If you’re looking for some top ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here’s what income investors need to know about them:

Accent Group Ltd (ASX: AX1)

The first dividend share to consider is Accent. It is a retail group with a collection of popular footwear-focused store brands.

These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

Accent also recently launched a new brand called 4 Workers. This brand is targeting the niche but lucrative workwear market. This includes clothing and footwear for tradies.

In addition to this, the company has just bolstered its offering with the acquisition of Glue Store. This opens up Accent to the growing street fashion market, complementing its existing businesses.

Bell Potter currently has a buy rating and $3.30 price target on its shares. The broker is forecasting dividends of 11.7 cents per share in FY 2021 and 12.3 cents per share in FY 2022.

Based on the latest Accent share price of $2.83, this represents fully franked yields of 4.1% and 4.3%, respectively.

National Storage REIT (ASX: NSR)

National Storage is one of Australasia’s largest self-storage providers. From over 200 locations across Australia and New Zealand, it tailors self-storage solutions to residential and commercial customers.

National Storage has been growing at a solid clip over the last few years thanks to a combination of organic growth and growth through acquisitions.

The good news is that management sees plenty of opportunities to continue growing in this way in the future. This bodes well for income and dividends over the 2020s.

For now, management expects the company to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. From this, it plans to pay out 90% to 100% to shareholders.

Based on the current National Storage share price, this represents a ~3.7% yield.

The post 2 ASX dividend shares with attractive yields for next week appeared first on The Motley Fool Australia.

More reading

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• 2 top ASX dividend shares with 4%+ yields

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 Accent Group. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Origin Energy Ltd (ASX: ORG)

According to a note out of Ord Minnett, its analysts have retained their buy rating and increased their price target on this energy company’s shares to $5.75. The broker made the move on the belief that electricity prices are improving after a recent downturn. In addition to this, the broker is expecting the APLNG business to generate strong free cash flow. The Origin share price ended the week at $4.72. Ord Minnett’s price target implies potential upside of 22% over the next 12 months.

Sonic Healthcare Limited (ASX: SHL)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $40.00 price target on this healthcare company’s shares. According to the note, although vaccines are being rolled out globally, testing for COVID-19 remains strong. This bodes well for Sonic, which has been benefiting greatly from high testing volumes. As a result, the broker has increased its earnings estimates to reflect this. The Sonic share price was fetching $35.16 at Friday’s close. Credit Suisse’s price target represents potential upside of almost 14%.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Ord Minnett reveals that its analysts have retained their buy rating and $4.10 price target on this telco giant’s shares. According to the note, although rival Vodafone has extended its discounts for another month at least, the broker continues to believe that Telstra’s superior 5G network is underpinning mobile subscriber growth. This may be supportive of ARPU growth in the mobile business in the near term. The Telstra share price ended the week at $3.58. Ord Minnett’s price target implies upside of 14.5%.

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

More reading

• These were the best-performing ASX 200 shares last week
• Got cash to invest? Here are 2 ASX shares that could be buys
• These 3 shares were the biggest gainers of the ASX 200 this week
• 5 ASX shares tipped to pay higher dividends: fund manager
• The 10 ASX dividend shares delivering the highest yields

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 Telstra Corporation Limited. The Motley Fool Australia has recommended Sonic Healthcare 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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Rural Funds Group (ASX: RFF) is a real estate investment trust (REIT) that could be a good option to think about for income.

What does Rural Funds own?

Its property portfolio is focused on agricultural properties around Australia.

At the moment it’s invested in five different farming sectors. Those are: cattle, vineyards, almonds, macadamias and cropping (cotton and sugar).

The agricultural sectors it’s invested in are not fixed. A few years ago it didn’t own any cattle properties. Now, cattle is one of the biggest allocations. Rural Funds used to own poultry assets, but it has divested those properties.

Here are three reasons why Rural Funds could be an interesting ASX dividend share:

Diversification

Its farms are located in multiple states. They are also spread across different climactic conditions. This can help reduce the risks of the portfolio as a whole when looking at the potential downsides of each individual farm. It has at least one farm across most of the Australian states.

Rural Funds doesn’t rely on just one or two tenants. It has a number of large, quality tenants including Select Harvests Limited (ASX: SHV), Treasury Wine Estates Ltd (ASX: TWE), JBS, Australian Agricultural Company Ltd (ASX: AAC), Stone Axe, Olam and Queensland Cotton.

The agricultural REIT has a long weighted-average lease expiry (WALE) of around 11 years. That means that tenants are contracted to stick around for a long time.

Growth

Rural Funds aims to increase its distribution growth of 4% per annum for shareholders. It has been doing this for several years in a row since it listed.

How does it achieve this growth? The income growth is achieved through lease indexation (contracted rental growth), productivity improvements and with the conversion of assets to higher and better use.

Some of the contracted rental growth experiences a fixed 2.5% annual increase, with other farms having rental increases linked to CPI annual inflation growth.

The ASX dividend share has provided a distribution forecast increase of 4% for FY22.

Yield

Rural Funds pays out a fairly high percentage of its rental profit each year to shareholders. That means the Rural Funds distribution yield is relatively high compared to a typical ASX share.

Using the distribution forecast of 11.73 cents per unit in FY22, that puts the forward distribution yield on 4.6%.

The post 3 reasons why Rural Funds (ASX:RFF) could be a really good ASX dividend share appeared first on The Motley Fool Australia.

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• No China? No worries. The Treasury Wine (ASX:TWE) share price lifts 16% in May
• These were the best performing ASX 200 shares in May

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. 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 RURALFUNDS STAPLED and 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $89.50 price target on this banking giant’s shares. The broker has been looking at the capital positions of the big four banks. It believes they all have significant excess capital and suspects that this could mean share buybacks in the near future. Morgan Stanley estimates that Commonwealth Bank could return $5 billion to shareholders with its FY 2021 results. However, while this is positive, it isn’t enough for a change of rating. The broker continues to believe its shares are overvalued. The Commonwealth Bank share price ended the week at $102.52.

St Barbara Ltd (ASX: SBM)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this gold miner’s shares to $1.70. The broker made the move after St Barbara withdrew its guidance for its Simberi operation. Macquarie has downgraded its production estimates for FY 2021 and suspects that its FY 2022 production could be impacted. The St Barbara share price was trading at $1.83 at the end of the week.

Wesfarmers Ltd (ASX: WES)

Analysts at Citi have retained their sell rating and $45.00 price target on this conglomerate’s shares. This follows the release of Wesfarmers’ strategy day event last week. The broker believes that Wesfarmers will need to invest heavily in its retail businesses to position them for medium to long term growth. And while it sees opportunities for Wesfarmers to make value accretive acquisitions, it isn’t pricing these in until they have been made. So for now, the broker believes its share overvalued. The Wesfarmers share price was fetching $55.24 on Friday.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares tipped to pay higher dividends: fund manager
• Why the CBA (ASX:CBA) share price is at record highs
• Is the Wesfarmers (ASX:WES) share price in the buy zone after its update?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 hits another record, Sezzle flies, Wesfarmers falls

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 Wesfarmers 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 looking for ways to boost your income in retirement, then you might want to look at the shares listed below.

These high quality ASX shares could be great options for retirees. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first option to consider for a retirement portfolio is this supermarket giant. It could be a good option due to its solid long term growth prospects, generous dividend policy, and defensive qualities.

Coles has been growing strongly during the pandemic. And while its growth will inevitably moderate now as its cycles heightened sales from a year earlier, Goldman Sachs is positive on its medium term growth.

Its analysts are forecasting earnings per share of 76 cents in FY 2021, 81 cents in FY 2022, and then 89 cents in FY 2023. This is expected to lead to dividends per share of 62 cents, 66 cents, and 73 cents, respectively.

If this proves accurate, it will mean a reliable and growing source of income for investors. Based on the current Coles share price of $17.04, this implies yields of 3.6%, 3.9%, and then 4.3%.

Goldman Sachs currently has a buy rating and $20.50 price target on its shares.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another option to consider for a retirement portfolio is Sydney Airport. This airport operator has been hit incredibly hard during the pandemic, but things are starting to look a lot more positive now.

With domestic travel rebounding strongly, save for the occasional lockdown, Sydney Airport’s terminals are becoming busier by the month. This bodes well for its earnings and dividends in the near term.

And while international travel may take some time to return to normal, that doesn’t necessarily mean you won’t receive a generous yield with its shares.

Goldman Sachs is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $6.12, this will mean yields of 1.4% and 4.6%, respectively.

The broker currently has a buy rating and $6.73 price target on its shares.

The post 2 excellent ASX shares for a retirement portfolio appeared first on The Motley Fool Australia.

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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets.

Demand has been growing strongly in recent years and has continued in FY 2021. For example, during the first half of FY 2021, the company reported a 29.6% increase in revenue to $13.3 million. It then followed this up with a 66% increase in third quarter revenue to $6.9 million.

The good news is that this is still only a fraction of its total addressable market (TAM). Management estimates that its TAM will be worth US$20 billion by 2022. This gives it a very long runway for growth.

Shaw and Partners currently has a buy rating and $1.88 price target on the company’s shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Users then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for its offering has been growing strongly and looks set to continue doing so thanks to favourable industry trends. One of those is teleheath, which management notes is creating a need for this type of technology.

According to management, the company’s TAM is estimated to be US$2.75 billion. This gives it a huge opportunity to grow into over the next decade.

Morgans is a fan of the company. It currently has an add rating and $1.68 price target on the company’s shares.

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The Pointsbet Holdings Ltd (ASX: PBH) share price has been an incredible performer over the last 12 months.

Since this time last year, the sports wagering company’s shares are up 108%.

What is PointsBet?

PointsBet is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services via its scalable cloud-based platform.

It currently operates in the ANZ and United States markets and is generating significant growth in both. For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This was driven by a 137% increase in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.

The good news is the company is still only scratching at the surface of the latter market and looks well-placed to capture a growing slice of it.

This is thanks partly to its transformational five-year media partnership with NBC Universal. That deals sees PointsBet become the official sports betting partner of NBC Sports in the United States. Management notes that this partnership provides PointsBet with access to leading national and regional television and digital assets, with the largest sports audience of any US media company, accessing over 184 million viewers.

Can the PointsBet share price go higher?

One leading broker that believes the PointsBet share price still has a long way to run is Bell Potter.

A recent note reveals that its analysts currently have a (spec) buy rating and $20.10 price target on its shares. Based on the latest PointsBet share price of $12.50, this implies potential upside of 61% over the next 12 months.

Bell Potter is particularly positive on its opportunity in the United States.

Its analysts commented: “With partnership agreements in 14 US states, plus an online model requiring no land-based casino / racetrack partnership in Tennessee and Wyoming, PBH has set its target to increase its number of live US states from 6 to 18 plus Ontario by Dec 2022.”

“By Dec 2021, PBH sees the potential to be live in West Virginia, Tennessee, Virginia, Maryland, Arizona and Ohio, while during calendar year 2022 it is targeting a launch in Pennsylvania and Wyoming, as well as New York, Kansas, Missouri, Mississippi and Kentucky (subject to legislation). Including a launch in Ontario, could potentially see PBH operating in North American markets with a combined population of over 153m.”

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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

ARB Corporation Limited (ASX: ARB)

This 4X4 parts company has been a great place to invest over the last decade. Over the period, the company has grown its sales, earnings, and dividend at a consistently solid rate. This has been driven by strong demand for its products in domestic and export markets, which is being underpinned by the growing popularity of SUVs. This positive form has led to the ARB share price generating an average total return of 19.3% per annum since 2011. This would have turned a $20,000 investment into just over ~$117,000 today.

CSL Limited (ASX: CSL)

While the last 12 months have been underwhelming for the CSL share price, that hasn’t stopped it from absolutely smashing the market over the last decade. The biotherapeutics company’s shares have been charging higher since 2011 thanks to its strong sales and earnings growth. This has been driven by increasing demand for its immunoglobulins, the acquisitions of the Novartis influenza vaccines business, and its high level of investment in research and development activities. The latter has ensured that CSL has a pipeline of potentially lucrative products. Over the last 10 years, CSL’s shares have generated an average total return of 24.9% per annum. This would have turned a $20,000 investment into almost $185,000.

REA Group Limited (ASX: REA)

Finally, another company which has impressed over the last decade is this property listings company. REA Group has been able to grow its earnings at a strong rate over the last 10 years thanks to the structural shift to online listings and the dominance of its realestate.com.au website. This has been supported by its growing international operations. This has ultimately led to the company’s shares providing investors with an impressive 30% per annum total return. This means that a $20,000 investment in REA Group’s shares in 2011 would now be worth $275,000.

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There are plenty of ASX shares that are growing their business. A few might be worth investigating for their potential long-term growth.

Businesses that are smaller may have the potential to grow more than blue chips because they’re starting from a smaller level.

Here are two to think about:

MNF Group Ltd (ASX: MNF)

MNF describes itself as a communication software company headquartered in Sydney Australia. Its platform enables companies like Zoom, Google and Twilio to launch and scale communication services without constraints. It offers a number of different communication options for businesses to take advantage of.

The MNF share price has fallen by around 15% since 23 April 2021. That’s despite the business reporting growth.

In the FY21 half-year result, it saw phone numbers on the network increase by 24% year on year to 5.1 million. This was due to new orders from existing wholesale customers and provides management confidence in future growth as each new number provides a potential future revenue stream.

The growth in phone numbers supported a 15% increase in recurring revenue to $55.6 million and a 20% increase in recurring gross margin to $33.4 million. Underlying profit went up 30% to $8.4 million. It’s experiencing rising profit margins.

Looking ahead to future growth, management said that the expansion into Singapore is progressing well. It has commenced technical trials with three major global customers. Those trials are the final step before going live in the Singaporean market which it expects to occur later this financial year.

The ASX share wants to continue growing its market share and expanding into the Asia Pacific region. The Singapore progress is giving it confidence to expand to other Asian countries.

Tyro Payments Ltd (ASX: TYR)

Tyro is a business that provides payment solutions and banking products for businesses. Its technology allows businesses to accept credit and debit card payments with its point of sale terminals. It’s focused on an in-store solution, but it has recently expanded into e-commerce.

Despite all of the impacts of COVID-19, the business reported growth in the FY21 half-year result. It saw merchant numbers increase 13% to 36,720 and 10% growth of transactions processed to $12.1 billion.

The banking side of the business is growing too – total merchant deposits increased from $39.7 million to $104 million.

Half-year earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 464% to $8.5 million.

Other parts of the business are also showing promise. E-commerce transactions grew from a small base, up 376% to $14.8 million. The telehealth payment solution saw transaction growth of 86% to $178.6 million. Tyro also recently announced it had completed the acquisition of health fintech Medipass Solutions.

In the last few months, Tyro is seeing a lot of year on year transaction growth compared to the COVID-19 period. April transaction value was up 147%, with May year on year growth was more than 80%.

The post 2 ASX shares that could be worth looking at this weekend appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) was on form again last week. The benchmark index stormed 1.6% higher over the five days to close at a record high of 7,295 points.

While a good number of shares climbed higher with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Origin Energy Ltd (ASX: ORG)

The Origin share price was the best performer on the ASX 200 last week with a 15.7% gain. This appears to have been driven partly by broker notes out of Macquarie and Ord Minnett. Both brokers are becoming more positive on electricity prices and highlight strong oil prices. The latter broker has retained its buy rating and increased its price target to $5.75. Whereas Macquarie held firm with its outperform rating and lifted its price target to $4.88.

Worley Ltd (ASX: WOR)

The Worley share price wasn’t far behind with a 15.6% jump last week. This was driven by a positive reaction from brokers to its investor day event. Two brokers that were pleased with its update were Citi and Goldman Sachs. Citi retained its buy rating and lifted its price target to $12.60 and Goldman retained its conviction buy rating and $15.60 price target on the engineering company’s shares. Goldman believes Worley is well positioned to capitalise on ramping sustainability spend.

Inghams Group Ltd (ASX: ING)

The Inghams share price was on form and climbed 12.3% last week. This appears to have been driven by a broker note out of Credit Suisse. Last week the broker retained its outperform rating on this poultry producer’s shares and lifted its price target to $4.10. Credit Suisse was pleased with the company’s trading update a week earlier and believes its valuation is undemanding.

Santos Ltd (ASX: STO)

The Santos share price was a strong performer, climbing 12.2% over the five days. This follows a positive week for oil prices. Traders bid oil prices to two-year highs after OPEC and its allies reconfirmed plans to increase production gradually. The oil cartel also spoke positively about demand and is expecting it to increase.

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