• 2 high-yielding ASX dividend shares

    A handful of Australian $100 notes, indicating a cash position

    There are some ASX dividend shares that have high trailing dividend yields.

    Some businesses don’t pay any dividend at all, such as Xero Limited (ASX: XRO) and A2 Milk Company Ltd (ASX: A2M).

    However, there are others that have relatively high dividend yields:

    Pengana Capital Group Ltd (ASX: PCG)

    Pengana is a funds management business. It operates a number of different investment strategies including Australian small caps, a multi-cap ASX strategy, global small caps, global multi caps, global private equity, sustainable investing and so on.

    Over the last 12 months Pengana has paid dividends totalling $0.09 per share. That translates to a trailing grossed-up dividend yield of 7.6%.

    The funds under management (FUM) increased by 15% during the six months to 31 December 2020, ending at $3.59 billion. This was predominately thanks to investment performance adding $463 million to the FUM total.

    Pengana’s FUM has steadily climbed during the second half of FY21. At the end of April 2021, it had risen to $3.77 billion.

    The ASX share explains that growth of its Australian FUM is limited due to market dynamics and capacity constraints. An aim over the last few years has been to increase its exposure to international investing. At the end of FY17 international FUM made up 32% of the total, at the end of December 2020 it was 53%.

    Pengana said that there’s “significant” further capacity in various international equity strategies, including Pengana Equity Trust Pvt (ASX: PE1).

    The fund manager also said that it has an opportunity to diversify further over time by adding new strategies.

    Pacific Current Group Ltd (ASX: PAC)

    Pacific Current is a business that takes investment stakes in global fund managers to help them grow with capital and expertise.

    Over the last 12 months, Pacific Current has paid dividends totalling $0.35 per share. That translates to a grossed-up dividend yield of around 9.1%.

    The ASX share has a portfolio of around 15 names. Some of its investments include Aether Investment Partners, Astarte Capital Partners, Carlisle Management, GQG Partners, Proterra Investment Partners and Victory Park Capital.

    In the quarter ending 31 March 2021, Pacific saw FUM controlled by boutique asset managers increase by 8.9%. Including the new investment in Astarte Capital Partners, total FUM increased 9.3%.

    During the latest quarter, Pacific saw “strong” inflows across the portfolio including GQG, ROC, Carlisle, Proterra and Victory Park.

    The Pacific Current CEO, Paul Greenwood, said:

    While GQG continued to post large FUM gains, we were again encouraged by the breadth of growth across the portfolio. As we emerge from the pandemic it appears that many of our portfolio companies are very well positioned to grow, and as a result we expect continued capital raising success in 2021 and 2022.

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  • This tech ETF has returned 30% for ASX investors in the past year

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    The BetaShares Nasdaq 100 ETF (ASX: NDQ) has had a pretty decent week. Since 19 May, this exchange-traded fund (ETF) has put on a healthy 4.5%.

    And since the start of March, unitholders have enjoyed close to 20% in returns. But those robust numbers continue as we zoom out on the time scale.

    Over the past year, this Nasdaq 100 ETF has returned 30.8% to its investors. It has also managed to average 27.52% per annum over the past 3 years, and 26.35% per annum over the last 5. Since its inception in May 2015, investors have enjoyed a 21.57% return each year. These are the kinds of numbers to get anyone excited.

    So what does this ETF cover? And how does it manage these impressive returns?

    NDQ is an index fund at its core. It tracks the NASDAQ-100 (INDEXNASDAQ: NDX) index. This index is based on the US Nasdaq exchange, consisting of the top 100 companies by market capitalisation that list on the Nasdaq.

    Unlike Australia, the US share market consists of multiple exchanges. The two largest of these are the Nasdaq and the New York Stock Exchange (NYSE).

    What is the Nasdaq 100? 

    The Nasdaq has something of a reputation as the ‘cooler younger sibling’ of the NYSE. Whilst some of the US’s oldest companies, think names like Ford Motor Company (NYSE: F) and General Electric Company (NYSE: GE), list on the NYSE, many of the US’s younger, cooler companies instead flock to the Nasdaq.

    This gives this index a very heavy bias in favour of tech companies.

    Indeed, its largest holdings are none other than the mighty FAANG stocks. These consist of Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). You can throw Microsoft Corporation (NASDAQ: MSFT) in too. 

    Some other names on the Nasdaq 100 that don’t have the same kind of world-dominating name recognition include NVIDIA Corporation (NASDAQ: NVDA), PayPal Holdings Inc (NASDAQ: PYPL), Tesla Inc (NASDAQ: TSLA) and Adobe Inc (NASDAQ: ADBE). Well, almost not as much. 

    The NDQ ETF holds all of these companies and 90 others. 

    So where do these ASX-beating returns come from? Well, the performances of NDQ’s holdings. All of the FAANG stocks have had a spectacular few years. In the past 12 months alone, Apple shares are up 60.5%, Amazon is up 34% and Alphabet (C Class) has gained 70%. 

    Now, some might say that this stellar run can’t continue forever for US tech shares. But many of these companies continue to put out impressive earnings growth rates, despite their size.

    If any ASX investor feels their portfolio lacks exposure to US tech shares, this ETF could be an easy ASX solution. The NDQ ETF charges an annual management fee of 0.48%.

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  • Dug Technology (ASX:DUG) share price gains on carbon-free project

    A graphic featuring renewable energy sources such as wind, solar and battery power, indicating positive share prices growth in the ASX renewable sector

    Shares in Dug Technology Ltd (ASX: DUG) have lifted following news the company plans to build a high-performance computing (HPC) data campus powered entirely by renewable energy.

    The Dug Technology share price lifted after this afternoon’s announcement and was swapping hands for $1.08, 1.4% higher at the close of trade.

    Let’s take a closer look at the news driving the Dug Technology share price.

    HPC data centre powered by renewable energy

    Dug Technology announced that its carbon-free HPC data campus – to be located in Geraldton, Western Australia – will be a world-first and one of the largest HPC data centres globally.

    The campus will use Dug Technology’s immersion-cooling technology. The company said this could see its HPC data centre become one of the most energy-efficient on earth, utilised by clients working towards carbon-reduction and environmental, social, and governance (ESG) goals.

    Renewable power for the campus will come from solar and wind. Dug Technology is also looking into whether it can place a hydrogen battery system on site.

    The company plans to lease plans 45 hectares of land near Geraldton to build the project.

    Dug Technology said it chose Geraldton as it’s one of the world’s best up and coming renewable energy regions.

    High-speed fibre internet is available at the proposed site which means connection speeds from the mid-west township will be as good as those of a CBD location.

    The company stated its project has the full support of the Yamatji Nation Board and the project includes opportunities and training for the Yamatji people.

    The land Dug Technology plans to lease will soon be passed to the Yamatji Nation Trust as part of the Yamatji Nation Indigenous Land Use Agreement.

    The company’s board has approved a $5 million budget to build the HPC’s data hall. The funds will be taken from the company’s existing cash reserves.

    Construction of the HPC data campus is set to begin in the third quarter of this year, subject to approvals.

    Commentary from management

    Dug Technology’s CEO and founder Matt Lamont commented on the proposal, saying:

    As demand for HPC continues to grow exponentially around the world, we must invest in world-leading, carbon-free, cost-effective HPC solutions for our clients.

    We developed our award-winning DUG Cool immersion system to reduce the energy footprint of our data centres. Having the ability to utilise this technology at scale would solidify the Geraldton campus as the world standard in environmentally-friendly HPC.

    Dug Technology share price snapshot

    The Dug Technology share price has been floundering on the ASX lately.

    Currently, the company’s share price is down 10.7% year to date and has fallen 25.5% since this time last year.

    The company has a market capitalisation of around $106 million, with approximately 99 million shares outstanding.

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  • 3 ASX shares growing at a rapid rate

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    Are you interested in growth shares? Three to look closely at are listed below.

    All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

    Megaport Ltd (ASX: MP1)

    The first ASX growth share to look at is Megaport. It is an elasticity connectivity and network services company. The company utilises software defined networking (SDN) to allow customers to rapidly connect their network to other services across the Megaport Network. This means that services can be directly controlled by customers via mobile devices, their computer, or its open API.

    Demand has been strong, leading to Megaport growing at a rapid rate over the last few years. The good news is that this is continuing in FY 2021 thanks to the ongoing shift to the cloud. Last month it released its third quarter update and revealed an 8% quarter on quarter increase in monthly recurring revenue (MRR) to $6.8 million.

    Pushpay Holdings Group Ltd (ASX: PPH)

    Another growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Pushpay has been growing at a rapid rate in recent years thanks to the accelerating digitisation of the church, the shift to a cashless society, and the overall quality of its offering.

    This strong form continued in FY 2021, with Pushpay recently reporting another impressive full year result. For the 12 months ended 31 March, Pushpay delivered a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million. This was well-ahead of its original guidance, which was upgraded three times during the year. Positively, management is forecasting further growth in FY 2022 and is planning to expand into a new market.

    Temple & Webster Group Ltd (ASX: TPW)

    A third ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer. Temple & Webster has been growing at a rapid rate in recent years but particularly during the pandemic. This was driven by the accelerating shift to online shopping.

    The good news is that online furniture shopping is still in its infancy in comparison to both other areas of the retail market and other Western markets. This bodes well for the future, especially given Temple & Webster’s leadership position. Management is now investing heavily to take advantage of the shift and cement its position as the market leader.

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  • EML Payments (ASX:EML) share price on watch after responding to ASX query

    shocked man looking at laptop with declining arrows in the background showing a falling share price

    The EML Payments Ltd (ASX: EML) share price might be one to watch on Wednesday.

    This follows the release of an announcement just before the market close today.

    What did EML release?

    This afternoon EML released a response to a series of questions from the ASX Ltd (ASX: ASX) relating to a recent announcement regarding its European operations.

    In case you missed it, last week the company revealed that the Central Bank of Ireland (CBI) has concerns over the company’s PFS Card Services (Ireland) (PCSIL) business in relation to Anti-Money Laundering/Counter Terrorism Financing compliance.

    Given that 27% of its total revenue is derived from this business and the CBI could take away its licence, the market panicked and the EML share price crashed significantly lower.

    What did it say today?

    The Australian share market regulator quizzed the company on the timing of the announcements and whether it had known about the concerns earlier.

    The response reveals that the Irish business received the letter from the CBI late in the evening on Thursday 13 May (Australian time) and then senior managers at EML met Friday morning to discuss the matter.

    However, unfortunately for any investors that bought shares on Friday 14 May, urgent legal advice wasn’t obtained until Friday evening (Australia time), meaning a trading halt wasn’t requested until Monday morning after the EML board met.

    EML explained:

    “PCSIL received the CBI’s letter at 11:12pm on Thursday evening, 13 May 2021 (Australian time). The letter was preceded by a call with the CBI at 10:00pm on Thursday evening, 13 May 2021 (Australian time). The call was attended by senior managers of PCSIL, including an executive director.”

    “EML’s Group Chief Risk Officer also attended the 10:00pm call and was sent a copy of the letter at 11:12pm. PCSIL’s executive director provided a copy of the letter to EML at 12:37am on Friday morning, 14 May 2021 (Australian time). The letter was provided as an attachment to a calendar invitation for a meeting to be held at 6:30am on Friday morning, 14 May 2021 (Australian time). The calendar invitation was sent to senior managers of EML, including EML’s Managing Director and Group CEO.”

    “The Board of EML was informed of, and provided with a copy of, the CBI’s letter on Saturday, 15 May 2021. The Board met on the morning of Monday, 17 May 2021, and the company requested a trading halt prior to the market opening while it considered the Information and prepared an ASX announcement.

    EML released its ASX announcement, lifting the trading halt, on the morning of Wednesday 19 May 2021 (Australian time), before trading on the ASX commenced.”

    No update has been provided in relation to its dealings with the central bank. Shareholders will have an anxious wait for that one.

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  • The Commonwealth Bank (ASX:CBA) bets big on Little Birdie

    ecommerce asx shares represented by woman shopping online

    The Commonwealth Bank of Australia (ASX: CBA) share price has inched closer to that elusive $100 a share milestone today. Fittingly, Australia’s largest bank is ‘flying’ to new heights after it placed a big bet on Melbourne start-up, Little Birdie.

    At the time of writing, the Commonwealth Bank share price is 0.88% higher to $99.63 a share.

    Setting records before even taking flight

    Little Birdie is the brainchild of successful e-commerce entrepreneurs, Gabby and Hezi Leibovich. After selling Catch Group to Wesfarmers (ASX: WES) for $200 million in 2019, the brothers got working on their next venture.

    The little company with big plans sees itself being the homepage for online shoppers. With over 70 million products to flick through, compare, and also share. But before Little Birdie has even launched, it’s setting new records.

    Significantly, the ASX’s biggest bank, Commonwealth Bank pledged $30 million into the e-commerce company’s latest funding round. That makes it the largest funding round for an Australian start-up before launching a product. As a result, Little Birdie is now valued at $130 million – with CBA taking a 23% stake.

    What’s in it for ASX’s Commonwealth Bank?

    The biggest Aussie bank isn’t just investing in Little Birdie, it’s bringing it on board. That’s right, in the not-too-distant future, 11 million CBA customers will open their mobile banking app and have Little Birdie right there – ready to go.

    Group Executive of retail banking, Angus Sullivan said:

    Leveraging CommBank’s Customer Engagement Engine, customers will have access to data-driven personalised offers that are exclusive to CommBank customers and based on their spending habits via the CommBank app.

    It will be interesting to see whether CommBank’s own buy now pay later (BNPL) installment offering will be directly embedded into Little Birdie on launch. Or, whether Klarna will make an appearance, considering the bank’s investment in the Swedish BNPL competitor.

    An official launch of Little Birdie is slated for mid-June. A positive reception on launch might just be the final nudge for the Commonwealth Bank share price to break $100.

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  • A cracking year so far for Super, and where to for Bitcoin? Motley Fool CIO Scott Phillips on Sunrise

    Scott Phillips on Weekend Sunrise 23 May 2021

    Motley Fool Australia Chief Investment Officer Scott Phillips joined Weekend Sunrise on Sunday to discuss the remarkable returns for Superannuation so far this financial year, and to check in on the rollercoaster ride that is Bitcoin.

     

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  • Here are the US shares ASX investors were buying last week

    A businesman's hands surround a circular graphic with a United States flag and dollar signs, indicating buying and selling US shares

    Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s CommSec share brokerage and trading platform tells us the most popular international shares (which are usually US shares) that its Australian users were trading the previous week.

    CommSec is one of the most popular ASX brokers in Australia. Because of this, its data provides an interesting insight into the foreign shares that ASX investors have been chasing (or running away from) of late.

    My Fool colleague James Mickleboro has already covered some of the ASX’s most popular shares today. So here are the top 10 international shares that CommSec users were buying and selling last week. This week’s data covers 17-21 May.

    Tesla, GameStop and Coinbase dominate most popular ASX US shares

    1. Tesla Inc (NASDAQ: TSLA) – representing 7.8% of total trades with a 79%/21% buy-to-sell ratio.
    2. GameStop Corp. (NYSE: GME) – representing 3% of total trades with an 83%/17% buy-to-sell ratio.
    3. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.3% of total trades with an 83%/17% buy-to-sell ratio.
    4. Apple Inc (NASDAQ: AAPL) – representing 2.3% of total trades with a 71%/29% buy-to-sell ratio.
    5. Coinbase Global Inc (NASDAQ: COIN) – representing 1.6% of total trades with a 74%/26% buy-to-sell ratio.
    6. Microsoft Corporation (NASDAQ: MSFT)
    7. Palantir Technologies Inc (NYSE: PLTR) 
    8. Nio Inc – ADR (NYSE: NIO) 
    9. Alibaba Group Holding Ltd (NYSE: BABA)
    10. Amazon.com Inc. (NASDAQ: AMZN)

    What can we learn from these trades?

    Some interesting data to look through this week, as always. Well, first things first, Tesla and GameStop once again get the gold and silver medals for the US shares that AS investors can’t seem to leave alone. Tesla’s buy-to-sell ratio was remarkably similar to our last report.

    However, ASX investors seem to be cooling on GameStop. Last week, we were looking at a 94%/6% buy-to-sell ratio for GME shares. This week’s 83%/17% ratio indicates some investors are cashing out. That was despite the GameStop share price (uncharacteristically) not doing too much moving.

    A surprising promotion though went to cinema chain AMC holdings. AMC shares were our sixth most popular share in last week’s report, but AMC cracks the top 3 this week. That can probably be explained by the 13% share price slide the company made over the analysed period. Clearly, the ASX has more than a few bargain hunters. 

    Coinbase also makes something of a comeback this week. In last week’s report, Coinbase had slid to a position outside the top 10. But it came roaring back at No. 5 this week. Again, we can probably explain this by looking at the Coinbase share price over the past week or two. Between 17-21 May, this cryptocurrency broker fell around 10%. It has also fallen more than 30% since its April IPO. 

    The US blue-chip tech stocks in Apple and Microsoft remain popular as ever. As do the Chinese companies Alibaba and Nio.

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  • Why the BARD1 (ASX:BD1) share price plummeted 9% today

    A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

    The BARD1 Life Sciences Ltd (ASX: BD1) share price had a woeful day on the ASX today. This comes despite the company releasing positive results for its novel pan-cancer probe, SubB2M-based immunohistochemistry (IHC) test.

    At market close, BARD1 shares finished the day at $2.19, down 9.5%.

    SubB2M is an engineered protein that binds to a unique sugar molecule called Neu5Gc. This protein is only present in human cancers. Additionally, it can detect the disease using liquid biopsies, immunoassays, circulating tumour cell assays, and PET imaging.

    What did BARD1 announce?

    Investors are selling BARD1 shares despite receiving promising results from a preliminary study demonstrating the feasibility of its SubB2M technology.

    In its announcement, BARD1 advised that SubB2M has successfully been used to demonstrate staining of cancer in specific tissue sections. The preliminary study compared cancer tissue from an invasive ductal breast cancer tumour biopsy against a non-cancer breast tissue biopsy.

    The study also found that the SubB2M IHC test could be performed on automated staining equipment. This equipment is used in pathology laboratories worldwide. BARD1 noted that once the staining has been optimised for breast cancer tissue. It will extend its studies to other cancer applications.

    The company noted that its SubB2M-based IHC applications represent a potential fast-to-market product opportunity.

    BARD1 CSO, Dr Peter French welcomed the results, saying:

    Whilst this data is from a single patient sample, and the assay conditions have not been optimised, we are pleased that we were able to utilise SubB2M to achieve a positive staining outcome in breast cancer FFPE sections. This is the first time SubB2M has been used in a histopathology application, and it demonstrated both initial feasibility in an IHC application for breast cancer and compatibility with an automated staining instrument.

    BARD1 CEO, Dr Leearne Hinch added:

    This initial feasibility data indicates that our SubB2M technology may be expanded to IHC applications for tissue-based cancer diagnosis. This represents a potential fast- to-market product opportunity for BARD1’s expanding cancer diagnostic pipeline. The global immunohistochemical market was valued at US$1.8 billion in 2019 and SubB2M-based IHCs could be developed for cancers such as melanoma where it can be difficult to distinguish malignant from benign tissues.

    About the BARD1 share price

    In the past 12 months, BARD1 shares have accelerated to more than 180%. However, year-to-date performance has further jumped to post a gain above 220%.

    Based on valuation metrics, BARD1 presides a market capitalisation of roughly $175 million, with approximately 80 million shares outstanding.

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  • Why the Anteris (ASX:AVR) share price backtracked 6% today

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    The Anteris Technologies Ltd (ASX: AVR) share price took a hit today. This follows the company’s latest announcement of a proposed capital raise.

    The company’s shares closed today’s trade at $7.45, down 6.88%.

    Anteris initiates capital raising

    Anteris, a healthcare company specialising in the design and production of heart valve products, saw its share price fall after it announced a capital raise that will dilute existing shareholder value.

    According to its release, Anteris advised it is placing 310,386 new ordinary shares mainly to its top 10 institutional shareholders.

    The newly created shares will be offered at an issue price of $7.50 apiece, raising a total of $2.3 million.

    The placement price represents a 9% discount to the 5-day volume weighted average price.

    The shares will be issued using the company’s existing placement capacity. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.

    In addition, participating investors will receive 1 unlisted option for every 2 shares, exercisable at $11.50 a pop.

    The options will have a 2-year expiry period, and are subject to shareholder approval if they exceed listing rule 7.1.

    Should shareholders vote against the issue of the options, the company will instead hand out a cash payment equivalent to $1.25 per option.

    The vote will be held at Anteris’ Annual General Meeting (AGM) in July.

    The managers of the placement, Evolution Capital Advisors, will receive $81,739 for facilitating the capital raise.

    Furthermore, there will be 50,000 options with the same terms available, pending shareholder approval. Again, should shareholders vote against, Anteris will pay a cash payment of $62,500 ($1.25 per option) to Evolution Capital Advisors.

    About the Anteris share price

    The Anteris share price is up just over 5% since this time last year.

    Anteris shares reached a 52-week high of $13.75 in March, before treading lower due to profit taking and a broader market slump.

    Based on today’s price, Anteris has a market capitalisation of roughly $49 million, with only 6.6 million shares on issue.

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