It has been an eventful couple of months for the EML Payments Ltd (ASX: EML) share price.

Since this time in May, the payments company’s shares have lost 26% of their value.

Though, this isn’t a bad outcome considering the EML Payments share price was down as much as 45% at one stage.

Why is the EML Payments share price under pressure?

Investors were selling down the EML Payments share price in May after the release of an update on its PFS Card Services Ireland business. That update revealed that the Central Bank of Ireland raised concerns over the business in relation to Anti-Money Laundering/Counter Terrorism Financing compliance.

This is particularly bad news because EML Payments moved its European operations out of London and into Ireland due to Brexit. This means that this business is responsible for all its PFS Card Services’ European revenue.

Management revealed that 27% of EML Payments’ total revenue is generated by the business. And with the Central Bank of Ireland intending to take action, potentially even removing its financial service authorisation for the European market, the company could lose a big chunk of its revenue.

Where next for its shares?

Where the EML Payments share price goes next could depend on what action the Central Bank of Ireland takes on the PFS Card Services Ireland business.

However, one leading broker has effectively removed the business from its valuation and still believes EML Payments shares are decent value. According to a note out of Macquarie, its analysts have an outperform rating and $3.95 price target on its shares.

While Macquarie may have removed the under-fire business from its valuation, it appears confident that any action will not be as extreme as forcing it to shut down. This could mean a big increase in its valuation should the outcome be much more favourable for EML Payments.

Recent broker upgrade

Another leading broker that appears to agree with this view is RBC Capital. Earlier this month the broker upgraded EML Payments shares to an outperform rating with an improved price target of $4.50.

RBC Capital believes the market is overestimating the impact from any action, creating a buying opportunity for investors. It suspects that a one-off fine and higher compliance costs are the most likely outcome from the investigation.

Overall, the last couple of months have been tough for EML Payments shares. However, if these brokers are to believed, the next two could be much more positive.

The post Two months on, what is the outlook for the EML Payments (ASX:EML) share price? appeared first on The Motley Fool Australia.

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• Here are the 5 worst performing ASX 200 tech shares from FY21
• The EML Payments (ASX:EML) share price zoomed 4% higher today

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. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Totus Capital portfolio managers Ben McGarry and Tim Warner pick a pair of stocks that have tailwinds galore.

Best share #1: The world is rebuilding

MF: What is the best stock buy right now?

Ben McGarry: Fortescue Metals Group Limited (ASX: FMG), in the short term, still looks very good to us.

We’ve owned Fortescue since the Vale dam collapse a couple of years ago, on a supply shortage in iron ore that would be supportive for pricing. 

The supply continues to disappoint. We had the Rio Tinto Limited (ASX: RIO) quarterly out this morning and iron ore volume supplies to the downside. It’s very difficult to see where major new projects are coming online which is quite a different setup to the last time we had an iron ore price slide.

[Fortescue] is about to pay about 9% of the market cap in an interim dividend… a half-year dividend after the next result. That should be paid in early September.

At spot pricing this morning, the iron ore price is at US$220 a ton. You know, these guys get it out of the ground for less than US$20 a ton. So the spot pricing versus where the market has their long-term iron ore forecast, and even near-term iron ore forecast, is way out of whack.

Spot pricing [is] less than 3 times earnings, comes [with] a huge dividend yield, a net cash balance sheet, it has long-life assets, owns its own rail, port and shipping infrastructure, and has a founder that is highly aligned with returning capital to shareholders. 

We actually liked the market structure of iron ore as well. It’s a nice consolidated market globally and, as I said, it’s difficult to see where the supply is coming from over the next few years with most of the world trying to stimulate their economies to grow.

Tim Warner: It fits our process around cash-generative, owner-operator. It still fits in. Whilst it might not be a year-long growth story, it still fits within our process and adds some diversity to the book.

BM: You’ve certainly got super-clean accounting in the major iron ore companies, same as you’ve got in the major tech companies.

Because they’re so cash-generative, they don’t need to dress up their earnings with tricks like amortisation of intangibles, et cetera. It’s a very clean part of the market in terms of reporting and accounting.

Best share #2: The world is having their groceries delivered

MF: If the market closed tomorrow for 5 years, which stock would you want to hold?

TW: HelloFresh SE (ETR: HFG), which is the leader in the meal kit delivery space. 

Our view is that the product is fantastic. It offers convenience, value, and a quality, all-in-one solution. Both Ben and I are users of meal kits and believe that there’s a sticky habit-forming process from using them.

It’s got a long runway for growth. The grocery retail market is an extremely large market, it’s one of the biggest markets in the world. And the online share of that lags a lot of other categories in retail. 

Then, of that, meal kits, it’s only such a small portion of that together. So it’s a very nascent opportunity and huge marketplace, which we like for the long-term growth prospects.

The business model is counter-positioned against the incumbent supermarket retailers. So it structurally has higher margins due to their vertical integration throughout the whole supply chain, from the producer through the brand through the wholesale that they take all the margin — whereas a typical retailer only takes the retail margins at the end. 

[This] makes it extremely hard for the incumbent, legacy retailers to compete in this niche category as it’s a different business model and they’re focusing on trying to just do online retail, not delivering meal kits.

You’ve also got the food wastage, as it’s a B2C business… The customer is ordering in advance, they minimise food wastage, which is like 10% to 12% for retailers, which is a huge cost to their cost of goods. 

One’s a retailer, one’s the manufacturer and we think they’re in this nice sweet market spot where it’s hard for these incumbent guys to compete. But in a huge market where they can just take little bits of share, which is not very meaningful to the large supermarkets — but to them, it’s extremely meaningful.

In the short term, from a market perspective, it looks to be a temporary COVID beneficiary. Everyone thinks that everyone’s just jumped on the meal kit bandwagon because it’s easy and we’re in lockdown. And I’m sure there’s some truth to that but trends that they have been reporting, and what we’re seeing from data, is that we think it’s more of a structural change that’s being accelerated forward.

Pre-COVID, these businesses were profitable, free cash-flow generative, and growing at 30% to 40% top line… So, there was a business model here with structural change happening and we think it’s only being put forward. And then finally it’s a self-funding business model, it receives cash upfront from their customers and pay their suppliers later, doesn’t need to raise any capital and it can deploy that capital at really high rates in return for a long period of time. 

So we like that one on a 5-year buy and hold.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

BM: Look, we did well in the first quarter of 2020 and we got more bullish, but not quickly enough in the second quarter of 2020. 

[We] were sort of surprised by the level of stimulus and with interest rates near zero, a lot of companies with very high valuations took off. The sort of environment in the second half of last year with a lot of monetary and fiscal stimulus and zero interest rates meant that unprofitable companies and companies with less proven and more faddish business models were some of the best performers in the second half of 2020.

We were slow to recognise that and gave up a chunk of the good performance in the start of the year.

MF: Was there a specific company you wished you bought into during that period? 

BM: The two that, you know, surprised us the most were Tesla Inc (NASDAQ: TSLA) and Afterpay Ltd (ASX: APT). And the issue that we should have been quicker to recognise then was that the ‘customer love’ for the product. I think that’s the common denominator.

MF: Do you have a position on Afterpay at the moment? Either short or long?

BM: No, we’ve sort of steered clear. We think the buy now, pay later space is tricky, in that it’s highly competitive. 

The main protagonists are burning a lot of cash. And they’ve been clear beneficiaries of a strong retail environment during the COVID period and the stimulus. 

We’ve got a lot of respect for Afterpay management but it’s just unclear how the industry is going to evolve over the medium term. 

The post The 2 best shares to hang your hat on: fund managers appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to sell today
• Afterpay and Zip were among the most traded ASX shares last week
• Why Afterpay, ANZ, JB Hi-Fi, & Zip shares are pushing higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Amazon, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for some attractive dividend yields to boost your income? Then you may want to look at the ones listed below.

Here’s why these ASX dividend shares have been tipped as great options for income investors right now:

Mineral Resources Limited (ASX: MIN)

If you’re happy to invest in the resources sector, then Mineral Resources could be an ASX dividend share to consider. It is a mining and mining services company with a focus on two hot commodities – iron ore and lithium.

It is thanks to its exposure to these metals that Mineral Resources has been tipped to pay very generous dividends in the near term.

For example, analysts at Macquarie are expecting Mineral Resources to pay fully franked dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $58.14, this will mean fully franked yields of 5.7% and 5.2%, respectively, over the next two financial years.

Macquarie currently has an outperform rating and $73.00 price target on the company’s shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to look at is Super Retail. It is the retail group behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

Super Retail has been experiencing strong sales growth in FY 2021 thanks to a favourable redirection in consumer spending. Combined with margin expansion, this led to the company reporting a 139% increase in half year underlying net profit after tax to $177.1 million.

One broker that is very positive on the retailer is Credit Suisse. It likes the company due to its strong brands and equally strong market position. The broker expects this to underpin dividends of 71.7 cents per share in FY 2021 and then 49.2 cents per share in FY 2022. Based on the latest Super Retail share price of $12.67, this will mean fully franked yields of 5.7% and 3.9%, respectively.

The broker currently has an outperform rating and $14.45 price target on its shares.

The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

• Guess which sector this week’s top performing ASX 200 shares all come from
• Why the Mineral Resources (ASX:MIN) share price is up 39% in 3 months
• 2 ASX 200 mining shares that could be buys
• 2 high quality ASX dividend shares with very big yields
• Why the JB Hi-Fi (ASX:JBH) share price is down 7% this month

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 owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

They are growing quickly and could have very bright futures ahead of them. Here’s why these small cap ASX shares could be worth adding to your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly during FY 2021. So much so, it expects to report full year revenue growth of 43% to 47%. And while Adore Beauty’s growth is likely to moderate in FY 2022 as its cycles strong sales growth during the pandemic, its longer term outlook remains very positive. This is due to its leadership position and the structural shift online for beauty sales.

Audinate Group Limited (ASX: AD8)

Another small cap ASX share to look at is Audinate. It is the leading digital audio-visual networking technologies provider behind the world class Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems, converging all previous connection types into one to deliver vastly superior performance. The solution is also making these systems easier to use, easier to expand, and less expensive to deploy. The number of Dante enabled products manufactured by its customers is now eight times greater than its nearest rival. This makes it the clear industry leader. Audinate has also just entered the video market, with its products being received very well.

Booktopia Group Ltd (ASX: BKG)

A final small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate in FY 2021. For example, during the first half, Booktopia reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. This strong form continued in the third quarter, with the company delivering a 53% increase in quarterly revenue. Management advised that this strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to respond to the growing demand by shipping more books than ever.

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• Here’s why the Audinate (ASX:AD8) share price is up 25% in a month
• Is the Adore Beauty (ASX:ABY) share price a buy?
• Could the Youfoodz (ASX: YFZ) takeover offer indicate a bubble?
• Leading brokers name 3 ASX shares to buy today
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher

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. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited and Booktopia Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some quality S&P/ASX 200 Index (ASX: XJO) shares that might be ideas to think about for dividend income.

It’s pretty tough to find sources of income for capital at the moment because of how low interest rates are right now.

The below two ASX 200 dividend shares could be ones to think about:

Rural Funds Group (ASX: RFF)

Rural Funds is a leading real estate investment trust (REIT) in the agricultural space. It owns a high-quality portfolio of assets that are spread around the country in different states and climactic conditions.

Those farms span the sectors of cattle, almonds, macadamias, vineyards and cropping (sugar and cotton). The properties are predominately leased to large and listed operators such as Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV), Olam, JBS and Queensland cotton.

The business aims to grow its distribution per investors by 4% per annum, which is materially higher than inflation has been over the last several years. It funds this distribution growth through organic rental growth, productivity investments at the farms and the occasional acquisition.

The ASX 200 share recently announced a $100 million equity raising. This will pay for the development of 1,000 hectares of macadamia orchards, acquiring more cattle properties and the acquisition of up to 8,338ML of water entitlements for $38.4 million which are leased to a private farming company for five years, which will boost its adjusted funds from operations (AFFO – the net rent).

Rural Funds is expecting to pay a distribution of 11.73 cents per unit in FY22. At the current Rural Funds share price, it offers a forecast distribution yield of 4.5%.

Brickworks Limited (ASX: BKW)

Brickworks is another ASX 200 dividend share to think about.

It hasn’t cut its dividend in over forty years, which is a very long record when it comes to ASX companies.

Construction materials can be a cyclical industry. It has a number of different subsidiaries across different products including bricks, paving, masonry, roofing, specialised building systems and precast.

It also has a leading market position in brickmaking in the north east of the US after making a few acquisitions before COVID-19.

But it’s other parts of the business’ cashflow that funds the Brickworks dividend each year.

The ASX 200 dividend share has an ultra-long-term cross-shareholding partnership with Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), the investment conglomerate. Brickworks owns around 40% of Soul Patts.

Soul Patts has a diversified portfolio of different assets. The lion’s share of assets are other ASX businesses like TPG Telecom Ltd (ASX: TPG), Brickworks, New Hope Corporation Limited (ASX: NHC), Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG) and Pengana International Equities Ltd (ASX: PIA). It also has investments in private businesses related to agriculture, resources, swimming schools and more.

Soul Patts has been paying Brickworks (and all shareholders) a growing dividend over the last 20 years.

The other part that funds Brickworks’ dividend is its 50% ownership of a quality industrial property trust. That property enterprise is building high-quality buildings that are then leased to really good tenants. Amazon and Coles Group Ltd (ASX: COL) are expected to be two of the newest tenants to move into two huge, high-tech warehouses. Once those warehouses are complete, it’s expected to significantly increase the value and rental income of the trust.

At the current Brickworks share price, it has a trailing grossed-up dividend yield of 3.5%.

The post 2 ASX 200 shares that could be buys for dividends appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops, ANZ up and Afterpay rises
• Why the Elders (ASX:ELD) share price is outperforming today
• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, COLESGROUP DEF SET, RURALFUNDS STAPLED, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price has risen by almost a quarter in the 2021 year to date, but could it be an idea for dividend income?

It has been a strange 12 months for the business. Its share price went under $2.70 at the end of October 2020, but it has risen by 40% since then.

Telstra has been busy making business moves in recent months.

Corporate activity

In March 2021, it announced the next steps in its proposed restructuring to enable it to better realise the value of its infrastructure assets, take advantage of potential monetisation opportunities and create additional value for shareholders.

The business revealed that one of the divisions would be ‘InfraCo Towers’, which would own and operate Telstra’s passive or physical mobile tower assets, which Telstra said it’s looking to monetise given the strong demand and compelling valuations for this type of high-quality infrastructure.

In June 2021, Telstra revealed that it was going to sell 49% of that towers business to a consortium for $2.8 billion. The towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. Those consortium partners include the Future Fund, Commonwealth Superannuation Corporation and Sunsuper.

With that deal, Telstra says it’s able to maximise the overall value for shareholders, maintain control of the assets and agree terms that secure Telstra’s mobile network leadership and competitive differentiation into the future. It will continue to own the active parts of the network, including the radio access equipment and spectrum assets, to ensure it continued to maintain its industry leading mobile coverage and network superiority.

Telstra has entered into a 15 year agreement (with the option to extend) with InfraCo Towers to secure ongoing access to existing and new towers.

The company said it will be investing $75 million to improve connectivity in regional Australia. After that, it plans to return 50% of net proceeds to shareholders. Next month in reporting season, it plans to give more details about the manner of returning those proceeds, including a potential share buy-back in FY22 at its full year result. The rest of the money will be used to reduce debt.

What about the Telstra dividend?

In its FY21 half-year result, it said that the Telstra board expects to pay a FY21 total dividend of 16 cents per share.

One of Telstra’s stated goals is to maximise returns for shareholders. Part of that plan is to pay a fully franked ordinary dividend of 70% to 90% of underlying earnings. It’s also returning around 75% of net one-off NBN receipts to shareholders over time through fully franked special dividends.

The broker Ord Minnett currently rates the Telstra share price as a buy, with a price target of $4.25.

Ord Minnett is expecting the FY21 and FY22 annual dividend to be $0.16 per share. That translates to a grossed-up dividend yield of 6.1%.

The post Could the Telstra (ASX:TLS) share price be a buy for dividends? appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday
• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• Is the Telstra (ASX:TLS) share price good value amid acquisition news?
• ASX 200 drops, Telstra falls, Altium declines
• 2 defensive ASX 200 shares that brokers rate as ‘buys’ this Monday

Motley Fool contributor Tristan Harrison 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index ended the day at 0.45% lower at 7,252.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market looks set to storm higher on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.8% higher. On Wall Street, the Dow Jones rose 1.6%, the S&P 500 climbed 1.5%, and the Nasdaq stormed 1.6% higher.

Quarterly updates

Beach Energy Ltd (ASX: BPT) and South32 Ltd (ASX: S32) shares will be ones to watch this morning when they hand in their quarterly updates. The latter is expected to have been benefitting greatly from a strong rise in aluminium prices.

Oil prices rebound

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Wednesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$67.32 a barrel and the Brent crude oil price is up 1.5% to US$69.54 a barrel. Traders were buying oil on the belief it had been oversold.

JB Hi-Fi shares fully valued

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker was pleasantly surprised by the retail giant’s update. However, Goldman believes the current sales and margin strength is unsustainable and expects earnings declines in FY 2022 and then FY 2023. The broker has a neutral rating and $49.40 price target on its shares.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,810.60 an ounce. Surging COVID-19 cases across the world could be supporting the safe haven asset.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, ANZ up and Afterpay rises
• Why the Elders (ASX:ELD) share price is outperforming today
• Here’s why the Beach Energy (ASX:BPT) share price is in the red today
• Why BHP, HUB24, Qantas, & Santos shares are dropping today
• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday

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 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 Bruce Jackson.

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Exchange traded funds (ETFs) continue to grow in popularity with investors and it certainly isn’t hard to see why.

As well as being an easy way to invest your hard-earned money, they provide investors with opportunities that were unattainable a decade ago.

But given the many options, it can be difficult to decide which ones to buy ahead of others. With that in mind, I have picked out three ETFs that are highly rated right now. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. With cybersecurity continuing to grow in importance for personal and business use, demand for cybersecurity services is increasing and shows no sign of slowing. Particularly given some high profile cyber attacks in recent months. The BetaShares Global Cybersecurity ETF gives investors exposure to this trend by providing access to the leading players in the global cybersecurity sector. This means you’ll be buying a slice of companies such as Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

The index the fund tracks has generated a return of 23% per annum over the last five years.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. This means investors will be buying a slice of the top 500 U.S. stocks through a single investment. Blackrock believes this can be useful for investors seeking to diversify internationally and looking for long-term growth opportunities for a portfolio. Among the companies included in the fund are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

The iShares S&P 500 ETF has provided investors with a return of 17.2% per annum since 2016.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. These are traits that Warren Buffett looks for when he picks his investments. At present, there are a total of 49 US based stocks in the fund. This includes Amazon, Bank of America, Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.

The index the VanEck Vectors Morningstar Wide Moat ETF tracks has generated a return of 19.6% per annum over the last five years.

The post 3 high quality ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that could be worth looking at this weekend
• 2 highly rated ETFs for ASX investors
• Why do some ASX ETFs have dividend yields of 20% right now?
• 2 quality ETFs that could give your portfolio a big boost
• 3 reasons why the iShares S&P 500 ETF (ASX:IVV) could be a great investment

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. owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 0.5% today to 7,252 points.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

The Afterpay share price went up around 1.6%. Afterpay, the buy now, pay later business revealed its money app that it plans to officially launch later this year.

This new money app is going to be called ‘Money by Afterpay’ which will begin its roll out today with an Australian staff pilot, with a full Australian customer launch expected in October 2021.

Afterpay’s money app will offer one daily account with a physical debit card, digital wallet offerings and the ability to make and receive real time payments. This app will be offered with no fees.

It will also come with the ability to open up to 15 different savings accounts with an interest rate of 1% per annum.

The Afterpay executive vice president of new platforms, Lee Hatton, said:

We’ve built upon the trust and love of the Afterpay brand to bring Gen Z and Millennials a money and lifestyle app that’s truly built for them. Combining money management with the BNPL offering will allow us to help customers spend, save and play just by using money as their primary app.

The first release in July is just the beginning for us. We will deliver new and unique features to customers consistently throughout the year and we’ll be nimble enough to quickly act on feedback in near real-time.

JB Hi-Fi Limited (ASX: JBH)

One of the top-performing shares in the ASX 200 today was the electronics retailer.

It released its fourth quarter sales update as well as expectations of its profit numbers for FY21.

In the quarter ending 30 June 2021, JB Hi-Fi Australia saw total sales drop 8.2%, in New Zealand total sales rose 46.9% and The Good Guys total sales declined 1.5% respectively against the FY20 final quarter numbers.

In July 2021, it’s expecting disruption and “variability” to sales as a result of various lockdowns and store closures in places like Sydney and Melbourne.

The company said that for FY21, its preliminary and unaudited numbers showed total sales were up 12.6% to $8.9 billion, earnings before interest and tax (EBIT) grew 53.8% to $743 million and net profit after tax (NPAT) went up 67.4% to $506.1 million. Online sales climbed 78.1% to $1.1 billion, representing 11.9% of total sales.

It also said it managed its gross margins, with strong improvements. This, combined with disciplined cost control and strong sales growth, led to “significant” operating leverage.

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The ANZ share price was one of the few financial businesses in the ASX 200 to be in the green today, rising 0.6%.

ANZ announced yesterday evening that it intends to buy-back up to $1.5 billion of shares on-market as part of its capital management plan.

The ANZ Chair Paul O’Sullivan said:

Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders. After reviewing options, we consider an on-market buy-back to be the most prudent, fairest and flexible method to return capital in the current environment.

Our capital position may allow future capital returns to be considered, however we will continue to focus on balanced and prudent outcomes for all stakeholders.

The post ASX 200 drops, ANZ up and Afterpay rises appeared first on The Motley Fool Australia.

More reading

• $1.5bn buy-back: Is the ANZ (ASX:ANZ) share price a bargain buy?
• Why the Elders (ASX:ELD) share price is outperforming today
• Top-10 ASX dividend share delivers market-thumping share price gains
• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday
• Afterpay and Zip were among the most traded ASX shares last week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re currently looking for growth shares to buy, then you might want to look at the two listed below.

Here’s why these ASX 200 growth shares could be in the buy zone right now:

IDP Education Ltd (ASX: IEL)

The first ASX 200 growth share to look at is IDP Education. It is a provider of international student placement and English language testing services at home and overseas.

The company has recently strengthened its international operations with a key acquisition in India. It has agreed to acquire the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds (~A$240 million).

This transaction is estimated to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis. Management also sees scope for material combination benefits, with estimated run-rate synergies of A$6 million to A$8 million expected to be delivered within 24 months of completion.

And while trading conditions remain tough because of the pandemic, demand is expected to rebound quickly once the situation improves. As a result, analysts at Goldman Sachs believe the company’s growth will accelerate post-pandemic. In addition, the broker sees plenty of opportunities for the company to boost its growth with further earnings accretive acquisitions.

Goldman Sachs currently has a buy rating and $35.00 price target on IDP Education’s shares.

Kogan.com Ltd (ASX: KGN)

Another ASX 200 growth share to look at is Kogan. This ecommerce company was one of the highlights of 2020, but has been the complete opposite in 2021. This has been driven by management failing to predict a sharp slowdown in sales after physical stores reopened, leaving the company with a significant inventory excess.

While this is disappointing, these issues are only expected to be short term. In addition to this, the recent lockdowns across several Australian states could boost sales and help Kogan work through its inventory quicker than expected.

One broker that sees the recent weakness in the Kogan share price as a buying opportunity is Credit Suisse.  It currently has an outperform rating and $17.93 price target on its shares.

Credit Suisse feels that investors should look beyond the short term issues and focus on its long term growth potential. This is thanks to its exposure to the structural shift to online shopping.

The post 2 highly rated ASX 200 growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Kogan (ASX:KGN) share price jumps 6% in a week
• These are the 10 most shorted ASX shares
• 2 ASX shares rated as strong buys by brokers
• Brokers name 3 ASX shares to buy today
• 2 highly-rated ASX growth shares tipped as 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. owns shares of and has recommended Idp Education Pty Ltd and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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