Fortunately, in this low interest rate environment, the Australian share market has plenty of options for investors looking to generate a passive income.

Two dividend shares that have recently been named as buys are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

This supermarket operator has been performing very strongly over the last 12 months. This has been driven by a very favourable shift in consumer behaviour during the pandemic. 

And while the tailwinds it has been experiencing are easing and growth will be hard to come by in the second half of FY 2021, analysts at Goldman Sachs remain positive on the company.

They recently reiterated their buy rating and $20.70 price target on its shares. Goldman is positive on Coles’ medium term outlook thanks to its strong market position, Refreshed Strategy, and focus on automation.

The broker is forecasting a 62 cents per share dividend in FY 2021 and then a 67 cents per share dividend in FY 2022. Based on the current Coles share price, this represents fully franked 3.9% and 4.2% yields.

Integral Diagnostics Ltd (ASX: IDX)

Another ASX dividend share that Goldman Sachs is a fan of is Integral Diagnostics. It operates a total of 72 radiology clinics across Australia, including 26 comprehensive sites.

Integral Diagnostics has been growing strongly and has continued this positive form in FY 2021. For the six months ended 31 December, the company delivered a 29.5% increase in revenue to $170.7 million and a 61.1% lift in net profit after tax to $23.2 million.

Goldman Sachs is confident there will be more of the same in the future. It notes that Integral Diagnostics is a well-run business in an attractive industry, with a relatively secure volume profile of mid/high single digit growth. In addition to this, the broker sees opportunities for the company to accelerate its growth through developments and acquisitions.

Its analysts currently have a buy rating and $5.50 price target on the company’s shares. They are also expecting Integral Diagnostics to pay fully franked dividends of 11.4 cents, 13.9 cents, and 15.4 cents per share over the next three years. Based on the latest Integral Diagnostics share price of $4.74, this represents yields of 2.4%, 2.9%, and 3.25%.

More reading

• 3 ASX dividend shares with yields over 4% right now
• Here’s why the Food Revolution (ASX:FOD) share price jumped 8% today
• 2 top ASX ETFs to buy right now
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• ASX retail shares beware: Aldi e-commerce is coming

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

Rather than deciding on which individual shares you should put your funds into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, I have picked out three ETFs which could be quality long term options for investors. They are as follows:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to a number of exciting tech shares in the Asian market. This includes the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. There are also a number of lesser known but high quality companies in the fund such as Netease and Pinduoduo. Collectively, they look well-positioned for growth over the next decade and beyond.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF to look at is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this is heavily under-represented on the ASX. Which is a real shame, as it is a rapidly growing area of the market. Among the companies in the fund are cyber security giants Accenture, Cloudflare, Crowdstrike, and Okta. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A final ETF to consider is the BetaShares NASDAQ 100 ETF. This ETF will give you exposure to the 100 largest non-financial shares on the famous NASDAQ index. This means you’ll be buying a slice of tech giants including Amazon, Apple, Facebook, and Microsoft, to name a few. Also included in the fund are non-tech stocks such as Starbucks, and Tesla. Given the positive long term outlooks of these companies, the BetaShares NASDAQ 100 ETF looks well-placed to generate solid returns for investors.

More reading

• 2 tech ETFs delivering strong long-term returns
• Afterpay and Zip were among the most traded ASX shares last week
• How to counter the ASX 200’s Achilles heel
• 3 top ETFs for ASX investors to buy
• 3 five-star ASX shares to buy in March

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia 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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There are two ASX shares that multiple brokers have named as a buy, so they could be worth looking at.

Brokers don’t get everything right, but it can be useful to know what they think are opportunities. Businesses that several brokers think are buys could be particularly interesting to investors:

Altium Limited (ASX: ALU)

Altium is one of the larger ASX tech shares that Aussies can invest in on the ASX. It specialises in electronic PCB software for engineers to design the products, devices and vehicles of the future.

There are currently at least four brokers that rate the Altium share price as a buy, including Morgan Stanley and Credit Suisse.

Brokers weren’t exactly impressed by the FY21 half-year result, noting the higher costs of the business and the underperformance against expectations.

Morgan Stanley also noted that Altium is now assuming that it will be able to find an acquisition, or acquisitions, that can plug the 2025 goal gap left by its weaker performance during COVID and the sale of the TASKING business.

The FY21 half-year result showed all the numbers going in the wrong direction – continuing revenue fell 4% to US$80 million, reported expenses rose 3% to US$53 million, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 15% to US$27 million and profit before tax declined 23% to US$20.7 million. Operating cashflow and the dividend also went backwards.

However, management are heavily focused on future growth with its Altium 365 product, which is a cloud collaboration platform. It could be important for winning over many more engineer customers into the future. Altium has a 100,000 subscriber goal for Altium Designer. 

According to Morgan Stanley, the Altium share price is valued at 50x FY21’s estimated earnings. Morgan Stanley has a price target of $37 on Altium.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of jewellery. Its aim is to “bring brilliantly affordable, on-trend jewellery to the world, whilst delighting our customers with our commitment to continually improve her Lovisa experience.”

There are currently at least three brokers that like the ASX retail share, including Morgans that rates Lovisa as a buy with a price target of $17.95.

The broker believes Lovisa will benefit from ANZ retail returning to a new normal quicker than other regions. Morgans thinks that the Beeline purchase was a good one and could help grow earnings nicely after the rebranding.

Last month the company reported that its revenue was down 9.8% in the first half of FY21 and the net profit after tax (NPAT) was down 22.6% to $27.8 million.

However, the company continues to grow its store numbers and it’s also seeing high levels of growth with its online offering – sales were up 335% during the half-year period.

With the Beeline acquisition, it’s now in a number of new markets in Europe – Germany, Switzerland, Netherlands, Belgium, Austria and Luxembourg. For a cost of just €70, Lovisa bought 114 stores, of which it expects to convert 90 to Lovisas and open for trade.

According to Morgans, the Lovisa share price is valued at 38x FY22’s estimated earnings.

More reading

• 2 of the best ASX growth shares to buy in April
• Where to reinvest your Fortescue (ASX:FMG) dividends
• Why the Xero (ASX:XRO) share price is outperforming today
• How to counter the ASX 200’s Achilles heel
• The Lovisa (ASX:LOV) share price is trading near record highs

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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 Australian share market hosts a large number of quality growth shares. In fact, there are so many to choose from, it can be difficult to know which ones to buy.

To narrow things down, I have picked out two ASX growth shares that are highly rated. Here’s why they could be top options in April:

Afterpay Ltd (ASX: APT)

One ASX growth share to consider buying is this buy now pay later (BNPL) giant. Especially given the recent pullback in the Afterpay share price which has been driven by weakness in the tech sector in response to rising bond yields.

One broker that remains very positive on the company is Bell Potter. It currently has a buy rating and $168.50 price target on the company’s shares.

Its analysts appear confident that Afterpay will continue to grow at a rapid rate for the foreseeable future thanks to customer and merchant growth, repeat use, its international expansion, and the launch of Afterpay Money.

In respect to the latter, the company intends to begin offering banking products such as transaction accounts via the Afterpay Money app in the coming months. But it is unlikely to stop there and has been tipped by Bell Potter to potentially expand its offering to cover personal loans and even mortgages.

Based on the latest Afterpay share price of $105.89, Bell Potter’s price target implies potential upside of 59%.

Altium Limited (ASX: ALU)

Another ASX growth share to look at is this electronic design software provider.

Altium is best-known for its Altium Designer and Altium 365 platforms but also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.

These platforms are industry-leading and used by many of the biggest companies in the world. This includes BAE Systems, Microsoft, and Tesla.

While the pandemic has impacted demand and stifled its growth, Altium looks well-positioned to accelerate its growth once the pandemic passes. Particularly given the huge tailwinds that it has in its sails from the booming internet of things and artificial intelligence markets. These are underpinning an explosion in electronic devices globally and supporting increased demand for its offering.  

UBS is a fan of the company. Last month the broker upgraded Altium’s shares to a buy rating with a $34.00 price target. Based on the latest Altium share price of $27.13, this implies potential upside of 25% over the next 12 months.

More reading

• How does the Afterpay (ASX:APT) share price size up against US-listed Affirm?
• Afterpay (ASX:APT) share price hits 3-month low: Time to buy?
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• Is the Affirm share price dragging ASX BNPL shares lower?
• Where to reinvest your Fortescue (ASX:FMG) dividends

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

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Warren Buffett has a long track record of generating high returns. One of the key tenets of his investment strategy is having a long-term focus when holding stocks in his portfolio.

This allows his holdings to deliver on their growth potential. It also means that he does not become overly excited following periods of impressive capital returns.

This approach may be especially useful in today’s stock market environment. The recent rally makes it easier to become overly confident in the prospects for equity markets, which may lead to poor decision-making.

Warren Buffett’s long-term focus

Many of Warren Buffett’s major portfolio holdings have been present for decades, rather than years.

In that time, they have often delivered strategy changes and capitalised on growth opportunities that are simply not possible to achieve in a matter of months. By allowing them the time they need to produce improving returns and higher profitability, Buffett has been able to enjoy higher returns than may have been possible if he had adopted a short time horizon.

This point is especially relevant right now. Many investors may have enjoyed strong returns from their portfolio holdings in recent months.

The stock market has experienced a rally that has pushed it to a new record high on a global basis. While it may now be tempting to sell stocks that have produced strong returns, and to buy others in their place, providing them with the time they need to deliver on their strategies could be a more logical approach.

Buffett’s investment fundamentals

Of course, Warren Buffett’s value investing approach means that he is likely to sell a stock if it becomes overpriced. Similarly, if there are other more attractive opportunities available then it can be worth offloading a stock to generate sufficient capital to take advantage of it. Therefore, a long-term approach may not always be the right move.

However, selling stocks because they have risen quickly in price over a short time period may not be a prudent move. It can lead to an investor missing out on future gains – especially since global economic forecasts are generally positive at the present time.

And, since the world economy has always recovered from its declines to post impressive turnarounds, there may be further opportunities for capital gains in the coming years.

A simple strategy

Clearly, Warren Buffett’s long-term approach may not prove to be the right one for every investor. As 2020 showed, a stock market crash can take place at any time and can wipe large profits from existing holdings.

However, through having a long-term viewpoint, it may be easier to spot potential mispricings among high-quality stocks. It may also provide greater scope to benefit from the impact of compounding in a likely period of long-term economic growth over the coming years.

As such, sticking with high-quality companies even after potential recent gains could be a shrewd move.

More reading

• 2 of the best ASX growth shares to buy in April
• Got money to invest? Here are 2 ASX shares to buy
• 5 steps to start building your portfolio now
• These were the best performers on the ASX 200 last week
• 2 compelling ASX payment shares to buy

Motley Fool contributor Peter Stephens 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 always different opportunities being presented with ASX shares, there are two in this article that could be worth thinking about.

Share prices are changing all the time, so sometimes good opportunities are fleeting if there’s a short-term dip in the price.

Businesses that are showing good scalability could be worth paying attention if profit grows faster than revenue:

Kogan.com Ltd (ASX: KGN)

Kogan.com is an e-commerce business that is growing particularly quickly. Its retail offering is resonating with shoppers as the business rapidly takes market share in the retail and services world.

The Kogan.com share price has fallen by 37% over the last two months. During that time period, the company actually reported a high level of growth in its half-year result.

Kogan.com’s active customer numbers rose by 76.8% to just over 3 million as people turned to online shopping to get the device, furniture or other items they were looking for. That’s why gross sales went up 97.4% to $638.2 million and revenue grew by 88.6% to $414 million.

The ASX share saw a record breaking Black Friday trading period with seven of the biggest ten trading days occurring within the days surrounding Black Friday.

Exclusive brands achieved revenue growth of 114.9%, with gross profit increasing 174.9%. This contributed 55% of the overall profit. Third party brands achieved growth of revenue and gross profit of 50.5% and 77% respectively. Kogan Marketplace saw gross sales increase by 194.3%.

Overall, Kogan.com achieved gross profit growth of 126.2% and net profit after tax (NPAT) grew 164.2% to $23.6 million.

The company’s margins continue to climb despite record amounts of investments in advertising and its operations. It has also made an acquisition called Mighty Ape in New Zealand which could grow profit significantly.

The decline of the Kogan.com share price has meant it’s now valued at under 20x FY23’s estimated earnings according to Commsec.

City Chic Collective Ltd (ASX: CCX)

Plus-size clothing retailer City Chic is a business that’s aiming to be a global leader in its category.

A few different brokers like City Chic right now and rate it as a buy, including Morgan Stanley which has a price target of $4.75.

It has strong platforms for growth with City Chic in Australia and New Zealand, Avenue in the US and Evans in the UK. Those northern hemisphere acquisitions have increased the total addressable market for City Chic quite considerably.

City Chic is generating high levels of online sales growth and could take more market share through this channel.

The ASX share is still on the lookout for other potential acquisitions that it can turn into more profitable online-only operators.

City City had a strong first half of FY21, with sales rising 13.5% to $119 million and net profit after tax growing 24.8% to $13.1 million.

According to Commsec, the City Chic share price is trading at 23x FY23’s estimated earnings.

More reading

• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?
• ASX retail shares beware: Aldi e-commerce is coming
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• 2 ASX retail shares delivering strong growth
• 2 ASX growth shares that could be strong buys

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a variety of reasons why you may be investing in ASX shares. It could be to save for retirement or to grow your wealth. You could also be investing to provide long-term financial security or to benefit from social trends you observe.

Regardless of the reasons why, building your portfolio will provide greater resources for your end goal. That’s why investors in ASX shares seek to increase the value of their investments over time. A larger portfolio means greater assets that can be used to fund a more comfortable lifestyle.

The size of your ASX share portfolio is a function of the amount invested, movements in share prices, and what you do with any returns received. You can’t influence share prices, but you can decide how much to invest and what to do with returns.

ASX shares produce returns either in the form of dividends or via capital growth. Dividends are the portion of profits that a company pays out to shareholders. Capital growth occurs when the share price increases above the price at which you bought the share.

Investors looking to build their portfolio can take advantage of both dividends and capital growth to grow their portfolio. 

Whether you’ve just entered the share market or have been investing for years, here are a few tips that can help you increase the size of your portfolio (and minimise risk) over the long term.

1. Contribute some savings 

If you want to start or add to your ASX portfolio, you will need some savings to invest. In order to amass savings, you will need to spend less than you earn.

For many people, the first step in building their wealth is examining their spending and understanding how they’re using their money. By exploring your spending patterns, you can gain an understanding of how you are allocating your income and make adjustments where required.

Utilising your resources more effectively will allow you to designate a greater proportion to savings, which can in turn be invested to add to your portfolio. 

2. Reinvest your dividends 

Some ASX shares pay dividends to shareholders which represent a distribution of profits by the company. What you do with those dividends is up to you.

If you want to build the size of your portfolio faster, you can reinvest dividends in the share market. This means you buy more shares with your dividends. These shares may in turn pay their own dividends. This allows you to benefit from compound returns, increasing your overall investment return. 

Many blue-chip ASX shares, such as Coles Group Limited (ASX: COL), BHP Group Ltd (ASX: BHP), and Telstra Corporation Limited (ASX: TLS), offer dividend reinvestment programs.

These programs allow shareholders to automatically reinvest dividends as additional shares in the relevant company. The benefit to shareholders is that they never receive dividends in their bank account, so they aren’t tempted to spend them.

They also save on brokerage fees that would normally apply to share transactions. If you don’t want to opt into a dividend reinvestment program, you could direct dividends into a separate account and use the funds to buy different ASX shares.

Over time, these additional investments will add to the value of your portfolio, allowing you to build your overall wealth. 

3. Diversify 

Whether you’re just starting out or have been investing for a while, you’ve probably heard of diversification.

So what is it? It’s similar to the old adage of not putting all your eggs in one basket. In share market terms, it means spreading your total investment over a range of ASX shares (and potentially international shares and other asset classes).

By spreading your investments in this way, you reduce the risk of your portfolio. Because different areas of the market react differently to the same event, having your investments allocated across a range of areas can help minimise overall risk. 

4. Hold on 

The share market goes up and down. This happens both on a day to day basis and over longer cycles. There is no guarantee that share prices will increase immediately or ever.

But over the long term, the share market as a whole tends to demonstrate positive returns. Individual ASX shares may see share prices soar, and others may see share prices flounder, but collectively, ASX shares have tended to provide positive returns over the long term.

For most investors, this means they also need to be in it for the long term. An investing time horizon of at least 5-7 years is recommended for share investments to allow time to ride out market cycles. It can be tempting to bail out when there is a market crash. However, this often proves to be a promising time to buy!

The S&P/ASX 200 Index (ASX: XJO) has risen 32% since the coronavirus market crash a year ago, providing those that bought at the bottom with an impressive return. 

5. Consider growth shares 

Depending on your reasons for investing, you may be more interested in growth or dividend shares. Dividend shares are known for paying dependable dividends. These ASX shares tend to be large, well-established businesses with reliable revenue streams, such as Commonwealth Bank of Australia (ASX: CBA).

Growth shares, on the other hand, tend to be companies at an earlier stage of their growth journey, with prospects for growing revenue and profits over time. Growth shares may not pay dividends, but many investors choose to invest in them in the expectation that they will in future and that the share price will increase in the meantime.

ASX shares such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are examples of growth shares. 

Foolish takeaway

Whatever your reason for wanting to grow your portfolio, these five tips will get you started. However you choose to go about it, the key is to be consistent and focus on the long term.

Share markets will fluctuate over time, but the longer your time horizon, the more time you have to ride out market fluctuations and benefit from the upside. 

More reading

• These were the best performers on the ASX 200 last week
• These were the worst performers on the ASX 200 last week
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200
• 2 top ASX ETFs to buy right now

Kate O’Brien owns shares of BHP Billiton Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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 back on form last week and stormed notably higher. The benchmark index ended the period 1.7% higher than where it started it at 6,824 points.

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

Crown Resorts Ltd (ASX: CWN)

The Crown share price was the best performer on the ASX 200 last week with a 19.6% gain. Investors were buying the casino and resorts operator’s shares after it received a takeover approach from Blackstone. The US investment company has made an unsolicited, non-binding, and indicative proposal to acquire all of the shares in Crown at $11.85 cash per share. This was a 20.1% premium to its last close price. The Crown board is still assessing the proposal.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was on form last week and stormed 14.2% higher. The catalyst for this was the grain exporter announcing new operating initiatives. These include expanding bulk materials for export, increasing utilisation at the Numurkah and West Footscray processing facilities, and a shift in the foods product mix to higher-value products. Management expects the initiatives to boost its operating earnings by $25 million by 2023-24.

Adbri Ltd (ASX: ABC)

The Adbri share price wasn’t far behind with an 11% gain despite there being no news out of the building materials company. This gain may have been driven by comments out of Brickworks Limited (ASX: BKW) when it released its half year results. The building products company revealed that demand was picking up in Australia. This could mean Adbri is experiencing similarly positive trading conditions.

Nufarm Ltd (ASX: NUF)

The Nufarm share price was a positive performer and rose 10.3% last week. This appears to have been driven partly by a broker note out of UBS. Its analysts believe the recent rainfall on the east coast will lead to positive agricultural conditions and support demand for Nufarm’s products. Another positive was that the floods in New South Wales were not in grain production areas. UBS has put a buy rating and $5.70 price target on its shares.

More reading

• 5 steps to start building your portfolio now
• These were the worst performers on the ASX 200 last week
• ASX dividend aristocrat? Here’s an ASX dividend share that has a shot
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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There are a few really high-performing ASX payment shares that are delivering good levels of profit growth right now.

Cash is steadily being replaced by electronic payments as the preferred month of sending money from one person or business to another.

These two ideas in-particular could be interesting to look at:

EML Payments Ltd (ASX: EML)

EML is one of the most diversified payment businesses on the ASX. It provides technology and systems for a wide array of clients. EML has prepaid offerings like gift cards, as well as gaming payouts, healthcare and government reimbursements and commission payments.

It has a number of global clients like the Queensland Government, Ladbrokes, Star Entertainment Group Ltd (ASX: SGR) and Sportsbet.

Over the last 12 months the company has partially suffered from a lack of economic activity in shopping centres in the northern hemisphere. But it’s seeing a recovery and the other parts of the business are more than making up for that decline.

The general purpose reloadable section, which includes things like salary packaging and gaming is performing particularly strongly. The non-PFS businesses of the ASX payments share saw like for like growth of 25% in the half-year FY21 result.

In that result, gross debit volume was up 54% to $10.2 billion, revenue grew 61% to $95.3 million and underlying net profit after tax (NPATA) rose 30% to $13.2 million.

According to Commsec, the EML share price is trading at 28x FY23’s estimated earnings.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is another ASX payments share that is delivering high levels of growth at the moment.

It’s seeing its process volumes boom during the COVID-19 pandemic as US churches and their communities stay connected. In the six months to 30 September 2020, the company saw a 48% increase in total processing volume to US$3.2 billion. Pushpay technology has a useful ability to livestream services to the congregation, as well as many other church management and donation tools.

Over time, Pushpay is targeting a market share of 50%, which could translate into US$1 billion of annual revenue for the business.

The company is proving its profitability and leverage with each result. Whilst processing volume rose 48% and operating revenue grew 53% to US$85.6 million, the business saw net profit after tax (NPAT) increase by 107% to US$13.4 million and the operating cash flow grew by 203% to US$27 million.

Management are particularly optimistic about the future of Churchstaq, which is an all-in-one engagement solution. It combines Pushpay’s giving and engagement solution with Church Community Builder’s church management systems functionality. Sales of the combined product outperformed internal expectations in the first half of FY21.

Pushpay continues to see limited expense growth – expenses only went up 16% in the half-year – and it’s expecting further margin improvements as it gets bigger. The gross profit margin increased from 65% to 68% in that most recent result.

According to Commsec, the Pushpay share price is valued at 24x FY23’s estimated earnings.

More reading

• Is the Pushpay (ASX:PPH) share price in the buy zone?
• Why Lynas, Oil Search, Pushpay, & Webjet shares are tumbling lower
• ASX 200 dips, travel shares drop, Pushpay soars
• Why Kathmandu, Pushpay, Sigma, & Vulcan shares are storming higher
• Here’s why the Pushpay (ASX:PPH) share price could surge higher today

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 recommends EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended EML Payments and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week certainly was a good one for the S&P/ASX 200 Index (ASX: XJO). Over the five days the benchmark index added 1.7% to end the period at 6,824 points.

Unfortunately, not all shares on the index were able to follow its lead. Here’s why these ASX 200 shares were the worst performers last week:

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price was the worst performer on the ASX 200 by some distance with a 26% decline. This decline was driven by news that the company’s Bibiani Gold Mine licence in Ghana has been terminated by the government. As a result, Resolute has been advised to cease all activities and operations at the site. Given that the company is currently in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million, it is unclear whether this deal will still go ahead.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price was out of form and sank 14% last week. Investors were selling the wealth management platform company’s shares after it announced that its deposit arrangement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) will end in 12 months. The agreement with ANZ currently provides a margin of 95 basis points above the overnight cash rate. Netwealth is trying to negotiate a new arrangement, but it is unlikely to be on as favourable terms. The HUB24 Ltd (ASX: HUB) share price sank 11.8% last week on the back of this news. Investors appear concerned it will also have its deposit arrangement terminated.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price tumbled 7.4% last week. The catalyst for this was news that its Founder and Chairman, David Teoh, has resigned from the company with immediate effect. Mr Teoh revealed that he felt that now was the right time to step aside and pursue other interests. Replacing him will be board member Canning Fok. Mr Teoh described Fok as “one of the most capable business leaders in the world.”

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price wasn’t far behind with a 7% decline. This was despite there being no news out of the rare earth producer. However, last week its rival Australian Strategic Materials Ltd (ASX: ASM) announced a $65 million placement. Some of these funds will be used to advance key FEED workstreams on the Dubbo Project in New South Wales. This project is aiming to compete with Lynas by supplying globally significant quantities of zirconium and rare earth materials.

More reading

• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• Top broker urging investors to take profit now on this outperforming ASX share
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200
• Why Galilee Energy, Hansen, Polynovo, & TPG shares are tumbling lower
• Why Galaxy, HUB24, Paradigm, & Telstra shares are pushing higher

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 Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 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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