With the cash rate at a record low of 0.25% and unlikely to increase any time soon, the interest rates offered with term deposits and savings accounts look set to stay lower for longer.

In light of this, I believe income investors ought to consider investing in some of the high quality dividend shares on the ASX in order to generate a sufficient income.

Three that I would buy are listed below:

Fortescue Metals Group Limited (ASX: FMG)

If you don’t mind investing in the resources sector, then Fortescue could be a good option. Iron ore prices have been very resilient during the pandemic, putting Fortescue in a position to deliver another bumper profit in FY 2020. And given the strength of its balance sheet, I suspect the majority of its free cash flow will find its way back to shareholders. Estimating what dividend the iron ore producer will pay is difficult, but most analysts agree that it will be somewhere in the region of a 6% to 7% yield in FY 2021. Not only is this a very attractive yield, but its shares could be a good way of diversifying your portfolio across sectors.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share I would buy is Telstra. Thanks to its ongoing operating cost reductions, improving industry conditions, the arrival of 5G, and the near completion of the NBN rollout, I think Telstra is a great option for income investors right now. In addition to this, it recently reaffirmed its guidance. And while it might decide to be prudent because of the pandemic, I believe its guidance leaves it well-placed to maintain its 16 cents per share dividend in FY 2020. This equates to a fully franked 5.3% dividend yield.

Vanguard Australian Shares Index ETF (ASX: VAS)

A final option for income investors to consider buying is the Vanguard Australian Shares Index ETF. Rather than invest in individual shares, this exchange traded fund gives investors the option to invest in the 300 shares that are listed on the S&P/ASX 300 index through a single investment. This includes the shares above, the big four banks, and dividend favourites such as Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL). While its current yield is likely to be impacted by dividend deferrals and cancellations that have occurred recently, I expect things to return to normal again in FY 2021. At which point I estimate that its units will provide an attractive yield of over 4%.

More reading

• 3 ASX shares to buy as a beginner
• Here’s why the laziest ASX investors end up the richest
• The ASX 200 blue chip shares I would buy with $5,000 after the market crash
• Invest your first $10,000 in these cheap ASX shares today
• Is the Telstra share price a buy?

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

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While the S&P/ASX 200 Index (ASX: XJO) has seen a partial rebound since its lows in late March, I believe there are still some excellent buying opportunities for investors to purchase quality ASX shares at more favourable share prices.

So with this in mind, here are 2 of my top picks right now:

Bapcor Ltd (ASX: BAP)

Leading second-hand car parts distributor Bapcor saw a sharp decline in its share price in the weeks following the market crash that began in late February. While there has been some recovery in its share price since late March, the Bapcor share price is still well below what it was in mid-February. This provides, in my opinion, a good buying opportunity for patient long-term investors.

Bapcor recently provided a trading update, indicating strong company-wide performance during January and February of 2020, with revenue at the end of February up 12.7% year-to-date over the prior corresponding period. While the company performed solidly in March in Australia, New Zealand was more significantly impacted due to harsher lockdown restrictions.

The company’s fundamentals appear to remain strong, and its current expansion into Thailand looks to be very promising. This should provide the company with a useful launching pad for further expansion into Asia in the years to come.

Bapcor’s balance sheet looks to be very solid after its recent capital raising of $180 million to see it through any prolonged downturn caused by the coronavirus pandemic. Also, as lockdown restrictions now look set to begin to be eased in both Australia and New Zealand, business activity is likely to pick up, which I believe could translate to a further uplift in the Bapcor share price.

SEEK Limited (ASX: SEK)

Between mid-February and late March, shares in online employment classifieds business SEEK fell by around 50%. This came as investors reacted negatively to a sharp fall-off in listing volumes across all its markets. In the company’s ANZ and Asia regions, billings were down by as much as 60% during the week ending 29 March.

While there has been some bounce back since then, the SEEK share price is still down by around 26% since its recent high of $23.64 on 14 February.

With lockdown restrictions set to be eased in Australia in the months ahead, and strong encouragement by the government for Australians to return to work, I feel confident that listing volumes will gradually start to ease higher. New Zealand looks likely to follow a similar road to recovery.

I believe that SEEK remains well-positioned to continue to deliver strong revenue and profitability growth over the next decade, due to its entrenched and market-leading position.

More reading

• 3 ASX shares to buy as a beginner
• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• What to watch on the ASX 200 next week
• The ASX 200 blue chip shares I would buy with $5,000 after the market crash

Motley Fool contributor Phil Harpur owns shares of Bapcor and SEEK Limited. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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Once again in 2020 the information technology sector is outperforming the S&P/ASX 200 Index (ASX: XJO).

Since the start of the year, the S&P/ASX 200 information technology index has fallen just 1.8%. This compares to a decline of over 19% by the benchmark ASX 200.

Due to the quality and growth potential of many companies in the tech sector, I expect this outperformance to continue throughout the 2020s.

In light of this, I think having exposure to the tech sector would be a very good thing for a portfolio.

But which tech shares should you buy? Three top tech shares I would buy right now are listed below:

Appen Ltd (ASX: APX)

Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It creates the data that goes into the machine learning models of many of the biggest tech companies in the world. Demand for its services has been growing strongly in recent years due to the increasing importance of artificial intelligence for businesses. This certainly was the case in FY 2019, with Appen smashing expectations with a 42% increase in underlying EBITDA to $101 million. Similarly strong growth is expected again this year and, thanks to the expected increase in spending on machine learning and artificial intelligence over the next decade, I feel it is well-placed to continue its strong form for many years to come.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a fast-growing donor management system provider. The New Zealand-based company’s system includes donor tools, finance tools, and a custom community app which are being used widely in the faith sector in the United States, Canada, Australia, and New Zealand. Demand for its solutions has been growing strongly, even during the coronavirus pandemic. This led to Pushpay delivering a 1,506% increase in EBITDAF to US$25.1 million. The good news is that more strong growth is expected in FY 2021, with management providing guidance for a 91.2% to 107% year on year EBITDAF increase. But it won’t stop there. Pushpay is targeting a 50% share of the medium and large church market in the future. This represents a US$1 billion opportunity and is many times more than the US$127.5 million revenue it posted in FY 2020.

Xero Limited (ASX: XRO)

Another top tech share to consider buying with a long term view is Xero. It is a leading business and accounting software provider which has been growing its market share at a rapid rate over the last few years. This has been driven by the increasing popularity of its high quality software and its expansion globally. The good news is that with less than 20% of the global (English-speaking) addressable market estimated to be using cloud accounting software, it still has a significant runway for growth.

More reading

• What to watch on the ASX 200 next week
• These are the star ASX shares of the week
• These were the best performing ASX 200 shares last week
• Invest your first $10,000 in these cheap ASX shares today
• 3 star ASX shares to buy for the rest of 2020

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. The Motley Fool Australia owns shares of Appen Ltd and Xero. 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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