Stock Pick

  • 3 safe and strong ASX dividend shares to buy right now

    ASX dividend shares

    If you’re looking to invest in dividend shares, then I think the three listed below would be great options.

    This is because, during these uncertain times, these companies look well-placed to continue paying their dividends as normal.

    Here’s why I would buy them for income:

    Rural Funds Group (ASX: RFF)

    Thanks to the quality of its portfolio and long term tenancy agreements, this agriculture-focused property group remains well-positioned to continue growing its distribution during the pandemic and beyond. Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.85% and 6.1%, respectively.

    Telstra Corporation Ltd (ASX: TLS)

    Another option to consider is Telstra. I think the telco giant is a great income option due to its generous yield and defensive qualities. The latter has been on show in FY 2020, with Telstra one of only a handful of companies that has been able to reaffirm its guidance. I believe this guidance positions the company well to maintain its 16 cents per share dividend this year. This equates to a fully franked 5.15% dividend yield. And with its headwinds easing and T22 strategy bearing fruit, I suspect a return to growth could be just a couple of years away.

    Wesfarmers Ltd (ASX: WES)

    A final dividend share to buy could be conglomerate Wesfarmers. It is the company behind the likes of Bunnings, Kmart, Catch, and a wide range of industrial and chemical businesses. It also has a sizeable cash balance which looks likely to fund acquisitions in the near future. Combined, I believe Wesfarmers has a solid and diverse business which is likely to deliver growth in earnings and dividends whatever economic cycle we are in. At present I estimate that its shares offer a FY 2021 dividend yield of approximately 4%.

    And here is another dividend share which looks well-positioned to grow strongly during the pandemic. This could make it a must buy for income investors..

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

    The post 3 safe and strong ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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  • 5 things to watch on the ASX 200 on Wednesday

    ASX share

    On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its strong form and charged higher again. The benchmark index climbed 1.8% to 5,559.5 points.

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

    ASX 200 expected to drop lower.

    The ASX 200 looks set to end its winning streak on Wednesday. According to the latest SPI futures, the benchmark index is expected to open the day 1.5% or 82 points lower. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones fall 1.6%, the S&P 500 drop 1.05%, and the Nasdaq index slide 0.55% lower.

    Sydney Airport update

    The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be on watch this morning when it provides the market with its latest update. Sydney Airport’s update will reveal the full extent of the impact of the pandemic on its operations. The market will no doubt be also looking for commentary regarding how quickly it expects travel markets to rebound.

    Oil prices mixed.

    Energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.7% to US$32.36 a barrel and the Brent crude oil price has fallen 0.7% to US$34.55 a barrel. Brent crude oil pushed higher on demand hopes.

    Gold price rebounds.

    Gold miners such as Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) could be on the rise today after the gold price rebounded. According to CNBC, the spot gold price stormed 0.9% higher to US$1,749.50 an ounce. Traders were buying the precious metal amid concerns that recessions are coming in many major economies.

    Computershare business update.

    The Computershare Limited (ASX: CPU) share price could be on the move today after the release of a business update yesterday evening. According to the release, the majority of the share registry company’s underlying businesses are operating resiliently during the pandemic. It has reaffirmed its management earnings per share guidance of a 20% decline.

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

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

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  • Stocks Fall After Moderna Vaccine Study Questioned: Markets Wrap

    Stocks Fall After Moderna Vaccine Study Questioned: Markets Wrap(Bloomberg) — U.S. stocks fell for the first time in four sessions after reports circulated that Moderna Inc.’s vaccine study, which was credited in part for Monday’s rally, didn’t produce enough critical data to assess its success. Crude oil and Treasuries gained.The S&P 500 and Nasdaq Composite turned negative in the last hour of trading, while the Dow Jones Industrial Average extended its losses. Equities had fluctuated much of the day after optimism over the drug as a potential coronavirus vaccine sent the S&P up the most Monday in almost six weeks. Crude oil rose for a fourth day.“We’re going to continue to see volatility because every day the market’s taking any little piece of information it has about things and prices it in,” said Peter Mallouk, president and chief investment officer of Creative Planning. “Every day it’s taking every little piece of information and it’s instantly pricing it in. Everything else is a derivative of Covid-19 now.”Earlier, Federal Reserve Chairman Jerome Powell reiterated during a Senate hearing that the central bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the coronavirus pandemic.The Stoxx Europe 600 Index retreated as investors showed little reaction to both news of a $546 billion recovery fund for the region and a surprise jump in German investor confidence. European government bonds were mixed. Sterling strengthened after the U.K. announced plans for 30 billion pounds ($37 billion) in tariff cuts after Brexit.Riskier assets had started the week on the front foot after the Moderna news fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism as they continue to monitor efforts to both contain the pandemic and restart economies.“A vaccine would be a bullish game changer, and stocks reacted accordingly,” Tom Essaye, author of “The Sevens Report” newsletter, wrote in a note. “But one day doesn’t make a sustainable move.”Headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange.Asian equities rallied, tracking the big gains on Wall Street from a day earlier.These are some of the main moves in markets: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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