Last week was a tough slog for the AGL Energy Limited (ASX: AGL) share price.

Despite no news having been released by AGL, its shares fell 9.39% over the course of the week. After closing at $7.99 on Friday 23 July, the AGL share price is now $7.23.

Let’s take a look at the latest news on AGL.

AGL in the news

The most recent time AGL hit the headlines was on Tuesday night when The Australian reported AGL is considering bidding for troubled solar company Autonomous Energy.

It’s unclear if the news affected the AGL share price, which fell 2.98% on Wednesday.

Autonomous Energy was one of numerous entities in the Forum Group of companies which, according to the Australian Financial Review, was under the administration of Forum Finance.

Of course, those keeping an eye on the news cycle lately will know the name Forum Finance. It is, of course, the tech business that allegedly attempted to defraud Westpac Banking Corp (ASX:WBC) earlier this month.

Most companies within the Forum Group have now reportedly been forced into administration but Autonomous Energy is set to be sold off. And AGL is supposedly ready to make the most of it.

According to The Australian, AGL is one of 10 parties looking to bid on Autonomous Energy when it goes to auction.

The publication said an AGL spokesperson refused to comment on the matter.

The latest from AGL

The last time the market heard from AGL was back on 30 June, when it released an update on its planned demerger.

The AGL share price plummeted 9.99% on the back of the update.

AGL is planning to split into 2 entities. The first, Accel Energy, will be an electricity generation business. AGL will be split from Accel Energy and will take charge of electricity retailing.

The demerger is expected to take place in the fourth quarter of the current financial year.

AGL share price snapshot

Last week’s fall sees the AGL share price 40% lower than it was at the start of 2021. It is also 56% lower than it was this time last year.

The company has a market capitalisation of around $4.6 billion, with approximately 623 million shares outstanding.

The post It hasn’t been a great week for the AGL (ASX:AGL) share price appeared first on The Motley Fool Australia.

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• It hasn’t been a great month for the AGL (ASX:AGL) share price
• Should you buy AGL (ASX:AGL) shares in July 2021 for the dividend yield?
• AGL Energy (ASX:AGL) share price one to watch during transition – expert

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 was another positive month for the S&P/ASX 200 Index (ASX: XJO) in July. The benchmark index pushed a solid 1.1% over the period to end it at 7,392.6 points.

Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares in July:

Crown Resorts Ltd (ASX: CWN)

The Crown share price was the worst performer on the ASX 200 last month with a disappointing 27.8% decline. Investors were selling the casino and resorts operator’s shares amid concerns that it could lose its Melbourne casino licence and the collapse of merger talks with Star Entertainment Group Ltd (ASX: SGR). The rival casino and resorts operator advised that it was walking away from merger talks due to too much uncertainty.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the next worst performer with a sizeable 20.2% decline in July. Investors were selling the medical device company’s shares following the release of a sales update for FY 2021. That update fell short of expectations and led to a couple of leading brokers downgrading its shares. Both Bell Potter and Ord Minnett downgraded the company’s shares to hold ratings and cut their price targets. Bell Potter’s price target was reduced to $2.65 and Ord Minnett’s price target was taken down to $2.54.

Afterpay Ltd (ASX: APT)

The Afterpay share price was a surprisingly poor performer during July and crashed 18.2% lower. This appears to have been driven by concerns over increasing competition in the buy now pay later (BNPL) industry. This follows news that PayPal is removing its BNPL late fees and rumours of Apple planning to launch a new service called Apple Pay Later. The tech behemoth reportedly sees it as a way to boost Apple Pay transactions, giving its US$50 billion a year services business a lift.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price was out of form and sank 16.7% during the month. This appears to have been driven by the release of another disappointing funds under management update. That update revealed another decline in Platinum’s funds under management during the month of June. In addition to this, the fund manager advised that it expects to generate performance fees of just $0.3 million for the second half. Credit Suisse responded by putting an underperform rating and $4.50 price target on its shares. It notes that Platinum has now recorded 30 months of fund outflows in a row.

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

More reading

• Analysts name Afterpay (ASX:APT) and this ASX share as buys
• How China’s war on tech companies can hit ASX shares where it hurts
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• ASX 200 falls, NAB rises, Afterpay sinks

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

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The BHP Group Ltd (ASX: BHP) share price hit an all-time high on Friday, reaching $54.55 in intraday trade.

Unfortunately, its gains didn’t hold. The ASX 200 iron ore producer’s shares ended the week trading for $53.49. That means the BHP share price is currently 21.2% higher than it was 6 months ago.

But is now a good time to buy BHP?

Let’s take a look at what’s been driving the ASX 200 giant’s share price lately and whether it looks like it will keep climbing.

What’s driving the BHP share price?

As The Motley Fool Australia reported on Friday, it seems the BHP share price is being driven higher by factors outside the company’s control, namely the price of iron ore and the Australian dollar.

Right now, iron ore is coming off its own all-time high. A tonne of iron ore is currently going for US$193.70 a tonne. That’s not quite the all-time high of US$238 per tonne that it hit in early May, but it’s still above what it has been in recent years.

At the same time, the Australian dollar is at a particularly low point. Right now, AU$1.00 is worth US$0.74. When the Australian dollar is down, Aussie companies trading internationally get more Aussie dollars in their pockets.

So, we now have a fair idea of some of the major factors driving the BHP share price. But the question is, will they stick around?

Iron ore price

In the case of iron ore, the answer is no, according to the Australian Office of the Chief Economist (OCE).

The OCE expects the amount of iron ore that Australia is exporting to increase by 2022/23 as new mines are put into production. At the same time, it forecasts the price of iron ore to ease.

The OCE’s guidance for the iron ore price is about $150 per tonne on average for the remainder of 2021. It expects the price to fall below $100 per tonne by the end of 2022.

Australian dollar

Whether the Aussie dollar’s value against the US dollar will go up or down is hard to predict, but some experts forecast it will go up.

National Australia Bank Ltd. (ASX:NAB) expects the Australian dollar will be worth US$0.78 by December 2021 and US$0.80 by March 2022. It predicts it will stay at US$0.80 until 2023, then fall again.

Is now a good time to buy BHP shares?

Unfortunately, using just these metrics, it doesn’t look like a great time to buy the ASX 200 giant.

However, it’s impossible to predict whether the BHP share price will go up or down.

Time will tell how the market treats BHP in the near future, with the most telling answer to come later this month when BHP releases its full-year results on 17 August.

The post The BHP (ASX:BHP) share price is up 21% in the last 6 months. Is now a good time to buy shares in this ASX 200 giant? appeared first on The Motley Fool Australia.

More reading

• 2 outstanding ASX 200 blue chip shares named as buys for August
• How China’s war on tech companies can hit ASX shares where it hurts
• ASX 200 shares in this sector pushing into record highs on Friday
• Why the BHP (ASX:BHP) share price just hit a new all-time high this Friday
• The ASX 200’s new record high is flimsier than you might think. Here’s why

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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With what could be considered the Olympics of the ASX (earnings season) about to kick off, August is a hotly anticipated month on the investment calendar. In hoping to uncover some possible gold, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in August.

Here is what the team have come up with…

Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH) 

Pushpay is a digital giving payments business, focusing on US churches. It also develops church management software. 

The business has seen a large increase in donations during the COVID-19 period, though Pushpay said it hasn’t seen a return to non-electronic donating with the US opening up. There has seemingly been a permanent shift among many donors to digital donations. 

Pushpay is seeing operating leverage and expects more to come as it grows. FY21 saw operating revenue rise 40%, but net profit grew 95% and operating cash flow surged 145%.  

The Pushpay share price is currently valued at around 28x FY23’s estimated earnings. 

Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd 

Bernd Struben: Marley Spoon AG`s (ASX: MMM)

My top pick for August is meal kit maker and global grocery provider, Marley Spoon.

Marley Spoon has operations across Australia, the United States and Europe. With the onset of the global pandemic, demand for its meal kit business soared. And once these trends take hold, they often stick for the long-term.

Now, this may be a bit like catching a falling knife. The Marley Spoon share price fell some 22% on Friday following the release of the company’s second quarter results. However, Marley Spoon confirmed its FY21 net revenue guidance, expecting revenue growth of 30–35% year-on-year.

With last week’s sharp selloff, August could see a healthy rebound.

Motley Fool contributor Bernd Struben does not own shares in Marley Spoon.

Mitchell Lawler: Super Retail Group Ltd (ASX: SUL)

The ASX share making its way into my top pick for August is auto, outdoor, and sports retailer – Super Retail Group. Many would know the company from its more than 670 stores under the banners Supercheap Auto, Rebel, BCF, and Macpac.

Super Retail Group revealed like-for-like (LFL) sales growth of 28% for the first 44 weeks of FY21 in a trading update provided in May.

The company is slated to report earnings on 18 August 2021. If the recent boom in used car sales is anything to go by, its FY21 results could be impressive.

Motley Fool contributor Mitchell Lawler does not own shares of Super Retail Group.

James Mickleboro: Hipages Group Holdings Ltd (ASX: HPG)

Hipages is Australia’s largest online tradie marketplace and Software-as-a-Service provider, connecting tradies with residential and commercial consumers.

Last week it released its fourth quarter update and revealed strong growth across all key metrics. This led to Hipages exceeding its upgraded full year revenue guidance with a 22% year on year jump to $55.8 million.

Goldman Sachs was impressed with its performance and put a buy rating and $4.10 price target on its shares. This compares to the current Hipages share price of $3.20. The broker is forecasting ~20% revenue growth per annum and even quicker operating earnings growth over the next three years.

Motley Fool contributor James Mickleboro does not own shares of Hipages.

Sebastian Bowen: Telstra Corporation Ltd (ASX: TLS)

My August top stock pick is ASX 200 telco Telstra. Telstra has had a very impressive run in 2021 so far, up more than 25% year to date.

However, Telstra’s dividends are still looking pretty good against many ASX 200 shares as of this week. Its annual 16 cents per share dividend amounts to a raw yield of 4.23% on recent pricing, or 6.05% grossed-up with Telstra’s full franking.

What’s more, there could still be plenty of gas left in the tank. Broker Goldman Sachs currently has a buy recommendation on Telstra shares, with a 12-month share price target of $4.20 a share, a potential upside of 11% from here.

Motley Fool contributor Sebastian Bowen owns shares of Telstra.

The post Top ASX shares to buy in August 2021 appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that may be buys in August 2021
• Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower
• Telstra (ASX:TLS) share price slips as Optus teams up with Uber
• Why the Marley Spoon (ASX:MMM) share price is sinking 22% today
• Telstra (ASX:TLS) share price on watch after NBN news

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hipages Group Holdings Ltd., Marley Spoon AG, and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG, PUSHPAY FPO NZX, Super Retail Group 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.

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If you’re planning to make some new additions to your portfolio in August, then you may want to look at the shares listed below.

Analysts are positive on both of them and have recently named them as shares to buy now. Here’s what you need to know about them:

Afterpay Ltd (ASX: APT)

The first ASX share for investors to look at is this leading buy now pay later (BNPL) focused payments company.  Afterpay has been growing at a rapid rate for a number of years thanks to the increasing popularity of its BNPL service with consumers and merchants. This has been supported by its successful expansion into the United States and the United Kingdom.

Analysts at Morgan Stanley expect this strong growth to continue. Particularly given its new pay anywhere offering in the US, its ongoing international expansion, and the upcoming launch of the highly anticipated Money by Afterpay app in Australia.

Morgan Stanley currently has an overweight rating and $145.00 price target on Afterpay’s shares. This implies significant upside over the next 12 months based on the latest Afterpay share price of $96.66.

Bapcor Ltd (ASX: BAP)

Another ASX share that is highly rated right now is Bapcor. It is the leading auto parts retail group behind brands such as Autobarn, Burson Auto Parts, and Midas.

Analysts at Goldman Sachs are very positive on the company and suspect that it could outperform expectations in FY 2021. Particularly following a strong recent update from key competitor GPC. Goldman believes the company is benefiting greatly from favourable trading conditions that are being underpinned by continued strength in consumer spending and increased vehicle ownership.

Goldman Sachs currently has a buy rating and $9.25 price target on its shares. This compares favourably to the latest Bapcor share price of $8.16.

The post Analysts name Afterpay (ASX:APT) and this ASX share as buys appeared first on The Motley Fool Australia.

More reading

• How China’s war on tech companies can hit ASX shares where it hurts
• ASX 200 falls, NAB rises, Afterpay sinks
• Why Afterpay, Redbubble, & Zip shares are sinking on Friday
• 2 ASX 200 shares tipped to positively surprise during reporting season
• Own Afterpay (ASX:APT) shares? Here’s what to look for during reporting season

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Bapcor. 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 lower risk options to invest your money into, then blue chip shares could be worth considering.

With that in mind, I have picked out two top blue chip ASX 200 shares that have been rated as buys. They are as follows:

BHP Group Ltd (ASX: BHP)

Having a little exposure to the resources sector could be a good thing for investors looking for diversification. And if you’re looking at mining shares, it is hard to look passed the Big Australian. It is one of the most popular options in the space and it isn’t hard to see why.

The mining giant has a diverse portfolio of world class operations that are benefiting greatly from both strong demand and pricing for commodities.

Macquarie expects this to underpin very strong profits and dividends in the near term. As a result, the broker has put an outperform rating and $60.00 price target on its shares. This compares to the latest BHP share price of $53.49.

Goodman Group (ASX: GMG)

Another blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with $52.9 billion of total assets under management globally.

It has a world class portfolio comprising warehouses, large scale logistics facilities, and business and office parks. These properties are in demand and count some of biggest companies in the world as tenants. This demand led to Goodman reporting a 98% occupancy rate at the end of the third quarter.

Looking ahead, the company appears well-placed to benefit from like for like rental and its significant development pipeline.

Morgan Stanley is a fan of the company and expects its growth to continue. It currently has an overweight rating and $23.00 price target on its shares.

The post 2 outstanding ASX 200 blue chip shares named as buys for August appeared first on The Motley Fool Australia.

More reading

• How China’s war on tech companies can hit ASX shares where it hurts
• ASX 200 shares in this sector pushing into record highs on Friday
• Why the BHP (ASX:BHP) share price just hit a new all-time high this Friday
• The ASX 200’s new record high is flimsier than you might think. Here’s why
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX tech shares could be the right place to look for ideas in August 2021.

Businesses in the tech space are capable of achieving high profit margins and can produce good shareholder returns.

These two investments could be opportunities:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This is a leading exchange-traded fund (ETF) that provides access to a portfolio of technology companies that are listed in Asia, outside of Japan.

It’s not just the West that has compelling technology businesses. This portfolio has 50 tech companies that are leading operators in their respective industries. These businesses are (hopefully) improving the lives of their consumers, users or clients.

This ASX tech share has a fairly concentrated portfolio. The biggest 10 positions makes up 67.8% of the portfolio. Readers may have heard of some of those names: Taiwan Semiconductor Manufacturing, Samsung Electronics, Alibaba, Tencent, Meituan, Sea, Infosys, JD.com, Pinduoduo and Netease.

They have strong market positions.

Taiwan Semiconductor Manufacturing is the world’s largest independent semiconductor foundry, with most of the world’s leading semiconductor companies as customers.

Alibaba is a huge Chinese digital business that has things like e-commerce and cloud computing.

Samsung is a leading global player in the smartphone and home appliance space.

However, it may be important to know that three countries make up a large portion of the portfolio: China (50%), Taiwan (21.7%) and South Korea (17.7%).

Its annual management fee is 0.67%, but that hasn’t stopped the net returns being strong. However, don’t forget that past performance is not an indicator of future performance.

Since inception in September 2018, the Betashares Asia Technology Tigers ETF portfolio had produced an average return per annum of 29.3%.

Class Ltd (ASX: CL1)

Class is currently rated as a buy by the broker Ord Minnett. It has a price target on Class of $2.40, which suggests an increase of around 40% over the next 12 months if the broker is right.

It’s an ASX tech share which provides software for the self-managed super fund (SMSF) sector. Class also has other relatively new products for clients such as Class Portfolio and Class Trust.

The company has been working on increasing the number of services it can offer to clients. Cross-selling is a useful tactic. Class says it’s accelerating growth through strategically aligned acquisitions in the document and corporate compliance space. NowInfinity, Smartcorp and ReckonDocs are three examples it has chosen to achieve market leadership here – it already has a market share of more than 14% by revenue.

For FY21 it’s targeting overall revenue growth of 22% and an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 40%.

According to Ord Minnett’s projection, Class is valued at 27x FY22’s estimated earnings.

The post 2 ASX tech shares that might be buys in August 2021 appeared first on The Motley Fool Australia.

More reading

• What’s gone wrong with China shares like Tencent lately?
• 2 excellent international ETFs for ASX investors
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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and Class 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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Are you interested in small cap shares? If you are, then you may want to look at the ones listed below.

Both these small cap ASX shares have been given buy ratings and are tipped for big things in the future. Here’s what you need to know:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing healthcare technology company with a portfolio of clinical decision and support software products and services. These products aim to improve patient outcomes by supporting interoperability, allowing for improved communication and task management, and delivering critical clinical decision support at the point of care. Its two key products are MIYA and Smartpage.

Bell Potter is positive on the company and currently has a buy rating and 45 cents price target on its shares. It estimates that Alcidion currently has a realistic and addressable market worth ~$1 billion across ANZ, Europe, and Canada.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to look at is Volpara Health Technologies. It is a healthcare technology company with a focus on improving the early detection of breast cancer with better quality screening using artificial intelligence. Volpara’s technology, which was developed at Oxford University, has been designed to provide objective data on breast tissue density. This is a key risk marker for breast cancer.

It has been growing its market share in the United States at a strong rate and appears well-placed to continue this trend in the future. This is thanks to the quality of its technology, recent acquisitions, and the increasing awareness of the importance of breast tissue density in the screening process.

The team at Bell Potter are positive on Volpara as well. Last week the broker put a buy rating and $1.60 price target on the company’s shares. It is expecting its annual recurring revenues to more than double between now and FY 2024.

The post 2 small cap ASX shares that this broker rates as buys appeared first on The Motley Fool Australia.

More reading

• 2 great ASX shares to think about
• Alcidion (ASX:ALC) share price jumps 14% on solid earnings
• 2 top ASX growth shares reporting strong growth
• Here’s why the Volpara (ASX:VHT) share price is on the move today
• 2 great ASX tech shares that could be buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group 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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If you’re wanting to add some growth shares to your portfolio in August, then you may want to check out the two listed below.

Here’s why analysts are tipping these ASX shares as buys:

IDP Education Ltd (ASX: IEL)

IDP Education could be a growth share to look closely at. It is a provider of international student placement and English language testing services.

While trading conditions have been very tough because of the pandemic, the company appears well-positioned for growth once trading conditions return to normal. Particularly given its recent acquisition of the British Council’s Indian International English Language Testing System for A$240 million.

This transaction is expected to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis.

Goldman Sachs is very positive on the company and believes its growth will accelerate post-pandemic. It also sees opportunities for the company to boost its growth with further earnings accretive acquisitions in the future.

The broker currently has a buy rating and $35.00 price target on its shares. This compares to the latest IDP Education share price of $28.21.

Kogan.com Ltd (ASX: KGN)

Another ASX growth share to consider is Kogan. It is one of Australia’s leading ecommerce companies. It was growing its earnings at a very strong rate for a good number of years until FY 2021.

The company recently released its full year trading update and revealed a 52.5% increase in gross sales to $1,177.7 million but a 23.1% lift in adjusted EBITDA to $61.1 million. While this is very strong compared to what some companies are delivering this year, it fell well short of what the market had been expecting.

This was due to some significant inventory issues after management failed to predict a sharp slowdown in sales after consumers went back to bricks and mortar retail stores. Management has acknowledged this misstep and is working through its inventory. And while this may mean slender margins in the immediate term, analysts at Credit Suisse expect the company to bounce back.

In response to its update, the broker put an outperform rating and $15.31 price target on its shares. This compares to the latest Kogan share price of $10.39.

The post 2 buy-rated growth shares for ASX investors in August appeared first on The Motley Fool Australia.

More reading

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• Brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A few ASX dividend shares have a history of growing dividends for shareholders and may have the potential to continue that record going.

Plenty of businesses cut their dividend payments during the difficult COVID-19 year of 2020 such as National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG) and Woodside Petroleum Ltd (ASX: WPL).

But there were a group of businesses that managed to continue those increases:

APA Group (ASX: APA)

APA describes itself as a leading Australian energy infrastructure business. It owns and/or operates a $22 billion of gas, electricity, solar and wind assets. However, the assets are predominately related to gas infrastructure with its national gas pipeline.

The business is steadily adding to its portfolio of assets, which unlocks more cashflow over time. This in turn funds higher distributions.

One of the latest things that APA plans to do is expand its east coast grid pipeline. The expansion will be delivered in two stages and a capital investment of $270 million. It will increase winter peak capacity of the east coast grid by 25% through additional compression and associated works on two key pathways for delivery of gas from Queensland and the Northern Territory to southern markets. Engineering and design works continue on a potential third stage expansion of the East coast grid to add a further 25% of transportation capacity.

The ASX dividend share has increased its distribution every year for over a decade and a half. The FY21 distribution was increased by 2% to 51 cents per security. It currently offers a distribution yield of 5.4%.

Accent Group Ltd (ASX: AX1)

This is a large footwear business which has over 500 stores, 19 brands and over 20 online platforms. Some of the brands that it’s responsible for in Australia include Stylerunner, Vans, The Athlete’s Foot, Platypus, CAT and Trybe.

It has increased its dividend each year for the past several years.

The business is looking to significantly increase its store network size whilst also growing its online sales.

It was expecting to open at least 90 stores in FY21 with a continued strong store opening schedule expected into FY22.

In the first six months of FY21, its digital sales increased by 110% to $108.1 million and represented 22.3% of sales.

The ASX dividend share has been working on its margins and efficiencies. HY21 saw the fruit of those efforts – whilst total sales only increased 6.6% year on year, earnings before interest and tax (EBIT) climbed 47.3% to $81.8 million and net profit after tax (NPAT) grew 57.3%.

It grew its interim dividend by 52.4% to 8 cents per share. The company says it continues to be defined by strong cash conversion and the “consistent strong returns it delivers on shareholders’ funds”. Over the longer-term, it’s aiming for at least 10% compound earnings per share (EPS) growth, which could help the dividend grow further.

At the current Accent share price, it has a grossed-up dividend yield of 6.3%.

The post 2 ASX shares that could keep growing the dividend every year appeared first on The Motley Fool Australia.

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• Westpac (ASX:WBC) and this ASX dividend share are rated as buys
• 2 buy-rated ASX dividend shares with big fully franked yields
• These ASX dividend shares keep giving investors a payrise
• 2 ASX dividend shares that could be buys with yields above 5%
• Here are 2 ASX dividend shares analysts rate as buys

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 APA Group and Macquarie Group Limited. 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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