According to research by Fidelity, as of 31 December, the Australian share market has generated an average total return of 8.55% per annum over the last 30 years.

This means that if you had made a single investment of $25,000 into the share market in 1991 and earned the market return, it would have grown to just under $300,000 today. This demonstrates why buy and hold investing can be such a rewarding endeavour and why Warren Buffett is such a big advocate of the strategy.

With that in mind, here are a couple of ASX shares that have been tipped as top long term options for investors:

Hipages Group Holdings Ltd (ASX: HPG)

The first buy and hold option to consider is Hipages. It is a growing Australian-based online platform and software as a service (SaaS) provider with a focus on connecting tradies with residential and commercial customers. From its platform, it provides job leads from homeowners and organisations looking for qualified professionals.

At present, the company is capturing around 5% of total industry advertising spend. However, analysts at Goldman Sachs see scope for this to increase to levels enjoyed by property listings company REA Group Limited (ASX: REA) in the future as it builds out its ecosystem.

Goldman explained: “We see HPG as an attractive medium-term growth stock – HPG currently captures c.5% of the total industry advertising spend; by contrast REA/CAR capture c.40-60% of spending in their respective categories. As HPG builds out its ecosystem (including the imminent launch of the new “TradieCore” field service software solution), we see scope for HPG to increase its share towards these levels over the long term as the marketplace leader.”

The broker currently has a buy rating and $3.40 price target in Hipages’ shares.

Nanosonics Ltd (ASX: NAN)

Another buy and hold option to consider is Nanosonics. It is a medical device company with a focus on infection prevention. This is something which is growing in importance right now because of the pandemic.

At present, the company generates all its revenue from its industry-leading trophon EPR disinfection system for ultrasound probes. This comes from both unit sales and the consumable products the system requires.

The latter has been growing strongly over the last few years thanks to its expanding footprint. In fact, management estimates that there are now 80,000 patients protected from the risk of cross contamination every day because the ultrasound probe has been high-level disinfected with trophon.

Pleasingly, it may not be long until Nanosonics has another product to boost its revenues. Management is working on several new products that are targeting unmet needs with similarly sized addressable markets.

UBS is very positive on the company. The broker has a buy rating and $7.00 price target on its shares. It believes Nanosonics is a high-quality structural growth story in a post-COVID world.

The post 2 excellent ASX shares for buy and hold investors 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 Hipages Group Holdings Ltd. and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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 NEXTDC Ltd (ASX: NXT) share price has been a strong performer over the last 12 months.

Since this time last year, the data centre operator’s shares have rallied 22% higher.

Can the NEXTDC share price keep climbing?

One leading broker that believes the NEXTDC share price can still run a lot higher from here is Goldman Sachs.

According to a note released this morning, the broker has reiterated its conviction buy rating and put a $14.80 price target on the company’s shares.

Based on the current NEXTDC share price of $11.80, this price target implies potential upside of 25% over the next 12 months.

What did Goldman say?

Goldman notes that one of NEXTDC’s key competitors, Equinix, recently hosted an analyst day and highlighted the robust outlook for interconnected data centres.

Equinix advised that it expects FY 2021-2025 revenue to grow at a compound annual growth rate (CAGR) of 7% to 9%. It also estimates that its total addressable market (TAM) will grow from US$60 billion to US$80 billion by FY 2025.

This appears to support Goldman’s view that NEXTDC is well-positioned to deliver strong revenue and EBITDA growth over the coming years.

Goldman commented: “We remain high-conviction on the growth profile ahead, forecasting +37MW contract wins across FY22-23E (=65% conversion of options). Combined with recent share price underperformance, this gives an attractive growth adjusted valuation. We reiterate our Buy (on CL) on NXT, the most compelling growth story in our coverage.”

Anything else?

In addition to the above, the broker notes that merger and acquisitions activity is continuing in the global data centre market and this could soon include NEXTDC. Goldman suspects that the company could be interested in acquiring the Australian assets of Global Switch.

It estimates that NEXTDC would require $550 million to $900 million of equity if acquired for $1.2 billion to $1.6 billion. This would represent a 14-18x EV/EBITDA applied to calendar year 2019 EBITDA. Though, it acknowledges that the company has not confirmed whether it would be interested in such an acquisition. This might be something for investors to look out for.

The post Leading broker tips NEXTDC (ASX:NXT) share price to race higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. 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 some high-quality S&P/ASX 200 Index (ASX: XJO) shares that might be excellent ideas to consider.

The below two businesses are two of the global leaders at what they do and they might continue to be good investments:

Xero Limited (ASX: XRO)

Xero is one of the world leaders in cloud accounting software. It aims to provide beautiful software that “connects people with the right numbers anytime, anywhere, on any device.”

The ASX 200 share said that for accountants and bookkeepers, Xero helps build a trusted relationship with small business clients through online collaboration.

It has a number of useful tools. One example is that business owners might be able to get paid faster. Xero says that businesses can improve cash flow by getting invoices paid faster on Xero with time-saving tools and reminders.

Xero has more than 2.7 million subscribers worldwide. FY21 saw subscribers rise by 20%, with Australian subscribers going up 22% to 1.1 million and UK subscribers growing 17% to 720,000. The strongest growth rate was with the rest of the world subscribers, which increased 40% to 175,000.

The above subscriber growth helped operating revenue increase by 18% to NZ$849 million. Xero’s gross profit margin increased 0.8 percentage points to 86% during FY21.

Management are very clear with the goals for the business:

Xero will continue to focus on growing its global small business platform and maintain a preference for reinvesting cash generated, subject to investment criteria and market conditions, to drive long-term shareholder value.

Macquarie Group Ltd (ASX: MQG)

The global investment bank has seen its share price go up 30% over the last year. Over the last six months, Macquarie shares have risen 8.5%.

Macquarie has proven that it is capable of producing profit despite the impacts of COVID-19. It has various business units – some are cyclical whereas others are ‘annuity-like’. Macquarie Asset Management is one of the biggest infrastructure managers in the world.

The annuity businesses provide a fairly consistent and defensive source of earnings for the ASX 200 investment bank.

However, there are also times when the cyclical parts of the business can power profit higher. That happened in FY21 when net profit increased by 10% on FY20 to $3 billion. The commodities and global markets (CGM) division generated profit growth of 50% with profit helped by the short-term client demand for the supply of gas and power in North America during extreme winter conditions.

Looking at Macquarie’s outlook, the CEO Ms Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets, strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost saving initiatives and efficiency, a strong and conservative balance sheet and a proven risk management framework and culture.

The post 2 excellent ASX 200 blue chip shares to consider 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 Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Xero. 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 rates still at record lows, the share market remains arguably the best place to earn a passive income.

But which dividend shares should income investors be buying? Two worth considering are listed below. Here’s why they have been tipped as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price has been a strong performer in 2021. Since the start of the year, the banking giant’s shares have risen a sizeable 22%.

This strong return has been driven by the bank’s impressive performance so far in FY 2021. For example, during the first half, ANZ achieved a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

The good news is that analysts at Morgans are confident that there will be more of the same in the second half and beyond. In light of this, the broker recently retained its add rating and lifted its price target on the company’s shares to $34.50.

Morgans is also forecasting fully franked dividends of $1.45 and $1.63 per share over the next two years. Based on the current ANZ share price of $28.04, this will mean yields of 5.2% and 5.8%, respectively.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another ASX dividend share to look at is Sydney Airport. Although the recent COVID outbreak in Sydney is likely to hit the airport operator hard in the near term, its longer term outlook remains as positive as ever.

This is thanks to increasing domestic tourism and its position as the main gateway into Australia. The latter is likely to lead to a strong increase in passenger numbers once international borders finally open again.

Goldman Sachs is a fan of the company and believes it would be worth considering a patient investment. It is forecasting an 8.8 cents per share dividend in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $5.78, this will mean yields of 1.5% and 4.7%, respectively.

Goldman has a buy rating and $6.73 price target on its shares.

The post Why ANZ (ASX:ANZ) and this dividend share could be in the buy zone 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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If you’re on the lookout for some growth shares, then you might want to take a look at the ones below. They are all quality businesses which have been tipped as buys recently.

Here’s what you need to know about these top ASX growth shares:

Altium Limited (ASX: ALU)

The first growth share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platforms. With PCBs found inside almost all electronic devices, the company has been benefitting greatly from the proliferation of electronic devices due to the rapidly growing Internet of Things and artificial intelligence markets.

Analysts at Credit Suisse are positive on the company. The broker currently has an outperform rating and $42.00 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement and English language testing services. Although it has been hit hard by the pandemic, it has been tipped to come out of the crisis in an even stronger market position. Especially given how many of its smaller rivals have failed to survive the tough trading conditions.

Analysts at Morgans believe the company is very well-placed for growth post-pandemic. As a result, the broker has an add rating and $28.48 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final ASX growth share to consider is Kogan. It is a rapidly growing ecommerce company which has been a big winner from the shift to online shopping. The good news is that the shift still has a long way to go, which should underpin strong sales growth for some time to come. And while Kogan is struggling with excess inventory and slowing sales right now, this is only expected to be a short term headwind.

Credit Suisse has an outperform rating and $17.93 price target on its shares. It remains very positive on its medium term growth prospects.

The post 3 stellar ASX growth shares named as buys 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 Altium, Idp Education Pty Ltd, and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Altium and 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower again. The benchmark index fell 0.3% to 7,275.3 points.

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

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% higher this morning. This follows a strong night on Wall Street which saw the Dow Jones rise 0.95%, the S&P 500 climb 0.6%, and the Nasdaq push 0.7% higher.

Oil prices near three-year highs

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$73.30 a barrel and the Brent crude oil price is up 0.5% to US$75.55 a barrel. Drawdowns in U.S. inventories and accelerating German economic activity pushed oil prices close to three-year highs.

NEXTDC given conviction buy rating

The Nextdc Ltd (ASX: NXT) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker has reiterated its conviction buy rating and put a $14.80 price target on the data centre operator’s shares. This follows a recent analyst day held by rival Equinix which highlighted the robust outlook for interconnected data centres.

Iron ore prices soften

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch on Friday after the iron ore price softened. According to Metal Bulletin, the spot iron ore price fell 1.2% overnight to US$213.46 a tonne.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week in the red after the gold price dropped again. According to CNBC, the spot gold price is down 0.55% to US$1,773.90 an ounce. Traders were selling the precious metal after comments out of the US Fed.

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

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

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If you’re not averse to investing in the resources sector, then you may want to look closely at the highly rated ASX mining shares listed below.

They have both been rated as buys recently and tipped to generate strong returns for investors. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a top option in the mining sector for investors to consider. This is thanks to its world class, low cost, and diverse operations and favourable commodity prices.

The latter is particularly the case with iron ore and oil prices. Iron ore prices are currently trading within sight of record highs, whereas oil prices have just hit two-year highs. Based on BHP’s costs guidance, it is generating significant free cash flow based on current spot prices.

Analysts at Macquarie are very positive on the company. The broker is expecting a record second half result in August, underpinning generous cash returns to shareholders.

Macquarie currently has an outperform rating and $63.00 price target on BHP’s shares. This compares to the latest BHP share price of $47.60.

South32 Ltd (ASX: S32)

Another mining share to consider is South32. This diversified mining company has exposure to commodities including alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

But the one getting analysts excited is aluminium. Analysts at Goldman Sachs are forecasting a major aluminium deficit by the middle of the decade. This is expected to lead to a significant increase in prices, boosting the company’s earnings and dividends greatly.

Goldman said it has “little doubt that investors should view aluminium as in the early stages of a multi-year bull market.”

In light of this, the broker currently has a conviction buy rating and $3.80 price target on South32’s shares. This compares to the latest South32 share price of $2.91.

The post 2 ASX mining shares that could be buys 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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If you’re searching for growing dividends, then you might want to look at the ASX shares listed below.

They have been growing their dividends at a decent rate and look well-positioned to continue doing so in the years to come. Here’s what you need to know about these ASX dividend shares:

Coles Group Ltd (ASX: COL)

Coles is of course one of Australia’s big-two supermarket operators. In addition to this, it operates other businesses such as flybuys and Liquorland.

Thanks to its defensive qualities and strong market position, the company has been growing strongly during the pandemic. And while its growth could turn negative in the immediate term due to heightened sales in the prior corresponding period, its sales are still growing nicely on a two-year basis.

Furthermore, the company has been tipped to resume its growth in FY 2022, leading to another dividend increase.

For example, Goldman Sachs is forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022. Based on the current Coles share price, this will mean fully franked yields of 3.7% and 4%, respectively, over the next two years.

Rural Funds Group (ASX: RFF)

Another ASX share that has been growing its dividend at a solid rate in recent years is Rural Funds. It is an agricultural-focused property company with a diverse portfolio of assets. This includes almond and macadamia orchards, premium vineyards, water entitlements, cattle, and cropping assets.

The company’s properties are leased to high quality tenants on very long term agreements. And with rental increases built into these agreements, the company appears well-placed to grow its distribution by its target of 4% per annum.

Management has provided distribution guidance for 11.28 cents per share in FY 2021 and then 11.73 cents per share in FY 2022. This implies yields of 4.4% and 4.6%, respectively.

The post 2 growing ASX dividend shares for income investors 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 owns shares of and has recommended COLESGROUP DEF SET and RURALFUNDS STAPLED. 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) dropped by another 0.3% today to 7,275 points.

Here are some of the highlights from the ASX today:

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down around 1% after making an announcement about its New Zealand business.

The bank said it’s retaining its 100% ownership of Westpac New Zealand Limited (WNZL) and will not proceed with a demerger of its Westpac New Zealand business.

Peter King, the Westpac CEO, said:

After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders.

Our review identified opportunities to improve services for customers and value across the WNZL business and we will progress these with the WNZL Board and management team.

WNZL is a strong business that has been serving New Zealand for 160 years. We remain committed to delivering for customers and fulfilling our purpose of helping Australians and New Zealanders succeed.

Transurban Group (ASX: TCL)

The Transurban share price fell around 0.7% today after announcing its FY21 final distribution.

The ASX 200 toll road business announced that a distribution totalling 21.5 cents per stapled security will be paid for the six months ending 30 June 2021.

That will include a partly franked distribution of 20.5 cents from Transurban Holding Trust, as well as a 1 cent fully franked dividend from Transurban Holdings Limited.

This takes the total FY21 distribution to 36.5 cents per stapled security, of which 1 cent is fully franked.

Woolworths Group Ltd (ASX: WOW) and Endeavour Group Limited (ASX: EDV)

The Woolworths share price was the worst performer in the ASX 200 today after the demerger of Endeavour Group. With a sizeable part of the business separated, investors sent the Woolworths share price down 11.2%.

Endeavour Group’s share price finished the day at $6.02.

This divested business is described as Australia’s leading retail drinks and hospitality business. It has a number of different businesses including Dan Murphy’s, BWS and ALH Hotels.

The post ASX 200 drops again, Westpac falls, Transurban down 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. 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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Emerald Resources NL (ASX: EMR) shares surged in morning trade after the mining company released a progress update on its 100% owned, flagship Okvau gold mine. The company announced it had its maiden gold pour, producing two gold bars weighing a combined 8.6kg.

As a result, the Emerald Resources share price jumped up by more than 12% this morning. Unfortunately for shareholders, the surge was short-lived, with the company’s shares closing flat for the day at 90 cents apiece.

First mover advantage

According to Emerald Resources, it was a first mover in the emerging gold province in Cambodia, securing a mineral investment agreement and an industrial mining licence over the Okvau Gold Project.

The Okvau mine’s gold production is expected to output more than 100,000 ounces of gold per annum. This is in line with the company’s definitive feasibility study released on 1 May 2017 and subsequently updated on 26 November 2019.

What did management say?

The past two months have been busy for Emerald Resources. The company has been focused on the construction of the Okvau substation and connecting the remotely located plant to key utilities.

Today’s update was seen “as a major milestone for the company and Cambodia, as the project becomes the first modern large scale mine to operate in the country”, according to Emerald Resources managing director Morgan Hart.

He further stated that “This marks the creation of a new industry for Cambodia bringing opportunities and benefits for the people of Cambodia”.

Hart also paid kudos to his team which had remained on schedule and on budget for the first gold pour, despite the logistical challenges brought on by the pandemic. 

Emerald Resources share price snapshot

Over the last 12 months, the Emerald Resources share price is up over 68%, beating the ASX Materials sector by around 42% over the same time. Based on the current share price, the gold miner has a market capitalisation of around $464 million.

The post Why the Emerald Resources (ASX:EMR) share price jumped 12% this morning appeared first on The Motley Fool Australia.

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Motley Fool contributor Frank Tzimas 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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