokers name 3 ASX 200 shares to buy right now
• Why Aristocrat Leisure, Afterpay, Corporate Travel, and Sydney Airport are pushing higher
• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 0.4%, Chinese threat to Australian iron

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

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I’m a big fan of growth shares, so feel quite fortunate to have a large number of quality options to choose from on the Australian share market.

And while the coronavirus crisis could stifle their growth in the immediate term, I believe many of them will bounce back strongly in FY 2021.

Three growth shares that I believe could provide market-beating returns for investors over the next decade are listed below. Here’s why I think growth investors ought to consider buying them:

Altium Limited (ASX: ALU)

Altium is an electronic design software company which I believe has the potential to generate strong returns for investors over the next decade. This is thanks to the company’s award-winning Altium Designer platform, which is exposed to the rapidly growing Internet of Things market. Altium is aiming for market leadership by 2025 with 100,000 Altium Designer subscribers. It expects this to lead to US$500 million revenue, up from its forecast for almost US$200 million in FY 2020.

Bubs Australia Ltd (ASX: BUB)

Another growth share which could be destined for big things is Bubs. It is an infant formula and baby food company which has been growing at a very strong rate over the last few years. And thanks to some recent supply agreements with major supermarkets, it looks well-placed to continue this positive form. Especially given the growing demand for ANZ-manufactured infant formula in the lucrative China market.

Xero Limited (ASX: XRO)

Another growth share to consider buying is cloud-based business and accounting software provider, Xero. Although the pandemic is likely to weigh on its subscriber growth in the immediate term, I believe its long term outlook remains very positive. Especially given how the company estimates that less than 20% of the global English-speaking SME market is using cloud-based accounting software. I believe this provides it with a significant runway for growth over the next decade. 

More reading

• 3 mid cap ASX growth shares to buy for monster returns
• 3 shares I’d buy if the coronavirus selloff gets worse
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• Why I’d invest $1,000 in this ASX tech share today
• 3 five-star ASX 200 shares to buy right now

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 BUBS AUST FPO and Xero. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. The benchmark index is currently down 0.5% to 5,522.9 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

The Aristocrat Leisure Limited (ASX: ALL) share price is up 2% to $26.60. The catalyst for this gain appears to be a broker note out of Citi this morning. Although the gaming technology company fell short of its expectations in the first half, it remains positive on its future prospects. So much so, it has retained its buy rating and lifted the price target on its shares to $30.10.

The Afterpay Ltd (ASX: APT) share price is up almost 2% to $44.75. Investors have been buying this payments company’s shares this week after it revealed very strong customer growth in the United States. According to its update, two years after launching in the country, it has 5 million active U.S. customers on its platform. Impressively, 1 million of these customers were added in the last 10 weeks during the pandemic.

The Corporate Travel Management Ltd (ASX: CTD) share price is up 5.5% to $11.69. Investors have been buying a number of travel booking shares on Friday despite there being no news out of them. Investors may be hopeful that the potential development of a successful vaccine could unlock global borders and accelerate the recovery of international tourism.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is up 1.5% to $5.67. This follows the release of its virtual annual general meeting presentation this morning. That presentation revealed that the airport operator has no plans to raise equity in the near future. The company also confirmed there will be no interim distribution in FY 2020. Looking ahead, it will be waiting for clarity on the path to recovery before confirming future distribution plans.

More reading

• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity
• Why Afterpay and these ASX shares just hit multi-year highs
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 0.4%, Chinese threat to Australian iron
• 2 ASX 200 dividend shares to buy for income in 2021

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

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With many savings accounts offering interest rates of just 1% per annum, if I had $10,000 in an account I would consider putting it to work in the share market.

After all, if you invest wisely, you could generate a return ten times that with shares.

But where should you invest $10,000 right now? Two top shares to consider are listed below:

Bigtincan Holdings Ltd (ASX: BTH)

I think Bigtincan could be a good option for investors. It is a provider of enterprise mobility software. The key product in its portfolio is the Bigtincan Hub. It increases the success of sales and service teams by helping them improve training, meeting preparation, customer engagement, and collaboration with peers. This results in short sales cycles, higher win rates, increased customer satisfaction and loyalty, and, most importantly, improved business results.

The company has been growing at a very strong rate and appears well-positioned to continue this trend for the foreseeable future. Especially after its recent $40 million capital raising. The proceeds will be used to accelerate key strategic priorities, take advantage of market tailwinds, and for potential acquisitions.

SEEK Limited (ASX: SEK)

Another option for a $10,000 investment could be this job listings company. Times are certainly hard for SEEK right now because of the pandemic. Last month the company released a trading update which revealed that listing volumes were down materially. This led to SEEK’s billings for the ANZ and Asia market for the week ended March 29 falling 60% on the prior corresponding period.

And while its listing volumes are likely to remain subdued until the crisis passes, I’m confident they will recover strongly in 2021. Combined with its rapidly growing China business, this should put the company back on a path to achieving its aspirational revenue target later this decade. SEEK has been targeting revenue of $5 billion by 2025, up from $1,537.3 million in FY 2019. I suspect the pandemic may mean it has to push back this target by a year or two, but I believe it will get there. This could make it a great option for patient long term investors.

More reading

• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• Why Aristocrat Leisure, Bigtincan, Clover, & Megaport shares are dropping lower
• How you can get very rich with ASX 200 shares
• The newspaper killers: 3 ASX 200 online classifieds shares dominating the market
• Where to invest $10,000 into ASX shares

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended SEEK 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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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. The benchmark index is currently down 0.2% to 5,538.9 points.

Here’s what has been happening:

Wesfarmers Target update.

The Wesfarmers Ltd (ASX: WES) share price is edging higher on Friday after providing an update on its Target business. The conglomerate is planning to convert some stores in Kmart stores and close down a large number of other underperforming stores. It will then look into other options for the remaining Target stores. These actions will hit the company’s profits through both non-cash and cash charges.

Sydney Airport AGM update.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is pushing higher on Friday after revealing that it has no plans to raise equity in the near future. The company also confirmed there will be no interim distribution. It will be waiting for clarity on the path to recovery before confirming future distribution plans.

Travel shares rise.

One area of the market that is booming on Friday is the travel and tourism sector. The likes of Corporate Travel Management Ltd (ASX: CTD) and Flight Centre Travel Group Ltd (ASX: FLT) are all pushing notably higher at lunch. Investors appear hopeful that the potential development of a successful vaccine could unlock global borders and accelerate the recovery of international tourism.

Best and worst ASX 200 performers.

The best performer on the ASX 200 today has been the Corporate Travel Management share price with a gain of almost 8%. A good number of travel shares are storming higher today. The worst performer on the index is the Unibail-Rodamco-Westfield (ASX: URW) share price with a decline of almost 6%. The shopping centre operator’s shares have continued their downward trend and fallen to a new record low today. Investors have been selling its shares due to concerns over the negative impact of the pandemic on its centres.

More reading

• Why Aristocrat Leisure, Afterpay, Corporate Travel, and Sydney Airport are pushing higher
• Can you still invest like Warren Buffett in 2020?
• Wesfarmers share price lower after announcing major Target overhaul
• Why is the Telstra share price being left behind?
• Are ASX 200 REIT shares a dividend trap?

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. The Motley Fool Australia owns shares of Wesfarmers 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.

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The MoneyMe Ltd (ASX: MME) share price has raced out of the gates to be up by as much as 18.63% in early trade. This morning, the company provided a market update on its business operations and also announced the forthcoming launch of a new product offering.

MoneyMe is still relatively new to the ASX after publicly listing in December last year at an initial public offering price of $1.25. The company is a digital consumer credit business, leveraging its Horizon Technology Platform and big data analytics to deliver an innovative loan offering to online-ready consumers.

May 2020 business update

This morning, MoneyMe revealed that its diversified customer base and target orientation growth strategy continues to minimise COVID-19 credit risk. As a result, the company has seen a continuing downward trend of payment requests due to the pandemic.

The majority of customers who previously sought hardship relief have resumed making repayments, with only 1.7% of receivables having payments deferred.

MoneyMe also remains confident in establishing a new funding facility. If secured, the facility will help to support asset growth and lower funding costs. However, timing is a slight sticking point. The execution of a new facility is likely to be delayed to the first quarter of FY21 due to circumstances relating to COVID-19.

In the meantime, the company has secured a further 18 months of continued access to its existing trust funding facilities to provide funding certainty through to November 2021. MoneyMe notes that its existing facilities and cash on hand leave the company well-placed for origination funding and growth opportunities.

New product launch

Along with the business update, MoneyMe also announced that a new product offering, RentReady, will be officially launched in June. RentReady is a first-to-market product designed to support landlords with capital spend requirements and any short-term rent or operational requirements.

The product features a line of credit of up to $15,000 administered by property managers for landlords, with repayment over a period of 24 months. The credit can be used by landlords for a number of different options, including general service, maintenance, and improvement spend, as well as to cover shorter-term rent shortfalls – a timely option in the current environment.

MoneyMe highlighted the highly complementary nature of RentReady to another of its key offerings, ListReady, which assists residential property vendors with the costs of marketing their home for sale. ListReady has more than 240 agencies and 1,500 agents signed up to support vendor sales.

At the time of writing, the MoneyMe share price is currently sitting 10.45% higher for the day at $1.22, reducing its year-to-date fall to 15.86%.

More reading

• ASX small-cap sector rallies strongly during April

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

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