The Temple & Webster Group Ltd (ASX: TPW) share price could be worth looking at after releasing its FY21 result.

This business is a leading online retailer of furniture and homewares. It has over 200,000 products on sale from hundreds of different suppliers. Temple & Webster runs a drop shipping model where products are sent directly to customers by suppliers. This helps with delivery times and reduces the need to hold inventory. That means it can offer a larger product range.

Temple & Webster also has a private label range of products that are sourced directly by the company from overseas suppliers.

There were a few things that may make the Temple & Webster share price a good one to think about:

Continued top line growth

The company reported another strong year for growth, despite the lockdown e-commerce boom occurring in some of FY20.

Full year revenue in FY21 went up for 85% to $326.3 million. That included a high growth rate of 26% in the fourth quarter of FY21 (which was being compared against the fourth quarter of FY20 where revenue had increased 130% year on year).

The trade and commercial division saw revenue growth of 110%, which is becoming a more sizeable part of the business.

Temple & Webster’s strong revenue growth has continued into the first month of FY22. For the period of 1 July 2021 to 24 July 2021, revenue has increased by 39% year on year.

Private label is also seeing growth. As a percentage of sales, private label went from 19% in FY20 to 26% in FY21. This comes with benefits such as diversification of supply (with less dependency on its drop-ship network), improved margins, stock assurance and speed of dispatch.

Customer loyalty and increased spending

Total customers increased by 62% year on year to 778,000. More active customers means a bigger group of people it can market to. It also means there’s potential for those customers to return again.

Indeed, Temple & Webster said that in FY21 revenue per active customer increased 12% year on year due to customers repeat buying more often and spending more when they do.

The company doesn’t have to spend as much on marketing to bring these customers back again. Its 12-month marketing return on investment (ROI) remained “healthy” at 2.3x, even with significant TV investment to build brand awareness.

Temple & Webster’s conversion rate continues to improve, with a high customer satisfaction rate. The company is looking to expand its scope of augmented reality offer, provide 3D room visualisations, and offer a virtual designer (AI led) and visual search (on an app).

Other things that company is looking to provide is an after hours and weekend delivery service, data integration for self-service and it’s working with logistics partners on peak periods.

Strong outlook

The company is looking to grow its revenue by strong double digits during a period of high investment. This could help the Temple & Webster share price rise further

It’s expecting an ongoing adoption of online shopping due to structural and demographic shift. The business is looking to grow its online market leadership position with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in its home market.

After this period of investment, it’s expecting to be able to leverage its scale and strategic moats to grow its contribution profit margin in percentage terms whilst benefiting from better supplier terms and higher brand awareness. Being larger should also help slow investment in fixed costs.

The business is also thinking about its next investment horizon, such as international expansion.

The post Why the Temple & Webster (ASX:TPW) share price could be a buy after the FY21 result appeared first on The Motley Fool Australia.

More reading

• Why the Temple & Webster (ASX:TPW) share price zoomed 15% higher
• ASX 200 rises, Temple & Webster surges, Japara soars
• Why BlueScope, Japara, OZ Minerals, & Temple & Webster are storming higher
• 2 top ASX growth shares reporting strong growth
• Temple & Webster (ASX:TPW) share price charges 7% higher on strong FY 2021 result

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 Temple & Webster Group Ltd. 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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It’s a great time to be invested in ASX 200 shares in the resources sector.

Last week, the Australian Bureau of Statistics (ABS) released its preliminary international merchandise trade figures for June.

Within the release, it highlighted a fourth consecutive record month for metalliferous ores.

The report said: “Driving the increase was iron ore, up $1,043m (6%) to $17,553m. The iron ore increase was primarily price driven despite recent pressure to reduce prices.”

But its not just iron ore.

The Bloomberg’s Commodity Index, which reflects the broader performance of energy, metals and agriculture, has rallied from record lows in April 2020 to a 5-year high this month.

The strong performance of commodities, more broadly speaking, has seen a number of related ASX 200 shares lift to record highs.

However, the consistent theme among record makers isn’t iron ore.

What do record-setting ASX 200 shares have in common?

It’s renewables.

From lithium to nickel, there has been a surge in demand for materials used to manufacture battery technology and electric vehicles.

Which ASX 200 shares are hitting new record highs ?

BHP Group Ltd (ASX: BHP)

The BHP share price marked a new all-time high of $53.65 on Tuesday.

While BHP is one of the world’s largest iron ore producers, the company recently entered into a nickel supply agreement with Tesla.

BHP CEO Vandita Pant commented on the agreement saying:

“Demand for nickel in batteries is estimated to grow by over 500 per cent over the next decade, in large part to support the world’s rising demand for electric vehicles.”

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price has gone from strength-to-strength in 2021. It has rallied 58.90% year-to-date to a record high of $63.85 on Monday.

Alongside the company’s core mining services and iron ore operations, it also operates two high-profile lithium joint ventures with Chinese lithium giant Ganfeng and US-listed Albemarle.

Orocobre Limited (ASX: ORE)

The Orocobre share price stormed higher last Thursday, following the release of its June quarterly results.

A key highlight was the company’s average realised price for its lithium carbonate. Orocobre cited a 45% quarter-on-quarter increase in prices to US$8,476/tonne free on board (FOB).

The company also hinted at ongoing discussions with Toyota Tsusho Corporation regarding “an expansion of lithium hydroxide production to meet forecast growth in demand”.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is another lithium player cruising to a record close of $1.77 on Monday.

The bullish performance of Pilbara Minerals follows a similar narrative as Orocobre — driven by a jump in lithium spot prices, ramping up production to meet demand and heightened investor interest in battery and renewable sectors.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price rallied to an all-time high of $7.20 on Monday. This came after the company released its quarterly activities report.

Encouragingly, the report highlighted a strong uplift in the average selling price of its rare earths. This surged from $20.20 per kilo in Q4 FY20 to $39.10 per kilo in Q4 FY21.

Lynas has a unique position as one of few ASX 200 shares engaged in the production of rare earths.

The post 5 ASX 200 shares hitting record highs. What do they have in common? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to hold onto for the next 5 years
• 2 highly rated ASX 200 dividend shares that could be buys
• Fortescue (ASX:FMG) share price within arms’ reach of all-time highs
• Here’s why the Pilbara Minerals (ASX:PLS) share price is frozen
• Analysts rate these ASX lithium miners as buys

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. owns shares of and has recommended Tesla. 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, The Montgomery Fund portfolio manager Joseph Kim reveals a pair of ASX shares that he’d be intrigued to see in his portfolio in 5 years’ time.

Timeless ASX shares

The Motley Fool: If the market closed tomorrow for 5 years, which stock would you want to hold?

Joseph Kim: I’ve got 2 answers here.

For the more risk-tolerant investor, I really like AVITA Medical Inc (ASX: AVH). It’s done really well and it’s burnt me in the past. 

There’s a lot of concern around cash burn and the total addressable market, et cetera. I won’t say it’s not risky because they still need to execute. 

When you look at biotechs and you look at medical device companies in general, a lot of it is about promotion and they promote the product and how awesome it is. But when you talk to the surgeons and the physicians that are going to ultimately use it and have to get reimbursed by the US medical system to use it, you potentially get different answers.

Now, the other part of that is a lot of the times when they spruik their products, they don’t even have approval from the FDA, right? So this is an amazing product, whatever, but we don’t have FDA approval because we haven’t been able to demonstrate statistical significance that this thing actually works in terms of what we say it does. 

Most of the time they don’t work. [But] this one is proven to work. You’ve de-risked the FDA approval part, which is usually the biggest risk with these biotech and medical device companies.

So yeah, it’s going to take time. And there’s always going to be people that won’t use it because they’re just stuck in their ways… But then, ultimately, as a doctor with the duty of care, you’ve got to provide the best outcome to your patients. I think from that perspective, I’m pretty optimistic now. 

The other one is Goodman Group (ASX: GMG). So founder-led business, got all the right tailwinds. 

People are going to say, it looks expensive. It’s [been] expensive for a long period of time. Five years is a long time… With Goodman, you have [the] right tailwinds, they’re in the right areas. You’ve got a management team that’s aligned [to a] value-focused business. You can see the pipeline of developments that they have. And in the next 2 or 3 years, you should be growing at about 10% [per annum]. The business is getting more valuable over time.

MF: Is the adoption of online shopping a theme for Goodman?

JK: It is. Data centres too, by the way, they developed data centres.

One of the big things over the past 3 or 4 years, it’s [become] more extreme, is that there’s a real hollowing out of the middle of everything. What I mean by that is you look at brands, luxury brands. Right at the top they’re booming. The middle is where it’s really suffering relatively.

It’s a bit like that in property as well. You’ve got the cheaper property that’s in not-so-great locations. And, yeah, they’ve all gone up with money being cheaper and cheaper, but then the top end has gone extreme.

So the middle is hollowed out. These guys are in the right place for that too. Their locations, what they have, and so you go, well, is that a trend that’s going to stop anytime soon? It’s unlikely. 

That’s why I’m more bullish on Goodman as opposed to just pure e-commerce. Because, yes, e-commerce is great — but it’s more like they’re in the right places with the right pipeline of opportunities with a focused management team.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

JK: Oh my God, this is an easy one. 

It was during March in 2020. So we were able to go defensive before the [COVID-19] market crash because we anticipated COVID being a bigger issue than what the market was initially thinking, but it took too long for us to get back in. 

Our clients and our investors didn’t get the full benefit of — obviously the downward journey was much more pleasant — but the rebound journey. People are a lot more averse to capital loss than capital gain, right? So that journey is a lot more unpleasant. There are few people who got both sides [correct].

Why it’s even more frustrating is because at the bottom of the market, we were like, ‘Hey, we’re really outperforming’. This is when things start to look reasonable and we should lock some of that away now. What I mean by that is we should really start using some of [that] cash into really high-quality businesses that we know are going to be here in 2 or 3 years’ time. 

If the market keeps falling, yeah, we’ll probably fall a bit more with it, but this is where you have to look beyond the valley. 

And the reasoning was, look at what China did. China locked down for 3 months, just completely locked down. It wasn’t smooth, but they were able to reduce the number of cases… Then you look at what the central banks were doing, they were printing enough money and providing enough support — physical and monetary support — to make sure that we could tide everyone over for those 3 months. 

Now, what derailed that was the US just having a rampage in COVID cases, which meant that they just didn’t do that hard lockdown. 

So we did put cash to work, but it was also a period of extreme uncertainty with no vaccine timetable. But again, with the benefit of hindsight, that’s probably been by far my biggest regret.

MF: Is there a particular ASX share that you missed out on that particularly hurts?

JK: We were a little bit late to Wesfarmers Ltd (ASX: WES), but we did end up buying that pretty quick. That’s obviously done really well. 

Look, it’s tempting to say BHP Group Ltd (ASX: BHP), but it’s not because we identified BHP as one that had a margin of safety because of what China was doing in terms of stimulating the old parts of the economy. By the old parts of the economy, I mean the property, construction, infrastructure, et cetera. That’s the easiest lever for them to pull. So it’s tempting to say that, but I think there were better risk-return opportunities than BHP… Yes, the reward didn’t look as high, but there was a much lower risk. So I’m not as anxious around that.

Again, we bought into it a bit late, but Goodman got below $10. And finally, when it got below $10, we knew why it was going there because there were a lot of property funds that were highly leveraged and they had to deleverage. So there was a golden opportunity to get it very cheaply.  I wish we had’ve got back in earlier.

The post 2 ASX shares to hold onto for the next 5 years appeared first on The Motley Fool Australia.

More reading

• 2 highly rated ASX 200 dividend shares that could be buys
• Fortescue (ASX:FMG) share price within arms’ reach of all-time highs
• BHP (ASX:BHP) share price hits new all-time high on Tuesday
• Here’s why the Wesfarmers (ASX:WES) share price is up 7% in a month
• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News

Motley Fool contributor Tony Yoo owns shares of Avita Medical Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Avita Medical 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 Rio Tinto Limited (ASX: RIO) share price is reaching new highs. But it may also be a large dividend opportunity over the next 12 months.

Rio Tinto is one of the largest iron ore miners in the country. According to the ASX, it has a market capitalisation of over $48 billion.

It wasn’t long ago that the huge resources business released its second quarter production result.

Quarterly production numbers

The miner revealed that in the second quarter of 2021, its Pilbara iron ore production was down 9% against the prior corresponding period (pcp) to 75.9 Mt. Compared to the first quarter of 2021, production was down 1%.

The company explained that the reduction compared to last year was due to above average rainfall in the West Pilbara, shutdowns to enable replacement mines to be tied in, processing plant availability, and “cultural heritage management”. Ongoing COVID-19 restrictions and a tight labour market have further impacted the miner’s ability to access experienced contractors and particular skill sets.

It’s expecting iron ore shipments to be at the low end of its guidance range for the 2021 year (325 Mt to 340 Mt), which remains subject to COVID-19 disruptions, tie-in and ramp up of brownfield replacement mines and management of cultural heritage.

Looking at the other production numbers that Rio Tinto released, against the pcp, bauxite was down 6% to 13.7 Mt, aluminium was up 4% to 816 kt, mined copper was down 13% to 115.5 kt, titanium dioxide slag was up 14% to 298 kt, IOC (Iron Ore Company of Canada) iron ore pellets and concentrate was down 2% to 2.7 Mt.

The Rio Tinto CEO Jakob Stausholm provided some commentary about its quarter:

The global economy, in-particular China, recovered strongly and we are intensely focused on servicing our customers with as much product as we can…Heightened COVID-19 constraints, which resulted in numerous travel restrictions, added further pressure on the business and limited our ability to access additional people, particularly in Western Australia and Mongolia, in order to deliver operational improvements or maintenance initiatives and accelerate projects.

Is the Rio Tinto share price a dividend opportunity?

Different brokers have different thoughts about Rio Tinto.

For example, Credit Suisse has a price target of $133 on the business, so it’s not expecting the share price to do much over the next 12 months. The dividend is a positive according to the broker. It’s expecting a dividend of $15.18 per share in FY21 and an annual dividend of $10.10 in FY22, translating to a fully franked dividend yields of 11.4% and 7.6%.

But UBS is very different with its price target – it rates Rio Tinto as a sell with a price target of $104. However, the broker is expecting the iron ore price is going to fall into 2022 and further beyond that. It has guided for a FY21 dividend of $21.38 and a FY22 dividend of $12.73 – which is more than Credit Suisse is forecasting. UBS is expecting the fully franked yields for FY21 and FY22 to be 16% and 9.6%.

The post Is the Rio Tinto (ASX:RIO) share price a good dividend opportunity? appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price within arms’ reach of all-time highs
• Rio Tinto (ASX:RIO) share price rises despite aluminium production cuts
• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News
• What to expect from the ASX 200 during earnings season
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher

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

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Luckily for income investors in this low interest rate environment, the ASX 200 is home to a number of quality shares that are forecast to pay generous dividends in the near term.

Two ASX 200 dividend shares that could be in the buy zone are listed below:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share for income investors to look at is BHP. This mining giant could be a great option due to its very positive dividend outlook for the coming years.

BHP’s positive outlook is being underpinned by its world class operations, favourable commodity prices, and strong balance sheet. These have positioned BHP to return the majority of its significant free cash flow to shareholders in the near term.

One broker that expects this to be the case is Macquarie. Its analysts are bullish on BHP due partly to iron ore prices, which are well ahead of consensus forecasts. Macquarie has an outperform rating and $60.00 price target on the company’s shares.

As for dividends, Macquarie is forecasting fully franked dividends of ~$3.72 in FY 2021 and $3.61 per share in FY 2022. Based on the latest BHP share price of $53.36, this will mean generous yields of 7% and 6.8% over the next two years.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share to look at is Telstra. This is thanks to its increasingly positive outlook from its 5G leadership, cost cutting, rational competition, and its corporate restructure and asset monetisation plans.

And although the Telstra share price has been in fine form this year, a number of analysts still see a lot of value in it.

For example, Goldman Sachs remains very positive on Telstra and currently has a buy rating and $4.20 price target on its shares. The broker also believes the telco giant is well-placed to continue paying its current 16 cents per share fully franked dividend until FY 2023. After which, the broker is forecasting a long-awaited dividend increase to 18 cents per share in FY 2024.

Based on the Telstra share price of $3.80, this will mean yields of 4.2% until FY 2023 and then 4.7% in FY 2024.

The post 2 highly rated ASX 200 dividend shares that could be buys appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares were the most heavily traded today
• Fortescue (ASX:FMG) share price within arms’ reach of all-time highs
• BHP (ASX:BHP) share price hits new all-time high on Tuesday
• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News
• The Telstra (ASX:TLS) share price is down 35% in 5 years. But have the dividends paid off?

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 owns shares of and has recommended 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index ended the day 0.5% higher at 7,431.4 points.

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

ASX 200 futures pointing lower

The Australian share market is poised give back some of its gains on Wednesday. This follows a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower this morning. On Wall Street, the Dow Jones fell 0.25%, the S&P 500 dropped 0.5%, and the Nasdaq tumbled 1.2%.

Virgin Money UK Q3 update

The Virgin Money UK CDI (ASX: VUK) share price could push higher today following the after-hours release of its third quarter update. The UK bank reported a 0.7% increase in mortgages to 58.7 billion pounds and a 2.5% lift in personal lending to 5.2 billion pounds. Another positive was a small increase in its net interest margin to 168bps. Virgin Money shares on the London Stock Exchange rose 2% overnight, compared to a 0.4% decline by the FTSE.

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.2% to US$71.79 a barrel and the Brent crude oil price is up 0.1% to US$74.58 a barrel. Undersupply forecasts were offset by COVID concerns.

Oil Search given buy rating

The Oil Search Ltd (ASX: OSH) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker put a buy rating and $5.15 price target on the energy producer’s shares following its second quarter update. Goldman said: “OSH retains the highest oil-beta in the sector and the strong oil price outlook helps to reduce balance sheet concerns, where we expect FCF yield of ~15%, which may be a further driver of corporate appeal.”

Gold price flat

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price traded flat. According to CNBC, the spot gold price is fetching US$1,799.7 an ounce. Traders are awaiting comments from the US Federal Reserve when it emerges from its two-day meeting on Wednesday.

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

More reading

• ASX 200 rises, Temple & Webster surges, Japara soars
• These 3 ASX 200 shares were the most heavily traded today
• World’s largest fund manager says ASX volatility a great buying opportunity
• Own Santos (ASX:STO) shares? What to look out for this reporting season
• ASX 200 midday update: BlueScope & OZ Minerals updates impress

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 Insurance Australia Group Ltd (ASX: IAG) share price has been a mixed performer in 2021

Since the start of the year, the insurance giant’s shares have risen 5%.

This means the IAG share price is trailing the S&P/ASX 200 Index (ASX: XJO), which is up 11% year to date.

Is the IAG share price underperformance a buying opportunity?

The team at Goldman Sachs has been looking over IAG’s preliminary full year result to see if there’s an investment opportunity here.

At this point, its analysts are sitting on the fence and have retained their neutral rating and trimmed the price target on the insurance giant’s shares to $5.41.

Based on the current IAG share price of $4.95, this implies potential upside of 9.3% over the next 12 months excluding dividends.

And with Goldman forecasting a partially franked 4.9% dividend yield in FY 2022, this will mean a total potential return of over 14%. Not too shabby for a neutral rating.

What did Goldman say?

Goldman Sachs appears to be concerned mainly by lingering reserve strengthening and its valuation in comparison to industry peer Suncorp Group Ltd (ASX: SUN).

It commented: “IAG’s overriding message was that the management team have building confidence in the outlook, and to this end we didn’t feel the market was expecting margin guidance to be reinstated, or scenarios where a result >15% was feasible. Nonetheless a third consecutive period impacted by reserve strengthening, alongside margin targets which still appear fairly one-dimensional in domestic commercial repricing aren’t immediately enticing (given poor results to-date).”

“On balance, we downgrade our FY21-FY23 cash EPS by 2%/4%/2%, and as a result our 12m TP shifts to A$5.41 from A$5.66. This leaves IAG is trading at 18.3x our 12m fwd EPS, broadly in line with its five year average and c.3 PE points above SUN (if we adjust for SUN’s FY22 one-off costs), also broadly in line with its five year average premium,” it concluded.

Goldman currently has a buy rating and $12.87 price target on Suncorp shares.

The post Is the IAG (ASX:IAG) share price in the buy zone? appeared first on The Motley Fool Australia.

More reading

• Own IAG (ASX:IAG) shares? Here’s what to look for during reporting season
• 5 things to watch on the ASX 200 on Monday
• ASX 200 midday update: Crown-Star merger talks end, Evolution jumps
• IAG (ASX:IAG) share price drops on FY 2021 update and guidance
• IAG (ASX:IAG) share price climbs on new leadership appointment

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 owns shares of and has recommended Insurance Australia Group 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 looking for some excellent ASX dividend shares to add to your income portfolio?

Then you might want to look at the ones listed below. Here’s what you need to know about these dividend shares:

Fortescue Metals Group Limited (ASX: FMG)

The first ASX dividend share to look at is Fortescue. It is one of the world’s largest producers of iron ore, with world class 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 and its low cost guidance of US$13.50 to US$14.00 per wet metric tonne.

Ord Minnett is very positive on the company and is forecasting fully franked dividends of $3.33 per share in FY 2021 and $2.90 per share in FY 2022. With the Fortescue share price currently fetching $25.82, this will mean massive dividend yields of 12.9% and 11.2%, respectively.

Its analysts have a buy rating and $30.00 price target on the company’s shares.

Stockland Corporation Ltd (ASX: SGP)

Another ASX dividend share to look at is Stockland. It is a property company which owns, manages and develops a diverse range of property assets. These include retirement villages, retail centres, business parks, offices, and logistics centres.

It also just has announced a binding agreement to acquire Queensland based Halcyon Group’s land lease communities business for $620 million. This comprises 3,800 sites across 13 land lease communities, made up of six established land lease communities, four communities in development, and three projects in planning.

Morgan Stanley is feeling bullish about Stockland and currently has an overweight rating and $5.00 price target on its shares.

Its analysts are also forecasting some generous distributions in the near term. Morgan Stanley has pencilled in distributions of 24.6 cents per share in FY 2021 and then 26.6 cents per share in FY 2022. Based on the current Stockland share price of $4.37, this will mean yields of 5.6% and 6.1%, respectively.

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

More reading

• Fortescue (ASX:FMG) share price within arms’ reach of all-time highs
• What to expect from the ASX 200 during earnings season
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Why investors are looking at the Fortescue (ASX:FMG) share price
• 2 buy-rated ASX dividend shares with big fully franked yields

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 latest company gaining the backing of National Australia Bank Ltd’s (ASX: NAB) NAB Ventures is pocket money app for kids, Spriggy.

Founders Alex Badran and Mario Hasanakos announced today that Spriggy raised $35 million in its series-B funding round.

The funds will be put towards the company’s growth plans, which require more dedicated designers, engineers, and problem solvers.

Spriggy springs from financial education

A Sydney-based startup in the fintech space — that’s a line we tend to hear a lot. However, where Spriggy differs is the demographic it’s aimed towards.

Now boasting more than 400,000 mums, dads, grandparents, and kids, the company offers an app that gives kids the opportunity to explore and learn finances while maintaining some parental controls.

Through the app, parents can stipulate pocket money for jobs, create savings goals, and monitor spending. Whereas on the kids’ side, the app offers a means of learning about money (whether earning, saving, or spending it) in the modern world.

Do your kids think money grows on trees?

Learning how to earn money from a young age will teach them how to handle money with confidence in the future.

Use Spriggy Jobs to teach your kids how to earn money around the house. Follow these steps and get them set up today! pic.twitter.com/TMEANAY8kX

— Spriggy (@spriggyofficial) June 15, 2021

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

Spriggy’s co-founder and co-CEO Mario Hasanakos said:

The biggest pain point or mistake we see is parents forgetting to pay pocket money because they don’t have cash on them, or they’re just busy running the household… That means the child doesn’t have regular exposure to money and then they don’t build those regular habits over time.

The company makes money by charging a membership fee of $30 per child per year. This single fee enables card locking, automatic payments, merchant restrictions, and more.

NAB Ventures funding outside the ASX

According to the announcement, NAB Ventures is the newest investor in Spriggy. Existing investors Grok Ventures and Perennial Value Management also took part in the $35 million funding round.

Furthermore, the funding will help the company expand upon its current feature set across a two-year period. From inspecting the company’s website, it appears it is also moving into investing with Spriggy Invest.

NAB Ventures managing director Todd Forrest explained why the venture arm of the ASX-listed big four bank is investing in Spriggy.

It’s so easy for young people to set up 10 different accounts, trade on credit and they can lose their money so quickly. That’s why we’re investing in Spriggy, which is building tools for young people to manage money in a completely digital environment, which is exactly how it works for adults.

Todd Forrest

Mr Forrest also mentioned it is a strategic investment for NAB Ventures. He added it could bring the app to its members of the ASX-listed bank, NAB.

The post Meet Spriggy, NAB Ventures’ latest investment outside the ASX appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
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• It hasn’t been a great month so far for the NAB share price
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Motley Fool contributor Mitchell Lawler 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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One of the best performers on the All Ordinaries index on Tuesday was the Temple & Webster Group Ltd (ASX: TPW) share price.

The online furniture and homewares retailer’s shares surged as much as 15% higher to $13.33 at one stage.

The Temple & Webster share price ultimately gave back some of these gains but still ended the day 7.5% higher at $12.47.

Why was the Temple & Webster share price racing higher?

Investors were bidding the Temple & Webster share price today following the release of its full year results.

That release revealed that the company’s strong form continued in FY 2021, with record revenue, profits, and customer numbers.

For the 12 months ended 30 June, Temple & Webster delivered an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. The latter would have been even stronger had it not been for a one-off distribution cost of $2.9 million related to shortages in available 3PL space and port related issues. These issues have now been resolved.

What else?

Also supporting the Temple & Webster share price was management’s update on its performance so far in FY 2022.

It advised that the company’s revenue between 1 July to 24 July had grown by 39% compared to the prior corresponding period. This is particularly impressive given the strong sales it was cycling during this period.

Management chat

I was fortunate to have a chance to speak with Temple & Webster’s CEO Mark Coulter and CFO Mark Taylor following the release.

Mr Coulter appeared rightfully pleased with the FY 2021 result and spoke very positively about the future.

He highlighted the company’s leadership position in an online furniture and homewares market which is still in the early stages of its shift online.

In fact, you only need to look at the US market to see just how far behind Australia is and how much of a runway for growth Temple & Webster has.

At present, approximately 25% of US furniture and homeware sales are made online. Whereas in Australia, an estimated 7% to 9% of sales industry sales were made online in 2020.

As adoption increases, Temple & Webster stands to benefit greatly. Which is why the company is accelerating its investment in future growth to take market share. This is with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in Australia.

The Temple & Webster share price is up 51% since this time last year.

The post Why the Temple & Webster (ASX:TPW) share price zoomed 15% higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Temple & Webster surges, Japara soars
• Why BlueScope, Japara, OZ Minerals, & Temple & Webster are storming higher
• 2 top ASX growth shares reporting strong growth
• Temple & Webster (ASX:TPW) share price charges 7% higher on strong FY 2021 result
• 3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy

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 Temple & Webster Group Ltd. 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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