Stock Pick

  • 3 ASX shares that will have strong dividends in 2020

    ATM with Australian $100 bills

    Looking for strong dividends in 2020?

    Well, they’re not as easy to find as it might have appeared in January or February. Since the outbreak of the coronavirus and subsequent economic lockdowns, a huge range of ASX blue-chips announced dividend cuts or even cancellations.

    These include everything from the ‘big four’ banks like Westpac Banking Corp (ASX: WBC) to ‘safe’ dividend payers like Transurban Group (ASX: TCL).

    But I think there are still some companies out there that offer a solid dividend outlook for 2020 and beyond (although anything is possible). So here are three ASX shares that (in my opinion) won’t have to cut their shareholder payouts this year.

    Coles Group Ltd (ASX: COL)

    Coles was the face of defensive ASX companies as the coronavirus pandemic took hold. Consumers flocked to Coles and other supermarkets to stock up on essentials, which initially saw Coles post a 12% rise in sales for the first quarter of FY20 last month. Although I suspect demand has returned to more normal levels since, it certainly proved how useful being a consumer staples giant can be in tough times.

    As such, I think Coles’ dividends will continue to flow in 2020 (and might even get an increase). On current prices, you can expect a trailing dividend yield of 2.75% from Coles shares – or 3.93% grossed-up with full franking.

    Fortescue Metals Group Ltd (ASX: FMG)

    Fortescue is one of the largest iron ore mines in the country and has amassed a reputation as a strong dividend payer in recent years. Even on current prices (which are at record highs today), Fortescue has a trailing dividend yield of 7.23% – or 10.76% grossed-up with full franking.

    Right now, iron ore is a great business to be in. The iron ore price hit US$91.90 today and looks to push even higher after production issues emerged in Brazil. If these prices hold (or even if they don’t), Fortescue should be able to shovel even more cash out the doors in 2020.

    WAM Research Ltd (ASX: WAX)

    WAM Research is a Listed Investment Company (LIC) that specialises in finding undervalued growth companies. It has a long and strong history of paying fully franked dividends, which, at the time of writing, give WAX shares a trailing yield of 7.33% (or 10.47% grossed-up).

    But the best part of this story is that this LIC has plenty of gas left in the tank to continue to pay these dividends. Its most recent interim dividend came out at 4.9 cents per share – well covered by the company’s profit reserves of 26.2 cents per share. That’s a big buffer for dividend payments to carry us through 2020!

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    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

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

    The post 3 ASX shares that will have strong dividends in 2020 appeared first on Motley Fool Australia.

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  • 3 ASX 200 blue chip shares I would buy today

    finger pressing red button on keyboard labelled Buy

    If you’re wanting to add a few blue chip ASX shares to your portfolio, then you’re in luck.

    The S&P/ASX 200 Index (ASX: XJO) is home to a good number of blue chips which I believe could generate strong returns for investors in 2020 and beyond.

    Three blue chip ASX shares that I would buy are listed below. Here’s why I like them:

    CSL Limited (ASX: CSL)

    The first blue chip I would buy is CSL. I think the global biotherapeutics company has the potential to provide investors with strong returns over the next decade. This is due to its leading therapies, growing plasma collection network, and lucrative research and development pipeline. In respect to the latter, the company has a wide range of therapies under development which have the potential to generate significant revenue and support the rest of the business in the coming years.

    REA Group Limited (ASX: REA)

    Another blue chip share to consider is REA Group. I think the realestate.com.au operator is one of the best long term investments on the ASX 200. This is because of its high quality and resilient business model. This resilience has been on display this year. REA Group recently released its third quarter update and revealed a 1% increase in revenue to $199.8 million and an 8% lift in EBITDA to $119.6 million. This was despite dealing with a 7% decline in listings during the quarter. And while trading conditions will remain tough in the near term, I expect its earnings growth to accelerate once the crisis passes.

    Woolworths Limited (ASX: WOW)

    I think this retail conglomerate could be a good option for investors. Although best known for its supermarkets, Woolworths is also behind the likes of Dan Murphy’s, BWS, and BIG W. Combined, I believe the company is well-positioned to grow its earnings and dividends at a solid rate for the foreseeable future. Especially given its entrenched customer base and defensive business model.

    And finally, don’t miss these dirt cheap shares which could rebound very strongly when the crisis passes…

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

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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 CSL Ltd. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended REA 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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  • Moderna Stock Offering Is to Price at $76 Per Share

    Moderna Stock Offering Is to Price at $76 Per Share(Bloomberg) — Moderna Inc. plans to raise as much as $1.3 billion through a sale of shares to fund manufacturing of a coronavirus vaccine seen as one of the frontrunners in the race for immunization against the widening pandemic. The U.S. biotechnology firm will sell 17.6 million shares priced at $76 a piece, according to a statement Tuesday. The price represents a 5% discount to Monday’s closing price.Morgan Stanley is the sole book-running manager for the offering that allows underwriters to buy an additional 2.64 million shares, the statement said. Bloomberg reported the share sale plan earlier.Shares jumped 20% on Monday after the company revealed positive early results from its experimental vaccine for Covid-19, capping off a 309% rally this year.Moderna’s vaccine is seen as one of the most promising candidates for immunization against the pathogen that has sickened over 4.8 million people worldwide and killed over 318,000 since it first emerged in China last December. A successful vaccine is a crucial step toward lifting lockdowns, easing social distancing measures and safely reopening economies gutted by strict containment efforts. The promising results that Moderna reported were just a sample from the small, first study designed to look at the safety of the shot in human volunteers. But they showed no major safety worries – a key first hurdle since a vaccine would be given to millions of otherwise healthy people.“This is a very good sign that we make an antibody that can stop the virus from replicating,” Moderna Chief Executive Officer Stephane Bancel said in an interview Monday. The data “couldn’t have been better.”The biotech firm is moving ahead with plans for a larger test to pick a dose of the vaccine and further study its effectiveness, as well as a phase 3 test that will administer the vaccine to many thousands of patients.The safety profile appeared to be good, Bancel said, and the reactions were typical of vaccines. Three patients who got a high dose of the vaccine had more severe side effects, according to a company presentation. That dose won’t be used in later trials.Side effects seen in the trial included fatigue, fever, muscle pains and headache but all the symptoms resolved within a day.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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