ASX share investors have been watching the US$1 trillion stock rout triggered by China’s war on tech companies from the safety of fortress Australia.

But distance may not provide much protection as the re-writing of China’s economic rulebook could hit us where it hurts.

At first blush, Australian investors are just relieved. Most of us have little or no exposure to Chinese tech companies listed in the US.

Share meltdown of China tech companies yet to infect the ASX

China is using a big regulatory stick on its home-grown tech titans that have chosen to cosy up to foreign investors. The vicious sell-off in the DiDi Global Inc – ADR (NYSE: DIDI) share price, Alibaba Group Holding Ltd – ADR (NYSE: BABA) share price and Tencent Holdings ADR (OTCMKTS: TCEHY) share price says it all.

Thank goodness China’s arms can’t quite reach our tech darlings like the Afterpay Ltd (ASX: APT) share price, Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) share price.

Fallout from China’s war on its tech shares

But the Asian giant’s expanding war on companies to include education should ring warning bells for ASX shares. It shows that China is not done with its attempts to stamp its authority on everything within its expansive borders.

There are reports that US and other foreign investors are spooked. They are contemplating pulling up stumps and will sell all Chinese assets in their portfolio. This includes equities, bonds, credit and other assets.

No one knows where the next battle front will be, and what makes this war scarier is that it’s driven by politics, not economics.

Has China become uninvestable?

China has shown its happy to cut its nose to spite its face, and that could make the country uninvestable.

This comes at a time when our largest trading partner overtook the US as the number one destination for new foreign direct investment in January this year.

Xi Jinping might be regrowing the bamboo curtain to ringfence his country. But this is no longer Mao Zedong’s China. The country is too integrated with global markets these days and it needs foreign capital to grow.

ASX shares could soon feel the heat

This is where China’s expanding war on tech can bite ASX shares. If China’s growth declines, we will feel it in just about every part of our economy.

It’s not just the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price that will hit the skids.

Foolish takeaway

It brings some comfort that the Chinese authorities have reached out to international investors to calm fears.

But in unpredictable China, global investors may be tempted to sell first and ask questions later. China is unlikely to stop at just two sectors.

As for ASX investors, don’t get too comfortable watching this sideshow from afar.

The post How China’s war on tech companies can hit ASX shares where it hurts appeared first on The Motley Fool Australia.

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One investment option that is growing in popularity is exchange traded funds (ETFs).

And it isn’t hard to see why they are so popular with investors. As well as being an easy way to invest your hard-earned money, they provide you with opportunities that were unattainable a decade ago.

But given the many options, it can be difficult to decide which ETFs to buy ahead of others. To narrow things down, I have picked out three ETFs that are highly rated right now. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF for investors to look at is the BetaShares Global Cybersecurity ETF. This ETF gives investors access to the leading companies in the global cybersecurity sector. Given how prevalent cyberattacks are becoming, demand for cybersecurity services is expected to rise strongly in the future. This bodes well for companies included in the fund such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another option for investors is the BetaShares NASDAQ 100 ETF. It could be a top option as it gives investors exposure to the 100 largest non-financial shares on the NASDAQ index. These are many of the largest companies in the world and household names. Among the 100 are giants including Amazon, Alphabet, Apple, Facebook, Microsoft, Netflix, Nvidia, and Tesla. Given the positive long term outlooks of these companies, the Nasdaq 100 has been tipped to outperform the broader market.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. These are traits that Warren Buffett looks for when he picks his investments. At present, there are a total of 49 US based stocks in the fund. This includes Amazon, Bank of America, Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.

The post 3 excellent ETFs for ASX investors in August appeared first on The Motley Fool Australia.

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• Why Betashares Nasdaq 100 ETF (ASX:NDQ) could be a great investment
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• CBA and Zip were among the most traded ASX shares last week
• 2 top ASX growth 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 BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS, BETANASDAQ ETF UNITS, and BetaShares Asia Technology Tigers ETF. 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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There are a few ASX growth shares that might be opportunities to think about in August 2021.

Businesses that are growing revenue rapidly have the potential to grow their value for shareholders at a pleasing rate as well. Scale benefits can be particularly useful for growing profit faster than revenue over time.

These two businesses have been demonstrating growth for a while and have plans for more:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture.

The ASX growth share believes that Aussies are going to spend more and more online. It’s particularly focused on the millennial demographic which is just starting to enter the prime spending period of their lives, according to Temple & Webster.

This business is growing at a fast pace, particularly during COVID-19. In FY21 its revenue increased 85% to $326.3 million and active customers rose 62% to 778,000. Temple & Webster is seeing its existing customer base spend more. Revenue per active customer increased 12% year on year in FY21 due to customers repeat buying more often and spending more when they do.

In the period of 1 July 2021 to 24 July 2021, its revenue has grown by 39%.

The company said that it is exposed to some strong tailwinds at the moment, such as the ongoing adoption of online shopping due to structural and demographic shifts, with an acceleration of these trends due to COVID-19.

Temple & Webster stated:

We will continue our reinvestment strategy, investing into growth areas of the business to grow our online market leadership position with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in our home market.

The business is also thinking about international expansion in the longer-term.

Pushpay Holdings Ltd (ASX: PPH)

This ASX growth share is a digital giving business, which facilitates electronic donations. It is predominately serving large and medium US churches. On an annualised basis, it is processing several billion (US) dollars. Pushpay also provides church management systems to help churches manage their administration needs, whilst connecting with and overseeing their congregations. In FY21, total processing volume went up 39% to US$6.9 billion.

The company is expecting continued growth of total processing volume driven by continued growth in the number of customers using its donor management system, further development of its product set resulting in higher adoption and usage.

It’s also seeing profit margin improvement at a number of different levels. For example, in FY21 its gross profit margin increased from 65% to 68%. It also saw the total operating expenses to operating revenue ratio improve by 11 percentage points, from 47% to 36%.

The company is planning more growth with an expansion in the Catholic segment of the US faith sector. This is part of the plan for the business to become the preferred provider of mission critical software to the US faith sector.

In the current financial year, it’s going to invest between US$6 million to US$8 million on product design, development, sales and marketing on Catholic growth.

Pushpay has a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.

The post 2 ASX growth shares that may be buys in August 2021 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 PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster 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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The Betashares Nasdaq 100 ETF (ASX: NDQ) has a number of compelling reasons to consider it as a long-term investment.

It’s one of the larger exchange-traded funds (ETFs) with net assets almost $2.1 billion.

This investment is provided by BetaShares, one of the biggest providers of ETFs in Australia.

But size is not one of the key factors why it could be worth considering Betashares Nasdaq 100 ETF.

Here are three to think about:

Diversification

The S&P/ASX 200 Index (ASX: XJO) is dominated by two industries: financials and resources. Within that, there are a few sizeable businesses including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

But the Betashares Nasdaq 100 ETF is very different. It has 100 non-financial businesses in its portfolio. Resources don’t feature in the portfolio either. Almost half of the portfolio is classified as ‘information technology’ with another 19.7% in ‘communication services’ and 17.3% in ‘consumer discretionary’.

But those classifications may not be exactly what you’re thinking. Amazon and Tesla count as consumer discretionary businesses, whilst Alphabet (Google) and Facebook count as communication services businesses.

Not only can an investor get exposure to 100 businesses outside of the ASX, but those underlying earnings are being generated from right across the world. Think how many countries there are where people can use Google Search. Facebook is also in most countries in the world. And so on.

High-quality businesses

But this ETF isn’t just about diversification for the sake of being different.

Many of the businesses in the Betashares Nasdaq 100 ETF portfolio are among the best, if not the best, at what they do.

Apple is one of the global leaders in smartphones, computers and the extra services it offers. Microsoft is very strong in numerous categories like office software, cloud computing and gaming. Amazon has online retail, cloud computing and so on.

However, there are quite a few great companies in there, not just the ‘FAANG’ shares.

PayPal is a huge player in the payments and online retail space. Adobe has a number of important offerings.

Broadcom, Qualcomm, Texas Instruments, Intuit, Moderna, Applied Materials, Advanced Micro Devices, Intuitive Surgical, Zoom and so on.

There are so many quality names in the portfolio that are generating strong profit, growth and creating very powerful economic moats.

Betashares Nasdaq 100 ETF’s strong returns with a reasonable fee

Betashares Nasdaq 100 ETF has an annual management fee of 0.48%.

The portfolio of quality names has produced sizeable returns over the shorter-term and longer-term.

However, it’s important to note that past performance is not an indicator of future performance.

Over the last 12 months the ETF has seen a net return of 31.6%. Since inception in May 2015, Betashares Nasdaq 100 ETF has delivered an average return per annum of 22.5%.

However, investors will have to wait and see what the next few years of returns looks like.

The post Why Betashares Nasdaq 100 ETF (ASX:NDQ) could be a great investment 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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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 a mixed week for the S&P/ASX 200 Index (ASX: XJO). A pullback on Friday led to the benchmark index ending the period marginally lower at 7,392.6 points.

This couldn’t stop some ASX 200 shares from charging higher over the period. Here’s why these were the best performers on the index last week:

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was the best performer on the ASX 200 last week with a 14.2% gain. Investors were fighting to get hold of the rare earths producer’s shares following the release of its fourth quarter update. Lynas reported a 79.7% increase in quarterly neodymium and praseodymium (NdPr) production to 1,393 tonnes. Combined with the almost doubling of its average realised price, this led to a significant increase in quarterly sales revenue to $185.9 million. This was up materially from sales revenue of $38 million a year earlier.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price wasn’t far behind with a gain of 12.4% over the five days. This was driven by the release of an impressive first quarter update by the Canadian iron ore producer. Champion Iron more than doubled its revenue to C$545.4 million thanks to a significant increase in its average realised selling price. This ultimately led to record first quarter operating earnings of C$405.7 million, up from C$130.2 million a year earlier.

IRESS Ltd (ASX: IRE)

The IRESS share price was a strong performer and charged 9.3% higher last week. The catalyst for this was news that the financial technology company has received another takeover approach. According to the release, EQT Fund Management has made an unsolicited, non-binding and indicative proposal to acquire IRESS for between $15.30 and $15.50 cash per share. This represented a 22.3% to 23.9% premium to the IRESS share price at the time of the announcement. Last month IRESS rejected a $14.80 per share proposal from EQT.

OZ Minerals Limited (ASX: OZL)

The OZ Minerals share price was on form and jumped 9.3% over the period. Investors were buying the copper producer’s shares after the release of its strong second quarter update. OZ Minerals achieved copper production of 32,681 tonnes and gold production of 57,875 ounces during the three months. This led to management making positive revisions to its FY 2021 guidance. It has increased its gold production guidance and reduced its overall cash costs guidance.

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

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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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The good news for income investors in this low interest rate environment is that the Australian share market is home to plenty of shares offering generous yields.

Two that do just this are listed below. Here’s why they could be top options for income investors:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust focused on social infrastructure properties.

Its growing portfolio comprises childcare centres, bus depots, and police and justice services facilities. Though, its main focus is on the former. In fact, it is Australia’s largest owner of early learning centres, actively partnering with 37 high quality childcare operators to provide an integrated service offering.

Demand for its properties has been strong, leading to an occupancy rate of 99.7% at the end of the first half. It also has great visibility on its future earnings thanks to its weighted average lease expiry (WALE) of over 14 years.

Goldman Sachs is a big fan and currently has a conviction buy rating and $3.84 price target on its shares. The broker believes it is well-placed for growth in the coming years, particularly given how almost 40% its rents are CPI linked.  Goldman expects this to lead to distributions greater than 5% through to FY 2023.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share to look at is Suncorp. The banking and insurance giant could be a top option for income investors due to its improving outlook. This is being driven by Australia’s strong economic recovery, which leaves this banking and insurance giant well-placed for growth.

The team at Citi are confident that this will lead to generous dividends for investors. Citi is forecasting dividends of 61 cents per share in FY 2021 (including a special dividend) and then 58 cents per share in FY 2022.

Based on the current Suncorp share price of $11.54, this implies fully franked yields of 5.3% and 5%, respectively, over the next two years. Citi currently has a buy rating and $11.80 price target on Suncorp’s shares.

The post 2 high quality ASX dividend shares with big yields appeared first on The Motley Fool Australia.

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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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The S&P/ASX 200 Index (ASX: XJO) was on course to record a small gain last week until a pullback on Friday. This led to the benchmark index finishing the week 1.8 points lower at 7,392.6 points.

A number of ASX 200 shares performed particularly poorly and weighed heavily on the index. Here’s why these were the worst performers over the five days:

Crown Resorts Ltd (ASX: CWN)

The Crown share price was the worst performer on the ASX 200 last week with a 14.1% decline. This casino and resort operator’s shares have come under significant pressure since Star Entertainment Group Ltd (ASX: SGR) announced that it was ending merger talks. Star advised that while it remains interested in a potential merger, there is just too much uncertainty at present. It notes that there are concerns that Crown could lose its Melbourne licence.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price wasn’t far behind with a disappointing 13.6% decline. The embattled infant formula company’s shares were sold off amid concerns over potential regulatory changes in China. This follows sweeping changes to a range of other sectors, which have led to fears that the government may look to favour domestic producers. In addition, another soft quarterly update by smaller rival Bubs Australia Ltd (ASX: BUB) on Friday weighed on investor sentiment in the space.

Nuix Ltd (ASX: NXL)

The Nuix share price was out of form and tumbled 11.7% over the five days. This was despite there being no news out of the beleaguered investigative analytics and intelligence software company. However, its shares were strong performers a week earlier, so this has reversed those gains. The Nuix share price is down 70% since the start of the year.

Appen Ltd (ASX: APX)

The Appen share price was a poor performer and dropped 11.1% last week. Once again, this was despite there being no news out of the artificial intelligence data services company. Though, broad weakness in the tech sector appears to have played a role in some of this decline. The S&P ASX All Technology index lost 3.35% over the period.

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

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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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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.

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ASX 200 lithium shares Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) have continued to rally in 2021, all up by more than 20% in the past month.

From a year-to-date perspective, both Pilbara and Galaxy have just crossed the 100% return mark, while Orocobre is up about 85%.

So, what exactly is driving these ASX 200 lithium shares to record highs?

ASX 200 lithium shares surge on higher spot prices

The backbone for any commodity producer is the spot price.

Higher iron ore spot prices have helped drive BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) to all-time highs this year.

Conversely, weaker gold prices have seen gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) struggle to outperform.

In the case of lithium, Orocobre’s June quarterly results are a good example of just how far lithium prices have come.

In the June quarter, Orocobre was receiving US$8,476/tonne for its lithium carbonate, up 45% on the March quarter.

But it was just a year ago that the company was receiving US$3,913/tonne while its cost of sales was US$3,920.

Orocobre and other ASX 200 lithium shares have all experienced a huge jump in margins thanks to the recent rebound in lithium prices.

Big players want in on the lithium party

ASX 200 lithium shares aren’t the only ones hogging the hype around the lithium sector.

On 28 July, Rio Tinto Limited (ASX: RIO) announced a $2.4 billion investment to “strengthen its portfolio for the global energy transition”.

This investment will see Rio Tinto take the initial steps to bring its Jadar lithium-borates project online by 2026.

By 2029, Rio Tinto believes it could be one of the top ten lithium producers in the world.

Another positive headline for ASX 200 lithium shares

The lithium industry has been supported by a number of environmental goals amongst major economies to reduce emissions and produce renewable energy.

On Friday, Reuters reported another potential win for the lithium industry.

The White House is in discussions with US automakers on electric vehicle sales targets as part of the Biden administration’s proposed revisions to vehicle emissions standards.

According to Reuters, a voluntary target of at least 40% of new vehicle sales being electric by 2023 could be set as early as next week.

The post These ASX 200 lithium shares have all surged more than 20% in a month appeared first on The Motley Fool Australia.

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• ASX lithium shares are surging this Friday. Here’s why.
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Motley Fool contributor Kerry Sun 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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There are a number of ASX shares that might be worth looking at this weekend.

Businesses that have growth potential and are at good value could certainly be ideas.

Sometimes those ideas can be found outside of the S&P/ASX 200 Index (ASX: XJO).

Here are two that could be worth thinking about:

Pacific Current Group Ltd (ASX: PAC)

Pacific describes itself as a multi-boutique asset management company that applies its strategic resources, including capital, institutional distribution capabilities and operational expertise to help its partners excel. It currently has investments in 15 boutique asset managers around the world.

Some of the investment managers it has stakes in includes GQG, ROC, Victory Park, Proterra and Astarte.

Every quarter it releases its progress with its funds under management (FUM). For the three months to 30 June 2021, Pacific saw its FUM increase by 15.4% to $142.3 billion.

Higher FUM for the ASX share’s investment managers can translate into higher management fees, which can turn into higher revenue and profit for Pacific. However, each relationship between Pacific and the boutique can vary depending on different economic factors, so 15% FUM growth doesn’t necessarily translate into 15% revenue growth.

The broker Ord Minnett currently rates Pacific as a buy with a price target of $6.70. That suggests the Pacific share price could rise by almost 20% over the next 12 months if the broker is right.

Ord Minnett believes that the ASX share could pay an annual dividend of $0.37 per share in FY22. That translates to a grossed-up dividend yield of 9.3% at the current share price.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that has a portfolio of shares that are decided by Morningstar analysts.

Those analysts are looking for businesses that are currently priced attractively compared to the estimate of fair value.

However, the ETF doesn’t invest in any company. It only goes for businesses that have wide economic moats. In other words, businesses that have strong competitive advantages that are expected to endure for a number of years.

Some of the 48 holdings currently in the portfolio include: ServiceNow, Alphabet, Microsoft, Tyler Technologies, Facebook, Pfizer, Amazon, Cheniere Energy, Medtronic, Wells Fargo, Salesforce, Guidewire Software, Philip Morris and General Dynamics.

These businesses are allocated across a number of different industries. The ones with a double digit weighting include: health care, information technology, industrials, financials and consumer staples.

The ASX share has an annual management fee of 0.49%.

Past performance is not a guarantee of future results, as VanEck says. But, over the last five years it has returned an average of 19.2% per annum, outperforming the S&P 500’s return of 16.8% per annum. Indeed, it has outperformed the S&P 500 over the last six months, year, three years, five years and since the ETF’s inception.

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

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Motley Fool contributor Tristan Harrison owns shares of PACCURRENT FPO. 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 VanEck Vectors Morningstar Wide Moat ETF. 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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Fortunately, in this low interest rate environment, there are plenty of shares offering investors attractive fully franked dividend yields.

Two dividend shares that are currently rated as buys are listed below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

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

While Accent has been growing at a solid rate for many years, its growth has gone up a gear in FY 2021. This has been driven by the popularity of its store brands, the expansion of its network, and a favourable redirection in consumer spending.

Bell Potter appears confident this strong form can continue and expects it to lead to growing dividends.

It is forecasting fully franked dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.73, this represents fully franked yields of 4.3% and 4.5%, respectively.

Bell Potter has a buy rating and $3.30 price target on its shares.

Westpac Banking Corp (ASX: WBC)

With trading conditions in the banking sector continuing to look positive, Westpac could be an ASX dividend share to look at. Especially given its cost cutting plans, strong balance sheet, and the removal of dividend restrictions by APRA.

Combined, analysts at Citi expect Westpac to be in a position to reward shareholders with some generous dividends in the near term.

The broker is forecasting fully franked dividends of $1.16 per share in FY 2021 and then $1.18 per share in FY 2022. Based on the current Westpac share price of $24.52, this represents yields of 4.7% and 4.8%, respectively, over the next couple of years.

Citi has a buy rating and $30.00 price target on the bank’s shares.

The post Westpac (ASX:WBC) and this ASX dividend share are rated as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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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