The team at Morgans thinks that income investors should be looking at Australia’s leading poultry producer, Inghams.
Its analysts believe the company’s shares are being undervalued by the market. Particularly given its leadership position and attractive dividend yield. Morgans also highlights that the company is “leveraged to poultry – the affordable, healthy, sustainable and growth protein.” This bodes well for the future.
As for those attractive dividend yields, Morgans is expecting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.67, this equates to dividend yields of 6% and 6.25%, respectively.
Morgans has an add rating and $4.40 price target on its shares.
Over at Goldman Sachs, its analysts think that Orora could be an ASX income stock to buy. It is one of the world’s largest packaging companies. It manufactures packaging products such as glass bottles, beverage cans, and corrugated boxes.
Goldman appears to believe a selloff this year has created a buying opportunity for patient investors. Especially given its cheap valuation and above-average dividend yields.
In respect to the latter, the broker is forecasting dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025. Based on the current Orora share price of $2.19, this will mean yields of 5.5% and 5.9%, respectively.
Goldman has a buy rating and $3.00 price target on its shares.
A third ASX income stock to buy could be Super Retail. It is the owner of popular retail brands BCF, Macpac, Rebel, and Super Cheap Auto.
Goldman Sachs is also a fan of Super Retail and thinks it would be a great option for income investors. Especially given its loyalty program. Its analysts continue to “believe that SUL is building a competitive advantage through 11.1mn members and 76% sales to members, which will help drive sales in a more complex operating environment.”
Goldman believes this positions the company to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.23, this will mean yields of 5% and 5.5%, respectively.
Goldman has a buy rating and $17.80 price target on its shares.
Should you invest $1,000 in Inghams Group Limited right now?
Before you buy Inghams Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Inghams Group Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Australian share market is home to a large number of listed companies.
However, only a small portion of these can be classed as truly high quality companies.
Examples of this include ASX 100 stocks such as biotech giant CSL Ltd (ASX: CSL) and industrial property company Goodman Group Ltd (ASX: GMG).
But Bell Potter thinks that we should be adding a new ASX 100 stock to the list. That is enterprise technology company TechnologyOne Ltd (ASX: TNE).
What is the broker saying about this ASX 100 stock?
According to a note this morning, the broker believes that TechnologyOne’s quality makes it deserving of a re-rate to higher multiples. It commented:
Technology One has had very consistent and an increasing rate of PBT [profit before tax] growth the last four years: 13% in FY20, 14% in FY21, 15% and FY22 and 16% in FY23. This trend looks set to continue for the short to medium term with VA consensus forecast growth of 16%, 18% and 18% in FY24, FY25 and FY26 which is slightly below our forecasts of 17%, 19% and 19%. In our view this consistent and increasing growth has been a key driver of the PE re-rating in the stock over the last few years from around 30x to now around 40x. If the trend of consistent and increasing growth continues â as both consensus and we expect â then we believe this PE re-rating can continue up to a forward PE of around 50x.
Commenting on its comparison to other quality companies that have re-rated, the broker adds:
What’s interesting, however, is that while all these stocks have had re-ratings largely on the back of strong earnings growth over multiple years, the growth has not been consistent and in some cases has even been quite volatile. We believe, therefore, this is a key differentiator for Technology One in its favour and the comfort the market has in knowing the growth is going be consistent and not spike in one year or sink the next only supports in our view a continued re-rating in the multiple.
Double-digit returns
In light of the above, the broker has reaffirmed its buy rating and lifted its price target on the ASX 100 stock to $20.25.
Based on its current share price of $18.14, this implies potential upside of 11.6% for investors over the next 12 months.
The broker also expects a 1.2% dividend yield, lifting the total potential return to almost 13%.
Should you invest $1,000 in Technology One Limited right now?
Before you buy Technology One Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Technology One Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in CSL and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Technology One. The Motley Fool Australia has recommended CSL, Goodman Group, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Australian share market traditionally trades with an average dividend yield of 4%.
While this is a great yield and comparable to what you might find with savings accounts, you don’t have to settle for that.
Not when there are some ASX dividend stocks out there offering significantly larger yields.
In addition, one of these stocks has been tipped to grow its dividend in the coming years, meaning bigger and bigger yields could be coming.
So much so, the ASX dividend stock in this article is forecast by one leading broker to provide a yield as large as 8% in 2026.
The stock in question is Accent Group Ltd (ASX: AX1).
What is Accent?
In case you’re not familiar with Accent Group, let’s take a little look at what it does.
Accent is a footwear retailer and wholesaler which owns and operates a number of footwear businesses in the performance, comfort, and active lifestyle sectors.
This includes many store brands that readers will be familiar with such as The Athlete’s Foot, Platypus, HypeDC, and Stylerunner. In addition, it has the local rights to global brands such as Skechers, Vans, Timberland, Reebok, and Hoka.
Accent also has an emerging presence in youth apparel following the acquisition of Glue Store in 2021.
Big yields expected from this ASX dividend stock
Thanks to the strength of these brands and favourable consumer trends, Bell Potter believes that Accent is well-positioned to reward shareholders with some very attractive dividends in the coming years.
For example, in FY 2024, the broker is forecasting the company to pay a fully franked 13 cents per share dividend. Based on its current share price of $1.98, this will mean a 6.6% dividend yield for investors.
Looking ahead, Bell Potter believes the ASX stock will increase its dividend to 14.6 cents per share in FY 2025. This equates to a fully franked 7.4% dividend yield for anyone buying its shares at current levels.
This trend is expected to continue in FY 2026, with Bell Potter forecasting an increase to 16.4 cents per share. This will mean a very large 8.3% dividend yield for income investors to look forward to receiving that year.
But wait, there’s more! Bell Potter isn’t just expecting outsized dividend yields. It also expects Accent shares to deliver big capital gains over the next 12 months.
The broker has a buy rating and $2.50 price target on them. This implies potential upside of 26% for investors from current levels.
Should you invest $1,000 in Accent Group Limited right now?
Before you buy Accent Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Accent Group Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Saurabh Netravalkar celebrates after the USA defeated Pakistan in a super over during the ICC Men's T20 Cricket World Cup West Indies & USA 2024 match on June 06, 2024.
Matt Roberts-ICC
The US beat Pakistan in a stunning upset at the T20 Cricket World Cup on Thursday.
One of Team USA's players was Saurabh Netravalkar, a lead engineer at Oracle.
Netravalkar has risen through the ranks in both his professional and athletic endeavors.
The US bested Pakistan in a nail-biting match at the T20 Cricket World Cup on Thursday, thanks in part to the athleticism of a lead engineer at Oracle.
Saurabh Netravalkar spends his work days as a principal member of Oracle's technical team, flexing his professional skills at the software company, according to his LinkedIn profile. But on Thursday, he used his cricket skills to help lead the men's US team to a historic victory and stunning upset at the Grand Prairie Cricket Stadium in Texas.
In addition to being a top-notch techie, Netravalkar is also a left-arm fast bowler on Team USA. He's been a team member since 2018, per his LinkedIn.
Netravalkar was born in Mumbai in 1991 and played cricket in India for much of his adolescence, according to his USA Cricket profile.
Amid his burgeoning athletic career, Netravalkar has simultaneously risen through the ranks at Oracle, one of the largest software companies in the world. According to his LinkedIn, he joined the company in 2016 as a member of Oracle's technical staff. He was promoted to senior member in 2018 and again promoted to principal member in 2022.
Before that, he earned a Master's Degree in Computer Science from Cornell University in 2016 and a Bachelor's Degree in Computer Engineering from the University of Mumbai in 2013.
Netravalkar did not immediately respond to a request for comment from Business Insider.
A couple of ASX 200 shares have released updates this week to very different receptions.
One impressed the market and saw its shares launch higher, the other disappointed investors and led to its shares sinking deep into the red.
Goldman Sachs has been running the rule over the updates and while not overly impressed with one of them, still believes both ASX 200 shares are in the buy zone right now.
Let’s take a look at what the broker is saying about them:
This language testing and student placement company is the one that disappointed the market. The ASX 200 share sank 7.5% after warning about recent changes to regulatory settings.
It advised that a more restrictive policy environment in its key destination countries is reducing the size of the international student market. This has negatively impacted testing and student placement volumes during the second half. As a result, IDP Education is guiding to flat earnings in FY 2024.
Commenting on the update, Goldman said:
IEL’s trading update was soft, but should help investors better frame the earnings base for FY25 as the impacts of regulatory tightening measures become clearer.
The broker has now reduced its earnings forecasts for the coming years and expects its earnings to bottom in FY 2025. After which, Goldman believes its growth will resume.
Despite this weak near term outlook, the broker feels that its shares are undervalued. It said:
Overall we now expect FY25 EBIT of A$222mn, -4% vs FY24E, and cut FY24/25/26E EBIT -9%/-17%/-17% with IEL trading on 23x FY26E P/E, even assuming a modest FY26E recovery, though we acknowledge uncertainty remains on the CY25 CA cap and AU university placement caps.
Goldman now has a buy rating and $21.75 price target on its shares. This implies potential upside of approximately 50% for investors.
This wine giant’s shares charged higher this week after it reaffirmed its guidance for FY 2024 and spoke positively about its opportunity in North America.
In respect to the former, management continues to expect mid-high single digit EBITS growth for the year. It also advised that work to assess the future operating model for the company’s global portfolio of Premium brands is continuing with an update expected in August.
Goldman was impressed with this update and believes its growth is about to accelerate. It said:
In FY22-24e, we expect the company to deliver sales/EBITS/EPS CAGR of 4.0%/12.0%/8.7%, while from FY24-26e, we expect this to accelerate to ~7%/13%/12% respectively. All of this is against a moderately declining growth environment in US/China wine.
In light of the above, the broker has reiterated its buy rating on the ASX 200 share with an improved price target of $13.40. This suggests a potential return of 11% before dividends and almost 15% including them. Goldman concludes:
Our valuation multiple and methodology are unchanged. Our 12m TP of A$13.40/sh (from A$13.00/sh) implies 15% TSR and we reiterate Buy given positive delivery of the strategy reset as well as attractive double-digit EPS growth at an attractive valuation. The stock is trading at 1yr fwd P/E of 20x. The key catalyst for the stock will now be its June 20 Business Update focused on China.
Should you invest $1,000 in Idp Education right now?
Before you buy Idp Education shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Idp Education wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Choosing the right ASX stock or stocks to buy for an investment portfolio is a tricky process. With so many options on the Australian stock market to choose from, many new investors can get overwhelmed and pick the wrong shares to start with. Or even worse, they may decide the whole investing thing isn’t for them after all, and keep their cash in the bank. But if I had $1,000 to put into a new ASX stock today, there’s only one I would choose. It would be the Vanguard Australian Shares Index ETF (ASX: VAS).
The Vanguard Australian Shares ETF is the largest index fund on the ASX. it offers investors a simple deal: invest in this exchange-traded fund (ETF) and immediately gain access to a portfolio of ASX shares that almost perfectly reflect the largest 300 stocks on the ASX, weighted by market capitalisation.
Those 300 shares include everything from Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW) to Telstra Group Ltd (ASX: TLS), AGL Energy Ltd (ASX: AGL) and Harvey Norman Holdings Limited (ASX: HVN).
Why I would recommend the VAS ETF to any ASX investor today
This, in my view, makes VAS a great investment for almost anyone. Whether you’re an investing veteran or share market novice, this ASX stock can be a great addition to any portfolio.
For one, you are getting an investment that has historically given back a decent return over many decades. As of 30 April, VAS has averaged an ASX return of 8.97% per annum since its market inception in 2009. That includes both capital growth and dividends.
Speaking of dividends, VAS is an ASX investment that also has significant dividend income potential. Since this index fund holds the 300 largest shares on the ASX within its portfolio, it receives any dividends that these companies pay out. VAS passes these on to its ASX investors in the form of quarterly dividend distributions.
At recent pricing, the Vanguard Australian Shares ETF is trading on a trailing dividend distribution yield of 3.84%. This comes partially franked too, seeing as most of the dividends coming out of the ASX 300 come with at least some franking credits attached.
So with this VAS ETF, ASX investors can get instant diversification, a decent history of capital growth, and solid dividend income prospects all in one investment. For these reasons, I think VAS is a perfect place for any ASX investor to put $1,000 in spare cash today.
Should you invest $1,000 in Vanguard Australian Shares Index Etf right now?
Before you buy Vanguard Australian Shares Index Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Australian Shares Index Etf wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Woodside Energy Group Ltd (ASX: WDS) shares have been having a tough time this year.
Due largely to falling oil prices, the energy giant’s shares are thoroughly underperforming the market.
For example, since the start of 2024, the Woodside share price has lost approximately 13% of its value. As a comparison, the ASX 200 index is up 3% over the same period.
But given that Woodside is widely regarded as one of the highest quality companies in the global energy space, is this underperformance your cue to load up on its shares?
Let’s see what analysts are saying about the company and its shares right now.
Should you load up on Woodside shares?
A number of brokers see significant value in the company’s shares at the current level.
For example, even Macquarie, which has a neutral rating on its shares, has a price target of $32.00, implying 18% upside for investors over the next 12 months.
Elsewhere, Morgan Stanley recently put an overweight rating and $35.00 price target on Woodside’s shares. This suggests that they could rise by almost 30% between now and this time next year.
And over at Morgans, its analysts see even more value on offer. The broker has an add rating and $36.00 price target, which implies potential upside of 33% for investors from current levels.
In addition, Morgans is forecasting a 4.6% dividend yield in FY 2024, boosting the total potential return to almost 38%.
The broker believes that recent share price weakness has created an opportunity for investors to buy a high quality ASX stock at a great price. It said:
WDS’s share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.
Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile. WDS still has to address long-term issues in its fundamentals (such as declining production from key projects NWS/Pluto), but will still generate substantial high-quality earnings for years to come.
All in all, this could make it a great option for investors. Especially those that are wanting exposure to the energy sector.
Should you invest $1,000 in Woodside Petroleum Ltd right now?
Before you buy Woodside Petroleum Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Given June is upon us, so too is tax time… along with the moons and Ferris wheels. It’s natural for Australians to be thinking about any dollars they can save when they lodge their next tax return at this time of year. To indulge this admirable pursuit today, let’s talk about how building a bigger superannuation fund can help you save on your taxes.
Most of us would be aware that most contributions to superannuation are taxed at a 15% flat rate. Any earnings generated from super investments are also taxed at 15%. And once we enter the pension phase of our retirements, in many cases earnings can be enjoyed tax-free.
Of course, you’ll need to check with a tax professional to see what your personal circumstances might allow. You also might want to talk to a financial adviser about whether making extra super contributions might be the wisest course of action compared to paying down your mortgage or investing outside of super, for instance.
But those are the general rules for superannuation.
This means that for most Australians, contributing any extra funds above the mandatory 11% superannuation guarantee can automatically result in paying less in taxes.
Reduce your taxes using superannuation this tax time
According to the Australian Taxation Office (ATO), there are two kinds of contributions you can make to your super fund. Those are concessional contributions and… (you guessed it) non-concessional contributions.
Put simply, a concessional contribution is one that you can claim as a tax deduction. A non-concessional contribution is not eligible for that claim.
However, the good old days are no longer with us. Australians are no longer entitled to put as much cash as they want into super. At least without paying full taxes.
According to the ATO, the current cap on conventional contributions into one’s super fund is $27,500 per annum (including the 11% super guarantee). From 1 July this year, it will rise to $30,000. This means most Australians can only claim deductions of up to $27,500 in super contributions this tax time. That includes what your employer is required to pay you, of course.
However, you may be able to contribute more if you didn’t hit the cap in previous years.
The cap for non-concessional contributions is $110,000, but it will rise to $120,000 on 1 July. If you contribute more than this, you might have to pay extra taxes.
So, how much would someone be able to save in taxes from an extra contribution to their super fund?
As an example, let’s say someone who earns $100,000 per year before tax wants to make an extra superannuation contribution to save money at tax time.
This person would have already seen $11,000 taken out of their pay packets for their super fund.
But according to the MoneySmart website, our worker could save up to $5,692 in taxes if they were prepared to contribute an extra $10,000 to their super fund.
Foolish takeaway
Of course, all of this is just general advice. Everyone’s personal circumstances will be different. As such, it’s vital to check with a tax professional or financial adviser before making any big decisions when it comes to your super fund.
But super is a legitimate and potentially lucrative way to save some extra dollars this tax time. So make sure to check if you can do just that before 1 July.
Maximise Your Super before June 30: Uncover 5 Strategies Most Aussies Overlook!
With the end of the financial year almost upon us, there are some strategies that you may be able to take advantage of right now to save some tax and boost your savings…
Download our latest free report discover 5 super strategies that most Aussies miss today!
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
The information for the following product(s) has been collected independently by Business Insider: Citi Strata Premier℠ Card, U.S. Bank Shopper Cash Rewards™ Visa Signature® Card, Citi® Double Cash Card, Citi Custom Cash℠ Card, Citi Rewards+® Card, Citi Prestige® Card, Capital One Savor Cash Rewards Credit Card†, Capital One Spark Miles for Business†, Hilton Honors American Express Aspire Card, Marriott Bonvoy Bold® Credit Card, Marriott Bonvoy Boundless® Credit Card, Marriott Bonvoy Bountiful™ Card, U.S. Bank Altitude® Connect Visa Signature® Card, U.S. Bank Altitude® Go Visa Signature® Card, U.S. Bank Altitude® Reserve Visa Infinite® Card, U.S. Bank FlexPerks® Gold American Express® Card, U.S. Bank Business Triple Cash Rewards World Elite Mastercard®. The details for these products have not been reviewed or provided by the issuer.
You can redeem Chase, Amex, Citi, Capital One, Discover, Bilt, U.S. Bank, Bank of America, and Hilton points directly at Amazon checkout — but it's not always the best idea.
Crystal Cox/Business Insider
You can significantly reduce your shopping bill by redeeming credit card points on Amazon.
Many popular currencies participate, such as Chase Ultimate Rewards® and Amex Membership Rewards.
We don't usually recommend using points this way because they can be worth much more for travel.
Introduction to using credit card points on Amazon
Amazon makes it simple to redeem many rewards currencies from the best credit cards at checkout to offset your balance. We almost never recommend using your points this way, but it can make sense for you if you don't plan to travel in the near future.
Redeeming credit card points on Amazon can also a good strategy if you have a small points balance you won't otherwise use. And it can make Amazon Prime Day deals even sweeter if you use points to discount or pay for your purchase.
Here's everything you need to know about the benefits of using points for Amazon purchases.
Eligible credit cards for Amazon points use
Participating credit card programs
Multiple credit card programs allow customers to pay for Amazon purchases using their rewards. The full list is below:
Linking your card to Amazon
While each of the programs listed below has its own points system, linking your rewards card to Amazon is the same process across the board. Here's a step-by-step guide to account linking.
After logging into your account on Amazon, click on "Accounts & Lists" under your name at the top-right corner of the page. Once that page opens up, navigate to the "Your Payments" section toward the bottom left of the page.
Amazon
From there, scroll down the sidebar of your wallet until you find the "Add a payment method" button. Follow the prompts to add your rewards credit card. Once that's done, you can check your points balance on the Shop with Points account page to monitor your rewards programs. This is also the page you'll use to ensure that your account is not set up to pay with points by default.
Use Chase Points on Amazon
When you redeem Chase Ultimate Rewards points with Amazon, you'll receive a value of 0.8 cents per point. Still, if you plan to use your points through Amazon, your best bet is to simply make your purchase with an eligible Chase card and then redeem your points for a statement credit later at a rate of 1 cent each.
Chase Sapphire Preferred® Card — 75,000 bonus points after you spend $4,000 on purchases in the first three months from account opening
Chase Sapphire Reserve® — 75,000 bonus points after you spend $4,000 on purchases in the first three months from account opening
Ink Business Preferred® Credit Card — 100,000 bonus points after spending $8,000 on purchases in the first three months from account opening
To link your Chase Ultimate Rewards account with Amazon, click here. You'll then simply log in to your Amazon account, link your Chase card, and apply your Ultimate Rewards points at checkout.
Use Amex Points on Amazon
American Express Membership Rewards offers a very low redemption rate of 0.7 cents each for Amazon purchases — and the points value when redeeming for statement credits is even lower. If you want to make purchases with your Amex points, consider using them to purchase an American Express gift card at a rate of 1 cent per point, and then use those gift cards to buy your items.
You can earn Amex Membership Rewards points by opening and swiping cards like:
The Platinum Card® from American Express — 80,000 Membership Rewards® points after you spend $8,000 on eligible purchases on your new card in your first six months of card membership
American Express® Gold Card — 60,000 Membership Rewards® points after spending $6,000 on purchases on the card in the first six months of card membership
You can link your Amex Membership Rewards account with Amazon by clicking here. You'll log in to your Amazon account, link your eligible American Express card, and choose to apply your points to your order at checkout.
Use Citi ThankYou Points on Amazon
Per Business Insider's estimations, you'll receive just half of the average Citi ThankYou points value when redeeming your rewards for shopping with Amazon. This is not the currency to collect if you intend to regularly use your points for online shopping.
Citi issues credit cards like the Citi® Double Cash Card and Citi Custom Cash℠ Card which earn Citi ThankYou points you can use for travel, cash back, and more. Earning rewards on one of these cards and redeeming them for cash is your best route if you intend to use them for online shopping.
Click here to link your Citi ThankYou account to Amazon. Then just select your Citi ThankYou card as your payment method and choose to pay with points
Use Capital One Miles on Amazon
Again, Capital One miles are best used for travel — not for Amazon purchases. You'll receive less than half the average points value by redeeming them for shopping — a meager 0.8 cents each.
You can link your Capital One miles account to Amazon by clicking here. After you enroll your qualifying Capital One card, you'll see the option to pay with Capital One miles at checkout.
Use Discover Rewards on Amazon
Whether you collect cash back with the Discover it® Cash Back or miles with the Discover it® Miles, you can redeem them directly through Amazon to pay for all or part of your cart.
All Discover rewards are worth 1 cent each, whether you spend through Amazon or redeem for cash. Therefore, it's more beneficial for you to make your purchase with the card and later request a statement credit instead of using your rewards for the purchase.
This ensures you'll earn rewards for your purchase — which is especially handy if you have the Discover it® Cash Back, as its rotating bonus categories sometimes include Amazon purchases (from April 1 to June 30, 2024, earn 5% cash back at gas stations & electric vehicle charging stations, home improvement stores, and public transit on up to $1,500 in purchases after enrollment, then 1%).
Click here to link your Discover Rewards with Amazon and then select Discover as the payment method at checkout. You'll see the option to apply your cash back at that point.
Use Hilton Points on Amazon
You'd be hard-pressed to find a currency easier to earn than Hilton points. For example, The Hilton Honors American Express Business Card currently offers a welcome bonus of 130,000 Hilton Honors bonus points after you spend $6,000 in purchases on the card within the first six months of card membership.
You'll even get 5x points on the first $100,000 spent on other purchases outside of eligible Hilton purchases each calendar year (then 3x points).
However, the redemption rate of 0.2 cents per point means you'll get a return of as little as 0.6% back on purchases. If you intend to use Hilton points to shop on Amazon, make a cash-back credit card your daily driver, instead.
Hilton Honors American Express Aspire Card — 175,000 Hilton Honors bonus points after you spend $6,000 in purchases on the card within your first six months of card membership (offer ends 7/31/2024)
Hilton Honors American Express Surpass® Card — 130,000 Hilton Honors bonus points plus a Free Night Reward after you spend $3,000 in purchases on the card in the first six months of card membership (offer ends 7/31/2024)
Hilton Honors American Express Card — 70,000 Hilton Honors bonus points plus a Free Night Reward after you spend $2,000 in purchases on the card in the first six months of card membership (offer ends 7/31/2024)
Use Marriott Points on Amazon
You can't use your Marriott points directly on the Amazon website as you can with the previous rewards currencies. However, if you navigate to Marriott Shop With Points, you can purchase an Amazon gift card with your points at the following rates:
$25 gift card — 10,000 points
$50 gift card — 17,500 points
$100 gift card — 30,000 points
In other words, the most value you'll get by using your points with Amazon is 0.33 cents each — less than half the average value you'll receive by using your points for travel.
Marriott Bonvoy Business® American Express® Card — Limited Time Offer: five Free Night Awards, valued at up to 50K points each for eligible stays, after you use your new card to make $8,000 in eligible purchases within the first six months of card membership (offer ends 7/10/24)
Marriott Bonvoy Bevy™ American Express® Card — 85,000 Marriott Bonvoy bonus points after you use your new card to make $5,000 in purchases within the first six months of card membership
Marriott Bonvoy Bold® Credit Card — 30,000 bonus points after you spend $1,000 on purchases in the first three months from account opening
Marriott Bonvoy Boundless® Credit Card — 5 Free Night Awards (each night valued up to 50,000 points) after you spend $3,000 on purchases in your first three months from your account opening
Marriott Bonvoy Bountiful™ Card — 85,000 bonus points after you spend $4,000 in purchases in your first three months from your account opening
Use Bilt Points on Amazon
You can use Bilt Points directly through the Amazon website after enrolling your Bilt Mastercard® on Shop with Points. Then, when you checkout on Amazon, select the Bilt credit card and choose the number of points you'd like to apply to your order.
You'll only get around 0.7 cents per point when you redeem on Amazon, which isn't the best rate but better than some of the other options on this list. However, you'll get the most value out of your reward points when you transfer to airline and hotel partners.
Click here to enroll your Bilt Mastercard® with Amazon.
Use U.S. Bank Rewards at Amazon
It's easy to redeem U.S. Bank rewards through Amazon.com checkout, and you'll get a solid 1:1 rate. So if you have an eligible U.S. Bank card, and are looking to redeem rewards for Amazon purchases, you'll get a fair value. However, redeeming for travel through the U.S. Bank portal is still a more valuable redemption option.
That said, if your main objective is to redeem on Amazon anyway, you might as well get a cash-back card versus a points-earning card. The best U.S. Bank card option in this instance is the U.S. Bank Shopper Cash Rewards™ Visa Signature® Card, which can earn you 6% cash back at Amazon (when selected as one of two retail brand earning categories).
You can earn U.S. Bank rewards on the following cards:
U.S. Bank FlexPerks® Gold American Express® Card — 30,000 bonus FlexPoints after spending $2,000 in eligible purchases on the card in the first four months from account opening
U.S. Bank Business Leverage® Visa Signature® Card — $750 in rewards when you spend $7,500 in eligible purchases on the card within the first 120 days of account opening
Click here to enroll your card with Shop with Points.
Use Bank of America Unlimited Cash Rewards at Amazon
The Bank of America® Unlimited Cash Rewards Credit Card is one of Business Insider's picks for the best Bank of America credit cards, and the only Bank of America credit card eligible to be enrolled in Shop with Points. It has a no-frills cash-back program that offers a value of 1 cent per point.
It's a no-annual-fee card and earns unlimited 1.5% cash back on all purchases. New cardholders can earn $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.
Once your card is enrolled with Shop with Points, you'll be able to view your eligible Bank of America point balance.
Click here to enroll your Bank of America® Unlimited Cash Rewards Credit Card with Shop with Points.
How to apply points to Amazon purchases
Once your rewards card has been linked to Amazon, you can apply points at check-out quite easily.
Redeeming points at checkout
First, navigate to your shopping cart page and click "Proceed to checkout." Under the "Payment method" section, select your rewards credit card if it isn't the default form of payment designated in your account. When you look through the list of connected credit and debit cards, you'll see eligible rewards cards with the value of your points in Amazon credit listed below them.
Adjusting points used for each purchase
Select the card you want to use, then use the text field to enter the number of points you want to use toward your total balance. If you're participating in one of Amazon's frequent promotions for American Express Membership Rewards or Chase Ultimate Rewards, you can often trigger your discount or promotional cash back by paying with a single point.
Maximizing the value of points on Amazon
As mentioned several times, you'll rarely get good value from using your points on Amazon purchases. There are a few exceptions, such as when Amazon offers a generous discount or cash back from using a small number of points toward your purchases.
The best way to determine the value of your points is by comparing them against Business Insider's valuations. Our credit card experts have carefully calculated the value of each rewards system so you can tell if you're getting a good, mediocre, or poor deal on your exchange.
Conclusion
There are several options for smart shopping with credit card points on Amazon. Just keep an eye on each transaction to ensure that you're getting the best value. And at all costs, make sure you don't end up paying for your entire purchase with points by default.
Shop With Points at Amazon frequently asked questions
Which credit cards allow you to use points on Amazon?
Many major credit cards with rewards programs, such as those from American Express, Chase, and Citi, allow you to use points for Amazon purchases.
How do I link my credit card rewards account to Amazon?
From your account on the Amazon website, navigate to "Accounts & Lists", then "My Payments", and follow the prompts to connect your credit card. An eligible card with convertible points will automatically offer the option to pay with points at checkout. You can choose how many points to use.
Can I use points to cover the entire purchase amount on Amazon?
Yes, you can use points to cover the full cost of eligible purchases, or use a combination of points and another payment method.
Is it always a good value to use credit card points on Amazon?
The value of using points on Amazon can vary. It's important to compare the redemption value of using points on Amazon to other redemption options available through your credit card rewards program.
Can I use points for all items on Amazon?
Most items sold directly by Amazon and fulfilled by Amazon are eligible for purchase with points, but there may be restrictions on some products or categories.
Is Amazon Shop With Points a good deal?
Paying with points at Amazon is almost never as good a deal as other redemptions. You won't receive outsized value for your rewards, and the return rate you'll get is significantly below what you can expect if you use them for travel. A big exception is the aforementioned promotions that offer a significant discount for using just a single point.
How do I find discount promotions for using points at Amazon?
Amazon promotional discounts for shopping with points usually come to your email. You can also search online for discounts using a specific rewards currency. These offers are usually targeted, so if you haven't received an email with a link to enroll, you may be out of luck.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
The information for the following product(s) has been collected independently by Business Insider: CitiBusiness® / AAdvantage® Platinum Select® World Elite Mastercard®, Capital One Spark Miles for Business†. The details for these products have not been reviewed or provided by the issuer.
Business credit cards can help you earn bonus rewards on common expenses like office supplies.
MoMo Productions/Getty Images
If you own a business or do any freelancing or side gigs, there are plenty of reasons to get a business credit card instead of a personal one.
When searching for the right business credit card, look at factors like welcome bonuses, earning categories, and purchase protection.
The best business credit cards offer a lot of benefits both in common with personal credit cards and in addition to them. Like personal rewards credit cards, many business credit cards promote attractive welcome bonus offers, extend purchase protection and travel insurance, and in the case of airline credit cards and hotel credit cards, come with day-of-travel perks like free checked bags and anniversary award nights.
Even without your own formal small business, you might still qualify for a small business credit card — and you might want to do so for a number of reasons. Using a business credit card can help you keep your personal and work expenses separate. That, in turn, can even help improve your personal credit score over time.
Business Credit Card Benefits and Advantages
There are currently a lot of great business rewards cards available, so if you've been thinking about applying for one, now might just be the right time. Before you do, though, here are five benefits you should look for in any business credit card you apply for.
A high welcome bonus offer
One of the best reasons to apply for a business credit card is that they often offer introductory bonuses that are as good as, or even better than, their personal counterparts.
For example, the Chase Sapphire Preferred® Card, with a $95 annual fee, is currently offering new cardholders 75,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. On the other hand, the Ink Business Preferred® Credit Card is offering new cardholders 100,000 bonus points after spending $8,000 on purchases in the first three months from account opening, and it has a $95 annual fee. So you could potentially earn more bonus points, if you're able to meet the spending requirement, by applying for the business card.
The Hilton Honors American Express Surpass® Card has a $150 annual fee and its welcome bonus offer is 130,000 Hilton Honors bonus points plus a Free Night Reward after you spend $3,000 in purchases on the card in the first six months of card membership (offer ends 7/31/2024). With a $195 annual fee, The Hilton Honors American Express Business Card is currently offering a welcome bonus of 130,000 Hilton Honors bonus points after you spend $6,000 in purchases on the card within the first six months of card membership.
Bonus earning categories
Like personal rewards credit cards, many business credit cards earn bonus points on particular purchase categories. No matter which business credit card you apply for, you should make sure it earns bonus points or miles where you actually spend the most money. Some business cards even offer a certain amount of flexibility when it comes to maximizing your purchase activity.
For example, the American Express® Business Gold Card earns an excellent 4 Amex Membership Rewards points per dollar on up to $150,000 in combined purchases per year on the two categories where you spend the most each billing cycle from a prescribed list of possibilities that includes U.S. gas stations, U.S. restaurants, U.S. shipping providers, U.S. purchases made from electronic goods retailers and software & cloud system providers, U.S. purchases for advertising in select media and transit purchases including trains, taxicabs, rideshare services, ferries, tolls, parking, buses, and subways. So even if your buying habits vary from month to month, you can still take advantage of the card's bonus earning.
Since many small businesses tend to make large one-time purchases, some business credit cards also offer bonus points or miles on big buys, too. For example, the Delta SkyMiles® Platinum Business American Express Card earns 3 miles per dollar on eligible direct Delta and hotel purchases, but also 1.5 miles per dollar on eligible transit and U.S. shipping purchases, plus single eligible purchases of $5,000 or more, up to $100,000 per calendar year.
Day-of-travel benefits
Many of the best travel cards — both business and personal — offer perks that make the travel experience itself that much better. These can include things like free checked bags and priority boarding, like many of the best airline credit cards do, or automatic elite status and free anniversary nights, like those offered by many of the best hotel credit cards.
If you're a frequent traveler and use your business credit card for work trips, you need to think about whether it offers adequate coverage in case things go wrong while you're on the road. Take a look at your card's benefits and make sure it extends protection for things like trip interruption, cancellation, and delays, as well as lost luggage and primary rental car insurance.
One card that offers exceptional travel coverage is the Ink Business Preferred® Credit Card. For example, if your flight is delayed by at least 12 hours (or your delay requires an overnight stay), you can be covered up to $500 for reasonable expenses such as lodging, transportation, food, etc.
The Business Platinum Card® from American Express extends trip cancellation insurance up to $10,000 per trip and $20,000 per 12-month period as well as trip delay insurance that kicks in at six hours and is good for up to $500 per trip in case you need to spend money on things like accommodations or meals.
Purchase protection
Many small business owners need a business credit card specifically to make large purchases — such as for equipment or supplies — for work. If that's your situation, it is imperative to use a credit card that offers sufficient purchase protection in case something goes wrong with the things you buy.
For example, Chase's purchase protection on the Ink Business Unlimited® Credit Card and the Ink Business Cash® Credit Card will both cover you against damage or theft on eligible items up to 120 days after you make a purchase with caps of $10,000 per claim and $50,000 per account.
Certain American Express cards offer similar coverage, such as the Delta SkyMiles® Reserve Business American Express Card whose purchase protection is good up to 90 days out on claims of up to $10,000 each and $50,000 per account per calendar year. Using a card with purchase protection like this can literally save you thousands of dollars in case something goes wrong with your work purchases.
As a side note, some credit cards offer cell phone protection (usually subject to a deductible) against damage or theft, including the Ink Business Preferred® Credit Card.
What to know about business credit card benefits
There are plenty of great reasons to apply for a business credit card, and there are also some key benefits you should look for in any business credit card you are thinking of getting. Finding a product that will not only earn you thousands of bonus points or cash back through a welcome bonus offer and special earning categories, but that will also save you time and money through various travel and purchase protections, is the key to maximizing any business credit card you carry.
