With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

But which ASX dividend shares should you consider buying? Two to look closely at are listed below:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The Charter Hall Social Infrastructure REIT is a real estate investment trust focused on social infrastructure properties. These include specialist use properties with low substitution risk such as childcare centres and government sites.

At the end of the first half of FY 2021, the company had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years. This helped drive solid earnings growth during the half, allow the Charter Hall Social Infrastructure REIT board to increase its fully year distribution guidance to 15.7 cents per share for FY 2021.

Based on the current Charter Hall Social Infrastructure REIT share price, this will mean a yield of 4.5% for investors.

Goldman Sachs currently has a buy rating and $3.45 price target on its shares.

Fortescue Metals Group Limited (ASX: FMG)

Another dividend share to look at is Fortescue. It is one of the world’s largest producers of iron ore, with a number of operations across the Pilbara region in Western Australia.

Fortescue has been tipped to reward shareholders with very generous dividends in the near term thanks to the sky high iron ore price, which has just surpassed US$210 a tonne. This compares favourably to its C1 costs guidance of US$13.50 to US$14.00 per wet metric tonne. And while its lower grade product won’t command the full iron ore price, it will still be generating significant profits on each tonne.

Ord Minnett is very positive on the company and is forecasting fully franked dividends of $3.36 per share in FY 2021 and $2.93 per share in FY 2022. With the Fortescue share price currently fetching $22.65, this will mean massive dividend yields of 14.8% and 12.8%, respectively.

Its analysts have a buy rating and $28.00 price target on the company’s shares.

The post 2 ASX shares tipped to pay bumper dividends in 2021 appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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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The Appen Ltd (ASX: APX) share price has fallen a long way over the last six months. It has dropped just over 50% during that time period. Do brokers believe that the business is currently worth looking at or not?

As a reminder, it’s a business that’s involved in the development of high-quality, human annotated datasets for machine learning and artificial intelligence.

February 2021 saw a sizeable part of the decline of the Appen share price.

What happened with Appen during reporting season?

In February 2021, Appen revealed its FY20 result to investors. It said that revenue was up 12% for the year to $600 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8% to $108.6 million, with statutory EBITDA going up 23%.

The company said that its growing customer base included 136 new customer wins in 2020. There was also a 34% increase in the number of projects with its top five customers.

The committed revenue increased to 31% of the FY20’s second half total, up from 12% in the first half of FY20. Appen also said that Chinese revenue was growing at 60% quarter on quarter.

At the time of the release of the FY20 result, it had provided guidance for the full FY21 for underlying EBITDA to be in a range of $120 million to $130 million. That represented growth of between 18% to 28%.  

Any other updates?

A few weeks ago, Appen updated the market to say that it has been restructured to align its product-led growth strategy with four customer-facing business units – global, enterprise, China and government.

Global will focus on providing data annotation services and products to its major US tech customers. Enterprise will drive growth outside of its global customers by leveraging its product suite to serve new customers and AI use cases. The China and government units will continue to focus on capturing market share in their high-growth markets.

Appen believes that the new leadership structure, together with profit and loss responsibility, will increase visibility of, and accountability for, performance.

The company revealed a trading update along with this restructuring news. It said that its year to date revenue plus orders in hand for delivery in FY21 was approximately US$260 million at the end of April 2021.

Appen also disclosed near the start of May that COVID-19 was impacting some of its customers including online advertising and regulatory pressures such as anti-trust and data privacy. Some customers are switching resources between development projects as they pursue new ‘break-out products’, impacting a few larger programs. It also noted that competitors are “maturing” and that Appen has to maintain its flow of new product features and that it needs to fight harder to stay ahead.

Broker thoughts on the Appen share price

Ord Minnett rates Appen shares as a buy, with a price target of $24.75. That suggests a potential upside of over 90% over the next 12 months if that projection were to come true. The broker thought the May trading update was reassuring, particularly with the consistent underlying EBITDA expectations.

Brokers at Macquarie Group Ltd (ASX: MQG) have been negative on Appen for some time, but it’s currently rated as a hold here, with a price target of $14.70 – over 10% higher than today’s Appen share price.

Using Macquarie’s numbers, Appen is valued at 30x FY21’s estimated earnings.

The post Do brokers think the Appen (ASX:APX) share price is a buying opportunity? appeared first on The Motley Fool Australia.

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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 Appen Ltd. 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.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and $57.00 price target on this mining giant’s shares. The broker believes that BHP is generating significant free cash flow thanks to sky high iron ore prices and expects this to result in generous cash returns for shareholders. And with spot prices well ahead of its forecasts, it suspects that BHP could smash expectations with its results in August. The BHP share price is currently fetching $48.67.

EML Payments Ltd (ASX: EML)

Another note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target slightly on this payments company’s shares to $3.95. Its analysts believe the market is expecting a far worse outcome from its dealings with the Central Bank of Ireland than is likely. In addition, it was pleased with its recent trading update and suspects the company will hit the top end of its guidance range. The EML Payments share price is currently trading at $3.78.

Superloop Ltd (ASX: SLC)

Analysts at Morgans have retained their add rating and lifted their price target on this telco’s shares to $1.33. This follows its announcement to undertake a capital raising to acquire the Exetel business. According to the note, the broker is pleased with its decision to acquire Exetel and sees meaningful synergies from the deal. It also believes it is positive strategically and is expecting it to boost its margins. The Superloop share price is currently trading at $1.05.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments and SUPERLOOP FPO. 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and tumbled lower. The benchmark index fell 0.3% to 7,270.2 points.

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

ASX 200 expected to fall

The Australian share market looks set to extend its decline on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning. This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.4%, the S&P 500 drop 0.2%, and the Nasdaq edge 0.1% lower.

Carsales has major growth opportunity

The Carsales.Com Ltd (ASX: CAR) share price will be on watch today after being the subject of a positive broker note out of Goldman Sachs. It commented: “We believe there is a significant opportunity for CAR to capitalize on its dominant market position and evolve from a listing based advertising platform, into a much more holistic marketplace model […] We estimate that CAR dealer revenues currently represent just 2.7% of the A$5.4bn dealer GP market.”

Oil prices fall

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.5% to US$69.71 a barrel and the Brent crude oil price has fallen 0.3% to US$72.00 a barrel. Weaker than anticipated fuel demand in the US weighed on prices.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) could trade lower today after the gold price weakened overnight. According to CNBC, the spot gold price is down 0.15% to US$1,891.50 an ounce. Traders appear nervous ahead of tonight’s US inflation data release.

Iron ore price rises

The BHP Group Ltd (ASX: BHP) share price could be given a boost today by rising iron ore prices. According to Metal Bulletin, the steel making ingredient has extended its recent gains and was up a further 1.5% to US$212.67 a tonne overnight.

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

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James Mickleboro does not own any shares 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 carsales.com 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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With interest rates likely to remain low for some time to come, the yields on the ASX dividend shares listed below could be even more attractive than normal for income investors.

Here’s what you need to know about these dividend shares:

BWP Trust (ASX: BWP)

The first ASX dividend share to take a look at is BWP. It is a retail property company and the largest owner of Bunnings Warehouse sites across Australia. At the end of the first half, the company had a total of 68 properties which were leased to the home improvement giant.

Bunnings has proven to be the dream tenant for BWP. Thanks to its strong performance over the last few years, despite whatever the economy threw at it, BWP has been able to grow its rental income at a decent rate. This has led to the company’s distribution also growing nicely, much to the delight of income investors.

This year the company’s board plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this equates to an attractive 4.3% dividend yield.

Scentre Group (ASX: SCG)

Things haven’t been quite as positive for this shopping centre operator. Its Westfield properties in Australia have struggled during the pandemic after some retailers were forced to close down and others fought hard for rental reductions.

Positively, the worst appears to be over for the company now and a return to growth could be on the cards.

Goldman Sachs is positive on Scentre, particularly given Australian inflation expectations. It notes that expectations are currently at their highest level since 2015, which is good news for Scentre. This is due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.

In light of this, the broker recently reiterated its buy rating and $3.60 price target on the company’s shares. It is also forecasting a 14 cents per share dividend in FY 2021. Based on the latest Scentre share price, this equates to a 4.9% yield.

The post 2 high yield ASX dividend shares appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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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If you’re wanting to boost your portfolio with a couple of growth shares in June, then you may want to consider the ones listed below.

Here’s why these ASX growth shares have been rated as buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth to look at is Domino’s. It is the largest Domino’s franchisee outside of the United States.

The company currently holds the master franchise rights to the Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, and Denmark. But it may not stop there. Management advised that it is looking at acquisition opportunities. This could include expanding into new geographic locations, increasing its potential market opportunity.

Not that it necessarily needs to. The company currently operates approximately ~2,800 stores in existing markets and sees opportunities to double its network over the next decade.

Combined with its same store sales growth targets, this would underpin strong top line growth for many years to come if executed successfully.

Bell Potter currently has a buy rating and $122.00 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

Another ASX growth share to look at is Zip. This buy now pay later (BNPL) provider has been a very impressive performer over the last few years.

After breaking out of the shadow of its larger rival, it is now becoming a force of its own. This is particularly the case in the United States where its Quadpay business is growing its customer numbers and sales at a rapid rate. This is a big positive given how the US market is estimated to be worth upwards of $5 trillion.

In addition to this, Zip has just extended its total addressable market by expanding into mainland Europe and the Middle East via acquisitions. If these acquisitions are successful, then the company’s growth could be given a huge boost over the 2020s.

Morgans is a fan of Zip. Its analysts currently have an add rating and $10.39 price target on its shares.

The post Why Zip (ASX:Z1P) and this ASX growth share are highly rated by analysts appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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AGL Energy Limited (ASX: AGL) shares were in the red for most of today, rallying to finish the day higher just before the market closed. At the end of trade, the AGL share price was sitting at $9.16 – 0.11% higher than yesterday. The S&P/ASX 200 Index (ASX: XJO) also had a lacklustre day, falling by 0.31%.

The struggling AGL share price came as the energy provider’s Federal Court loss against Greenpeace Australia Pacific hit headlines.

Let’s take a look at AGL’s claims against Greenpeace and the Federal Court’s ruling.

Court rules for Greenpeace

AGL took Greenpeace to court after the climate-focused charity organisation began a campaign against the energy provider. AGL claimed Greenpeace broke copyright laws by using a logo “substantially identical” to AGL’s trademarked and copyrighted logo.

AGL sought an injunction on Greenpeace’s use of its logo and damages caused by the alleged infringement.

Justice Stephen Burley ruled in Greenpeace’s favour late yesterday afternoon.

Greenpeace used a doctored version of AGL’s logo on online banners, street posters, Greenpeace’s parody website, and protest placards, in a campaign against the energy company.

We’re here on the steps of the Federal Court in Sydney to defend our campaign materials calling out AGL as Australia’s largest climate polluter. #auspol #ClimateAction pic.twitter.com/QYCyLbEgiJ

— Greenpeace Australia Pacific (@GreenpeaceAP) June 1, 2021

https://platform.twitter.com/widgets.js

Greenpeace claimed it didn’t break copyright law as it used AGL’s logo’s likeness for parody and satire – which is protected under Australian law. Greenpeace also argued it didn’t commercially benefit from its use of the similar logo.

AGL refuted this, saying Greenpeace used its logo to disseminate information and pressure the company to change its operations.

Justice Stephen Burley ruled that, except for three social media posts, Greenpeace’s use of the logo was justified. He denied AGL’s request for damages. Justice Burley’s ruling stated:

Copyright protects the owner’s interest in the artistic work, it does not provide a mechanism for protecting a copyright owner’s reputation…

Although the ultimate purpose of the Greenpeace campaign is to bring about a change in AGL’s environmental conduct, the satirical message in the impugned materials has only the effect of drawing viewers into the debate about AGL’s environmental impact…

It is not the use of AGL’s logo in the campaign that causes damage, but rather the informational message.

Greenpeace says it will continue to challenge the company to close its coal-burning power stations by 2030.

AGL share price snapshot

2021 has been a tough year for AGL shares.

Currently, the AGL share price is 23.35% lower than it was at the start of this year. It has also fallen 49.25% since this time last year.

The energy company has a market capitalisation of around $5.7 billion, with approximately 623 million shares outstanding.

The post AGL Energy (ASX:AGL) loses Federal Court battle against Greenpeace appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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It certainly has been a volatile 12 months for the Treasury Wine Estates Ltd (ASX: TWE) share price.

Although the wine company’s shares are up 3% over the period, this only tells half the story. In November the Treasury Wine share price was down as much as 34% from where it trades today after China first took aim at the Australian wine sector.

Can the Treasury Wine share price go higher?

According to a note out of Goldman Sachs, its analysts believe the Treasury Wine share price is fully valued now.

This morning the broker retained its neutral rating and $10.60 price target on the company’s shares.

Based on the latest Treasury Wine share price, this price target implies potential downside of ~11% over the next 12 months.

What did Goldman say?

Goldman has been looking into market trends and, while it has seen some encouraging signs in May, it isn’t enough for a more positive rating.

Goldman commented: “Monthly data trends are supportive in the US, with encouraging comments out of recent global peer earnings releases. Chinese data continues to fall off, and in some cases becoming immaterial. TWE took market share in May with a decline of 5.3% against a market down 14%, with both volume and price driving the outperformance.”

“Industry feedback confirms the strong off premise sales; however, the recovery in on premise, particularly in North America, is an emerging trend which could prove beneficial to TWE, given its now reduced mix of commercial ranges and range of premium Californian brands,” the broker added.

Goldman also notes that wine companies are finding markets to export to after being hit with tariffs in China.

It explained: “Chinese imports were down 8.6% in April, although largely driven by plummeting imports from Australia, down -94.8% yoy on a value basis. Despite this, Australian alcohol exports are showing greater resilience, suggesting alternate market focus from industry.”

What would make Goldman more positive?

While Goldman doesn’t see value in the Treasury Wine share price at the current level, that could change in the future.

It advised that it would become more positive if the Australian dollar weakened, there was a faster recovery of trading in its US operations, improvements in the China tariff situation, and evidence of tangible progress on its proposed demerger of Penfolds.

But until then, it will be holding firm with its neutral rating on the Treasury Wine share price.

The post Is the Treasury Wine (ASX:TWE) share price going to lose its fizz? appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 Treasury Wine Estates 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 S&P/ASX 200 Index (ASX: XJO) fell 0.3% today to 7,270 points.

Here are some of the highlights from the ASX:

Brickworks Limited (ASX: BKW)

The Brickworks share price went up more than 10% today after announcing a revaluation profit within it is joint venture industrial property trust. Brickworks’ share is expected to be around $100 million. This is expected to contribute to record underlying earnings before interest and tax (EBIT) of between $240 million to $260 million for FY21, up from $129 million in FY20.

Brickworks also said that its building products divisions in Australia and North America are both expected to record higher EBIT in FY21 in local currency returns. The ASX 200 share is benefiting from a rapid re-opening of the economy across the US, though there’s still uncertainty such as the newly imposed lockdowns in Melbourne.

The Brickworks managing director Mr Lindsay Partridge said:

Since the end of the first half, there has been a number of significant industrial property transactions in western Sydney. The pricing of these transactions has reinforced the strong investor appetite for prime industrial property assets.

Given the number of sales and the steep movement in transaction pricing, an independent valuation of our property trust assets has been completed, and this process has resulted in further compression of capitalisation rates across our portfolio. As such, a revaluation profit of around $100 million will be recorded in the second half, representing Brickworks’ 50% share of the valuation gain.

In addition, property earnings are expected to be boosted further by the completion of developments at Oakdale East, current forecast to occur in July.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price dropped around 2% today after a report into its Darwin Dan Murphy’s store.

According to reporting by the Australian Financial Review, Woolworths has said it will fix its corporate governance and strengthen its engagement with stakeholders before it opens new stores after an independent review.

That review, which was done by Gilbert+Tobin managing partner Danny Gilbert, said Australia’s largest retailer had “failed to take into account the challenges facing Aboriginal communities in the Northern Territory, put profits above public interest, lobbied the NT government for law changes that led to fair processes being ignored, and did not meet the standards expected of a leading corporate citizen when it pursued plans to open the store in the face of overwhelming community opposition.”

The proposed Dan Murphy’s was 10 times larger than the ASX 200 share’s existing BWS store in Darwin.

Woolworths CEO Brand Banducci, according to the AFR, said:

I’d like to apologise…for us not actively listening as much as we should have. Where we need to materially change our governance is how we empower our First Nations team members and our advisory board to have a lot more carriage in terms of their mandate to give us advice. Our commitment is to reflect, to engage and do a much better job of taking First Nations issues into consideration in all our actions going forward. The buck stops with me…I’ve learnt a lot.

Afterpay Ltd (ASX: APT)

The buy now, pay later business was also in the news today.

According to reporting by the Australian Financial Review, the broker UBS thinks that Afterpay’s growth rate in Australia is going to fall a lot later this year as it reaches maturity in its first market.

The broker continues to think that the ASX 200 BNPL business is going to attract more attention from the Reserve Bank of Australia as merchants pay around eight times more than debit cards.

UBS thinks that the Afterpay share price is too high because of rising competition, regulation and uncertainty of the execution of growth plans, as well the high Afterpay valuation. 

The post ASX 200 drops, Brickworks soars, Woolworths falls appeared first on The Motley Fool Australia.

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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, Brickworks, and Woolworths 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 Resolute Mining Limited (ASX: RSG) share price finished the day in the red. This comes after the gold miner provided an update on its revolving credit facility (RCF).

At the closing bell, Resolute shares finished the afternoon at 53 cents, down 2.75%.

What did Resolute announce?

In its statement to the ASX, Resolute advised it has made an early debt repayment of US$20 million. The voluntary repayment was ahead of the first schedule debt instalment and reduces the RCF balance to US$130 million.

The early repayment will have a positive impact on Resolute’s balance sheet, with the company incurring lower interest costs.

Resolute says the $150 million RCF threshold provides management more room to pursue growth opportunities. The remaining US$130 million is not due until March 2023, giving the company plenty of time to service the loan.

In addition, Resolute also has a term loan facility with the first scheduled repayment of US$25 million in September 2021. The company noted it intends to pay the bi-annual instalments of US$25 million, concluding March 2024, with its operating cash flows. Further free cash flows to clear the debt could also be applied in future.

Resolute CEO Stuart Gale commented:

This early repayment strengthens Resolute’s balance sheet and reduces ongoing borrowing costs. Our teams remain focused on improving operational performance and, with that, cash generation. The flexibility of the RCF then provides us with the option to continue repaying debt ahead of maturities with operating cash flow and proceeds from potential non-core asset sales.

Resolute Mining share price review

Resolute shares have lost close to 50% of their value in the past 12 months. Year to date, the share price hasn’t fared much better, down by roughly 33%.

On a positive note though, the gold spot price has begun to regain ground, sitting at US$1,892 per ounce. The gold spot price reached a 52-week high of US$2,070 per ounce in August last year.

Based on valuation metrics, Resolute commands a market capitalisation of about $585 million, with around 1.1 billion shares outstanding.

The post Resolute Mining (ASX:RSG) share price dips on debt update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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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