• Is it now a good time to buy Webjet (ASX:WEB) shares?

    A man sits on a suitcase with his head in his hands as a plane flies overhead

    Is now a good time to consider buying Webjet Limited (ASX: WEB) shares despite all of the COVID-19 impacts? The Webjet share price has been volatile over the last 16 or so months.

    It’s down around 6% from Thursday. Webjet has fallen 21% since 18 March 2021. The ASX travel share is still down around 50% from its pre-COVID-crash price.

    A recovery halted in its tracks?

    Less than two MONTHS ago, the business released its FY21 result.

    In that REPORT, the company said that the financials reflected the continued impact of COVID-19 on the global travel industry.

    But the company pointed to some shorter-term and longer-term positives.

    It said that cost reductions were underway in all businesses and are expected to deliver 20% lower costs across the group once the business returns to scale.

    Webjet also said that its online travel agency (OTA) profitability continues to improve which underscored the scalability of the business model, according to management. Its market share continued to increase and the FY21 second half earnings before interest, tax, depreciation and amortisation (EBITDA) margin was back above 30%.

    As markets reopened, businesses were rebounding quickly. As at April 2021, Webjet OTA Australian domestic bookings were 95% of the level of April 2019 levels. WebBeds USA total transaction volume (TTV) was at 83% of April 2019 levels. Online Republic bookings were 48% of April 2019 levels.

    Management also said that WebBeds is committed to emerging as the number one global business to business provider, taking advantage of new revenue opportunities. Transformation initiatives are on track to reduce costs by at least 20% when back at scale. It’s now targeting revenue to be 8% of TTV, costs to be 3% of TTV and EBITDA to be 5% of TTV. That translates to an EBITDA margin on revenue of 62.8%.

    But Sydney and NSW are now being impacted by restrictions and lockdowns. Sydneysiders are limited to exercise within 10km or within their local government area (LGA). There have also been restrictions imposed in recent weeks in Melbourne, Perth and Brisbane.

    Time to look at the Webjet share price?

    One of the latest brokers to have their say on Webjet is Morgan Stanley. It has a price target of $4.30 on the business, which suggests a potential decline of more than 10% over the next 12 months if the broker is proven right. But the rating is currently a hold.

    Morgan Stanley said that Webjet is being hurt by these COVID restrictions and it delays the domestic recovery. The summer in the northern hemisphere is also being impacted.

    The post Is it now a good time to buy Webjet (ASX:WEB) shares? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Webjet right now?

    Before you consider Webjet, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

    The online investing service he’s run for nearly 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 are better buys.

    *Returns as of May 24th 2021

    More reading

    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 Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    from The Motley Fool Australia https://ift.tt/2UCj39A

  • 3 ASX 200 shares named as buys

    asx buy

    Looking for some ASX 200 shares to add to your portfolio? Then take a look at the three listed below.

    Here’s why they are rated as buys currently:

    Aristocrat Leisure Limited (ASX: ALL)

    The first ASX 200 share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. The last 12 months have been difficult for Aristocrat but it has bounced back strongly and looks well-positioned for growth. Especially now both its pokie machine and digital businesses are pulling together again. Citi is a fan of the company. It has a buy rating and $46.00 price target on its shares.

    REA Group Limited (ASX: REA)

    REA Group could be an ASX 200 share to consider. It is the leading player in real estate listings in the Australian market. This is a great position to be right now thanks to the housing market boom, which is underpinning solid listings growth. In addition to this, cost cutting, new revenue streams, price increases, and acquisitions look set to give its sales and earnings a boost in the coming years. Goldman Sachs is very bullish on REA Group. It recently put a buy rating and $198.00 price target on its shares.

    ResMed Inc. (ASX: RMD)

    Another ASX 200 share to look at is ResMed. It is one of the world’s leading medical device companies with a focus on sleep disorders. ResMed has been tipped for further strong growth over the 2020s thanks to its enormous addressable market, its industry-leading technology, and its digital health ecosystem. In respect to the latter, the company’s investment in digital health have given it an advantage over much of the competition and puts it in a strong position to benefit from the shift to home healthcare. Macquarie currently has an outperform rating and $34.85 price target on its shares.

    The post 3 ASX 200 shares named as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 recommended ResMed. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    from The Motley Fool Australia https://ift.tt/3wFo8LT

  • These were the worst performing ASX 200 shares last week

    Red wall with large white exclamation mark leaning against it

    It was a disappointing five days for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index ended the period 35.3 points or 0.5% lower at 7,273.3 points.

    While a good number of ASX 200 shares tumbled last week, some fells more than most. Here’s why these were the worst performers on the benchmark index:

    PolyNovo Ltd (ASX: PNV)

    The PolyNovo share price the worst performer on the ASX 200 last week with a 13.4% decline. This was despite there being no news out of the medical device company. However, the PolyNovo share price has been under a lot of pressure in 2021 due to concerns over slowing sales late in the first half. This latest decline means its shares are down 40% since the start of the year.

    Nine Entertainment Co Holdings Ltd (ASX: NEC)

    The Nine share price wasn’t far behind with a 10.8% decline. This decline may have been driven by a broker note out of Macquarie. Last week the broker downgraded the entertainment company’s shares to a neutral rating and slashed the price target on them to $3.00. The broker made the move on valuation grounds and due to concerns over short term headwinds.

    Clinuvel Pharmaceuticals Limited (ASX: CUV)

    The Clinuvel share price was a poor performer and sank 10.1% over the five days. Investors were selling this biopharmaceutical company’s shares following the release of a change of director’s interests notice. That notice reveals that the company’s CEO, Philippe Wolgen, has sold 122,675 shares on-market recently. Dr Wolgen received a total consideration of approximately $3.75 million.

    Appen Ltd (ASX: APX)

    The Appen share price was out of form and dropped 9% last week. This decline appears to have been caused by news that a major shareholder has been selling down its holding shortly after building it up. According to a ceasing to be a substantial holder notice, the Capital Group Companies has been selling a significant number of shares just a month after buying them. Its most recent sale involved 583,170 shares for just a touch over $8 million on 1 July.

    The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

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

    from The Motley Fool Australia https://ift.tt/3k4twW2

  • How to make a yearly income of $50,000 from ASX shares

    A money jar filled with coins, indicating an investment return from an ASX dividend share

    It is possible to create a yearly income of $50,000 of dividends from ASX shares, if compound interest can be utilised.

    Compound interest can help

    One of the smartest people to ever live, Albert Einstein, once reportedly said the following quote about compound interest:

    Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it.

    Compound interest can build and build like a snowball rolling down a hill. It’s where interest earns interest, which earns interest in the following year.

    Here is an example of how compound interest can grow money:

    If there is an interest rate of 5%, then $100 will give an investor $5 after the first year. But if the investor leaves that $100 for a decade and it grows at the 5% interest rate whilst re-investing, it would reach $163. If you’re wondering how long the $100 would take to double to $200, it would be less than 15 years.

    But shares’ historical long-term returns haven’t been around 5%. It has been stronger. Over the decades the ASX’s average return per annum has been approximately 10% per annum.

    According to Vanguard, Australian shares have produced returns of 9.8% per annum since 1970.

    Compound growth

    Investors can play around with a compound interest calculator to play out various scenarios with money. Moneysmart may have one of the leading calculators.

    If an investor put $10,000 into the ASX share market and it returned 10% per annum over the next two decades then it would turn into just over $73,000 over the next 20 years. That is just with the initial $10,000 – no further additions of capital.

    Plenty of people are regularly investing, even if they don’t think of it that way. Most employees make quarterly (or more regular) contributions into their superannuation fund. People are also able to make regular investments outside of their super fund.

    If that same investor put in the $10,000 at the start and then invested $200 every month for the next two decades, with the ASX share market making returns of 10% per annum, then it turns into $225,000 over two decades.

    Investors can play around with all the different potential scenarios – perhaps with a bigger upfront capital amount, or with higher monthly investing contributions.

    If the investor put in $1,000 a month instead of $200 a month then they’d have $832,650 after that two decade period.

    How does the $50,000 target of yearly dividends come in?

    If an investor gives the portfolio a long enough time and makes regular contributions for a while, then the portfolio could grow into a large size. The portfolio can generate dividends each year.

    For example, if a 25-year old decided to invest $1,000 a month into the ASX share market over the next 25 years until they were 50 and the share market returned 10% per annum then it would turn into a portfolio worth $1.18 million.

    If the portfolio were invested in ASX shares that had an overall dividend yield of 4.5% then it would generate $53,107 of annual dividends (more than the $50,000 needed).

    The Australian taxation system gives dividend investors a unique bonus with franking credits as a result of paying corporate tax.

    The Australian Taxation Office (ATO) states:

    Dividends paid to shareholders by Australian resident companies are taxed under a system known as imputation. This is where the tax the company pays is imputed, or attributed, to the shareholders. The tax paid by the company is allocated to shareholders as franking credits attached to the dividends they receive.

    If you are an Australian resident, it will “reduce your tax liability from all forms of income (not just dividends) and from your taxable net capital gain” and/or “refund any excess franking to you after any income tax and Medicare levy liabilities have been met.”

    What it means is that investors receive a higher after-tax dividend yield from ASX shares compared to international shares.

    But investors would need to work out what yield and portfolio value they are looking for. A $1 million portfolio with a 5% yield would generate the $50,000 annual dividend target. However, a yield of 4% would need a larger portfolio yield.

    The hardest decision might be finding which ASX shares to choose.

    The post How to make a yearly income of $50,000 from ASX shares appeared first on The Motley Fool Australia.

    These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

    Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

    Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

    Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

    Returns As of 15th February 2021

    More reading

    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 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.

    from The Motley Fool Australia https://ift.tt/3AJSxvA

  • 5 best ASX media shares of financial year 2021

    rising ASX share price represented by paper plane made from news paper

    The ASX is home to a number of big and small-name media shares, and we’ve found the 5 best performers of the 2021 financial year.

    Shareholders of these entertainment, marketing, and news companies, get ready to celebrate!

    5 best ASX media shares of FY21

    For simplicity’s sake, we’ve narrowed this list down to ASX media shares with market capitalisations higher than $100 million.

    Seven West Media Ltd (ASX: SWM)

    The Seven West Media share price was best in class in the 2021 financial year, gaining a whopping 365%.

    Its share price started the financial year at just 9.1 cents but, by its end, it was trading at 46.5 cents.

    Seven West owns the West Australian newspaper and Channel Seven free-to-air television stations.

    Seven West was one of many ASX media companies hit hard by Facebook Inc‘s (NASDAQ: FB) ban on Aussie news.

    However, Seven was the first media company to claw its way out of the social media-meet-government pit, quickly making deals with some of the internet’s biggest players. First, with Alphabet Inc (NASDAQ: GOOGL), and later with Facebook.

    Nine Entertainment Co Holdings Ltd (ASX: NEC)

    The Nine Entertainment share price also did well in the financial year just gone. It gained an impressive 110%.

    Having opened the financial year at $1.38, shares in Nine finished it trading for $2.91.

    Nine is the definition of a media conglomeration. It owns the Channel Nine network, the Macquarie Radio network, the Stan streaming platform, and former Fairfax newspapers including The Sydney Morning Herald, The Age, and the Australian Financial Review.

    In February, Nine reported its profits had doubled, and then in March, it announced its new CEO.

    Like many other media companies, Nine penned deals with Google and Facebook over the financial year. However, Nine didn’t announce the deals until June.

    News Corporation Class B Voting CDI (ASX: NWS)

    Despite a barrelling of bad news, the News Corp share price gained 87% in the financial year just been. Its shares began the period swapping hands for $17.11 and finished the year trading at $32.16.

    The conglomerate owns a multitude of newspapers and media titles including The Australian, News.com.au, The Daily Telegraph, Herald Sun, and The Courier-Mail.

    It started the financial year at a low point, recording a net income drop of 919% before its proposed buyout of Foxtel was rejected.

    Luckily, a series of more positive quarterly reports kept the market feeling positive about the Murdoch-owned entity.

    News Corp was quick to make its deal with Facebook in March, just 10 days before it announced it was to acquire Investor’s Business Daily for $361 million.

    oOh!Media Ltd (ASX: OML)

    Ooh!Media shares grew by 78% during the year ended 30 June 2021 – its share price went from 91 cents to $1.75.

    Ooh!Media specialises in ‘out of home’ advertising products such as billboards, transport advertising, and digital media. It also holds media brands Junkee and Punkee, and clients such as American Express Company (NYSE: AXP) and Netflix Inc (NASDAQ: NFLX).

    Impressive half-year and quarterly reports, as well as a positive trading update each saw oOh!Media shares increasing over the financial year.

    IVE Group Ltd (ASX: IGL)

    Finally, IVE Group’s share price made it onto this list after gaining 69% in the 2021 financial year.

    On 30 July 2020, its share price closed at 80 cents. Exactly 12 months later, it finished at $1.45.

    IVE Group is a print and marketing communications company that specialises in print, mobile, and interactive media. Examples of its work include catalogues, magazine printing, and marketing materials.

    Over the financial year just been, the company lost between $35 million and $40 million of annual income when Coles stopped distributing its catalogues. Then, it divested its telemarketing business.

    However, it also won a 5-year contract worth more than $100 million annually and began an on-market share buy-back.

    Finally, it released a positive business update and earnings guidance in late May.  

    The post 5 best ASX media shares of financial year 2021 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Facebook, and Netflix. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, Netflix, and oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    from The Motley Fool Australia https://ift.tt/3ALIohW

  • It has been a big past year for the ANZ (ASX:ANZ) share price

    city building with banking share prices, anz share price

    The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has gone up more than 50% over the last year.

    Indeed, it has actually risen by 51.5% over that 12 month period.

    It has substantially outperformed the S&P/ASX 200 Index (ASX: XJO) over that same timeframe. The ASX 200 has gone up by around 23% in the last 12 months.

    Recent results

    Last year, at the end of October 2020, the big four ASX bank announced a FY20 result that was heavily impacted by the effects of COVID-19 on the economy.

    ANZ reported statutory profit after tax of $3.58 billion, down 40%. Continuing cash profit was down 42% to $3.76 billion.

    The big bank said in that FY20 reported that its total provision charge was up 244% to $2.74 billion.

    ANZ’s board decided to reduce the annual dividend by $1 per share to $0.60 per share.

    At the time, the big bank said that it wasn’t going to wait for the next event to happen. ANZ said it was well placed to respond to the opportunities that were emerging as a result of accelerated structural shifts in the economy.

    The ANZ share price has risen 45% since the release of the full year result.

    But the latest result was actually the FY21 half-year result.

    ANZ compared the first half of FY21 against the last six months of FY20. Statutory profit after tax rose 45% to $2.94 billion, whilst continuing cash profit increased 28% to $2.99 billion. However, profit before credit impairment, tax and significant items dropped 4%.

    The HY21 result saw a total provision net release of $491 million. Despite ongoing uncertainty, the collective provision release is a result of the improving economic outlook over the course of the half, as well as some loan volume reductions. The bank explained that home loan and small business customers have behaved prudently by building savings buffers through the half.

    The major bank doubled its half-year dividend to $0.70 per share.

    ANZ CEO Shayne Elliot said:

    ANZ is in a strong position both financially and operationally. We are well capitalised and our disciplined approach to costs over many years has us well placed to invest in opportunities to grow our business in targeted segments. The work to digitise core processes and platforms at pace and this will be more visible to customers towards the end of the year.

    Is the ANZ share price worth looking at?

    One of the latest broker ratings on ANZ shares came from Morgans. It has a price target of $34.50, which suggests a potential rise of the share price of more than 20% over the next 12 months (if Morgans is right).

    The broker thinks that ANZ is good value with a good balance sheet and improving costs.

    Morgans thinks that ANZ shares are priced at 11x FY22’s estimated earnings with a projected FY22 grossed-up dividend yield of 8.4%.

    The post It has been a big past year for the ANZ (ASX:ANZ) share price appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 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.

    from The Motley Fool Australia https://ift.tt/3yHS8Ih

  • These were the best performing ASX 200 shares last week

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    The S&P/ASX 200 Index (ASX: XJO) was out of form last week and ended the period 35.3 points or 0.5% lower at 7,273.3 points.

    Although a good number of shares dropped lower last week, some managed to defy the odds and push higher. Here’s why these were the best performing ASX 200 shares over the five days:

    Sydney Airport Holdings Pty Ltd (ASX: SYD)

    The Sydney Airport share price was the best performer on the ASX 200 last week with a 33% gain. The airport operator’s shares took off early in the week after it received an $8.25 cash per share takeover offer from a consortium of infrastructure investors. This offer represents a 42% premium to its last close price at the time. Sydney Airport continues to assess the offer but notes that it has been made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price.

    Resolute Mining Limited (ASX: RSG)

    The Resolute Mining share price was some way behind as the next best performer with a gain of 13.9%. This was despite there being no news out of the gold miner and it being a relatively subdued week for the rest of the gold industry. Though, with its shares down by around 50% since this time last year, some investors may believe they were in the bargain bin.

    Perenti Global Ltd (ASX: PRN)

    The Perenti Global share price was on form and charged 13.2% higher last week. This follows a couple of positive announcements last week for the engineering company. One of those was that its Barminco business has finalised a $280 million four-year contract with Panoramic Resources Limited (ASX: PAN). The contract is for development and production works at the Savannah Nickel Project in the Kimberley region of Western Australia.

    A2 Milk Company Ltd (ASX: A2M)

    The A2 Milk share price was back on form and jumped 10.4% over the five days. Last week the New Zealand Overseas Investment Office issued its consent to the infant formula company’s proposed acquisition of a 75% interest in Mataura Valley Milk. Management expects the acquisition of the dairy nutrition business to provide A2 Milk with the opportunity to participate in nutritional products manufacturing and give it supplier and geographic diversification. It also expects the deal to strengthen its relationship with key partners in China.

    The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    from The Motley Fool Australia https://ift.tt/3yG3uwd

  • The 5 best ASX real estate shares of the 2021 financial year unmasked

    illustration of three houses with one under a magnifying glass signifying mcgrath share price on watch

    ASX real estate shares delivered some outsized returns to patient shareholders over the 2021 financial year (FY21). At least, these top 5 ASX real estate shares certainly did.

    From 1 July 2020 through to 30 June 2021 the All Ordinaries Index (ASX: XAO) gained 25%.

    The index is unlikely to achieve that kind of performance during ordinary times. But these pandemic days are far from ordinary, with shares rebounding from their early 2020 viral selloff through much of FY21.

    So too, we witnessed with the best performing ASX real estate shares. They continued their strong recovery through the financial year just past, far outpacing the returns from the All Ords.

    So, without further ado…

    Sunland Group Limited (ASX: SDG)

    Topping the list of best performing ASX real estate shares in FY21 is Sunland Group. Over the financial year, the Sunland share price soared 109.4%, more than 4 times the gains delivered by the All Ords.

    20 October was a standout day for Sunland. After the company reported it intended to sell some of its non-core assets and return the proceeds to shareholders, the Sunland share price closed the day up a phenomenal 47%.

    Headquartered in Queensland, the property development and construction group listed on the ASX in February 1995.

    Sunland closed the financial year trading at $2.45. With some 136.9 million shares, that gave Sunland a market cap of $319.8 million. The company (at current prices) pays a 6.3% dividend yield, 100% franked.

    Home Consortium Ltd (ASX: HMC)

    The second best performing ASX real estate share on the All Ords is Home Consortium, with a share price gain of 81.3% in FY21.

    The internally managed property group is focused on ownership, development and management.

    Shareholders have been rewarded by some strategic acquisitions over the year. That includes $133 million of new real estate assets acquired in May to help launch HealthCo, its pending real estate investment trust (REIT).

    Home Consortium closed FY21 trading at $5.44 per share. With just over 290 million shares outstanding, that gave it a market cap of $1.6 billion. The REIT pays a dividend yield of 2.4%, fully franked.

    Lifestyle Communities Limited (ASX: LIC)

    Making the list at number 3 is Lifestyle Communities, with shares closing the financial year up 69.7%.

    As the name suggests, the company develops and manages independent living communities for senior citizens. It’s also involved in lifestyle homes with sports and entertainment facilities.

    Lifestyle Communities had been trading on the ASX since December 1998. It finished FY21 at $5.61 per share, giving it a market cap of $1.6 billion. The company pays a slender dividend of 0.4%, 100% franked.

    Arena REIT (ASX: ARF)

    Moving on to the fourth best performing ASX real estate share in the financial year just past, we have Arena REIT. Arena’s share price gained 62.2% over the 12 months.

    The REIT listed on the ASX in June 2013 and mostly invests in childcare, healthcare and government tenanted properties.

    Arena closed the year at $3.60 per share. With roughly 343.6 million shares outstanding, that gave it a market cap of $1.3 billion.

    Centuria Capital Group (ASX: CNI)

    Rounding off the list of top ASX real estate shares to hold in FY21 is Centuria Capital, with a share price gain of 57.5%.

    The real estate funds manager has $16.8 billion of assets under management spanning the office, industrial and healthcare sectors across Australia and New Zealand. Commencing next week, on 16 July, Centuria will be included in the ASX 200.

    Centuria closed the year at $2.76 per share, with a market cap of $2.3 billion. The company pays a 3.5% dividend yield, 38% franked.

    The post The 5 best ASX real estate shares of the 2021 financial year unmasked appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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.

    from The Motley Fool Australia https://ift.tt/3yICpZC

  • 3 blue chip ASX 200 shares named as buys

    a woman whispering a secret to a man who looks surprised

    Looking for a blue chip ASX 200 share or two for your portfolio? Listed below are three that have been given buy ratings recently.

    Here’s what you need to know about them:

    Goodman Group (ASX: GMG)

    The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks. Management notes that it continues to experience strong demand for its properties, which is being driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets. In addition, the company has $9.6 billion of development work in progress, which are expected to underpin further solid income growth over the coming years.

    Morgan Stanley is a fan of Goodman. It recently put an overweight rating and $23.00 price target on its shares.

    REA Group Limited (ASX: REA)

    Another blue chip ASX 200 share to consider is REA. It is the leading player in real estate listings in the Australian market. This puts it in a fantastic position to benefit from the current housing market boom. In addition to this, cost cutting, new revenue streams, price increases, and acquisitions look set to give its sales and earnings a boost. The latter includes the recent acquisition of Mortgage Choice, which is expected to allow REA Group to capture a slice of the mortgage broking market in the coming years.

    Goldman Sachs is very bullish on REA Group. It recent retained its buy rating and lifted its price target to a lofty $198.00.

    SEEK Limited (ASX: SEK)

    SEEK could be a blue chip ASX 200 share to consider. Over the last decade the job listings giant has carved out a dominant position in the ANZ market. So much so, it has a significant lead over its nearest rival, putting it in a great position to benefit from Australia’s strong economic recovery from the pandemic.

    Macquarie recently upgraded the company’s shares to an outperform rating with a $40.00 price target. With unemployment levels tipped to reduce materially over the next few years, it expects job ad volumes to rise strongly.

    The post 3 blue chip ASX 200 shares named as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

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

    from The Motley Fool Australia https://ift.tt/2TQjg9b

  • These 3 ASX 200 shares were the most heavily traded today

    active person star jumping amid city landscape

    The S&P/ASX 200 Index (ASX: XJO) looks set to end the trading week on a decidedly low note. At the time of writing, the ASX 200 is down a very hefty 1.22% to 7,252 points.

    But rather than dwell on that depressing note, let’s instead check out some of the ASX 200 shares that were being the most heavily traded on the share market today:

    3 of the most heavily traded ASX 200 shares today

    Endeavour Group Ltd (ASX: EDV)

    One of the ASX 200’s newest companies, Endeavour is certainly making some waves with its trading volume today. At the time of writing, a relatively large 17.59 million Endeavour shares have swapped hands so far.

    That’s despite no major news or announcements out of Endeavour this Friday, and a relatively flat share price performance. Currently, the Endeavour share price is dead flat, sitting at $6.23 a share. In saying that, Endeavour has managed to largely avoid the market malaise of the broader ASX 200. So perhaps that is spurring trading volumes today.

    Telstra Corporation Ltd (ASX: TLS)

    Telstra is another ASX 200 share that is making moves today. So far, a substantial 17.10 million Telstra shares have changed owners today. Much like Endeavour, the Telstra share price is also dead flat at the time of writing, sitting at $3.75 a share. There is also no major news or announcements from this telco. Telstra is a large company by market capitalisation, but one with a relatively low share price. This tends to support high trading volumes on average.

    It’s also worth noting that the Telstra share price did dip during intra-day trading, falling as low as $3.70 (more than 1%) before recovering back to its current level. Perhaps it’s this movement that has accentuated Telstra’s trading volumes.

    Challenger Ltd (ASX: CGF)

    Challenger is our ASX 200 winner today in terms of trading volume, with 17.61 million Challenger shares having found a new home so far this Friday.

    On Wednesday, we saw the Challenger share price jump a massive 14% on news that a couple of US companies have banded together to acquire a 15% stake in the company.

    Over yesterday and today, we have seen the company retreat from the high point it reached early on Wednesday trading, including a 2.2% drop so far today. It’s probably these events that are still fuelling higher than average trading volumes of this ASX 200 annuities provider.

    The post These 3 ASX 200 shares were the most heavily traded today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

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

    from The Motley Fool Australia https://ift.tt/2UuX4kW