The Kogan.com Ltd (ASX: KGN) share price should probably be on your watchlist at the current share price.

Why? There are a few key reasons.

Kogna.com is one of Australia’s leading e-commerce businesses and it could be a very attractive investment today.

Not only does Kogan.com have an impressive core online retail offering for consumers in Australia. But it has an a number of other segments including its membership fees, extra services like insurance and mobile plans, its newly-acquired New Zealand business called Mighty Ape and the online furniture business Matt Blatt.

These are some important factors why the Kogan.com share price could be a good one to consider:

Valuation

The current price/earnings ratio is quite a bit lower than plenty of other growth shares. Some of those aren’t even making a profit yet.  

At the current Kogan.com share price it’s valued at 25x FY21’s estimated earnings according to Commsec.

This puts the business at a low PEG ratio considering in the half-year result for FY21 it generated 135.1% growth of earnings per share (EPS). The growth may not be as strong in the coming periods, but it’s a good valuation for its long-term growth potential.

Rapid profit growth

One period of growth is one thing, but Kogan.com has been generating good profit growth for many years. It’s strong profit growth that can lead to outperformance of the market over time.

Kogan.com delivered net profit after tax (NPAT) growth of 55.9% in FY20. In FY19, net profit increased 21.9%.

The business has been generating double digit growth for quite a while. These odd COVID-19 times has seen Kogan.com’s growth increase. More people are shopping online more often. This is really helping Kogan.com’s sales and margins.

Economies of scale

As an e-commerce platform, the business is getting more profitable as more volume is processed.

That means that the profit is growing at a faster rate than sales increase. This can be seen in every result Kogan.com has reported in the last few years.

Its gross profit has increased in each of the last few half-year results. In HY18 the gross margin was 19.4%, in HY19 it increased to 19.5%, in HY20 that rose to 22.7% and in HY21 it improved significantly to 27.3%.

The latest result showed lots of margin improvement. FY21 half-year gross sales rose 97.4% to $638.2 million, gross profit went up 126.2% to $112.9 million, ‘adjusted’ earnings before interest, tax, depreciation and amortisation (EBITDA) rose 184.4% to $51.7 million and ‘adjusted’ net profit after tax (NPAT) grew 250.2% to $36.5 million.

Kogan.com says that it continues to deliver significant projects to grow its products and services offering, while heavily investing in its brands.

Rewarding shareholders

Many ASX tech shares don’t have a sizeable dividend yield. However, for the HY21 result, the board decided to pay a dividend of $0.16 per share – which is a payout ratio of 72.7%. That leaves plenty of profit left for re-investment for more growth.

Kogan.com has a FY21 expected grossed-up dividend yield of 4% at the current Kogan.com share price according to Commsec.

More reading

• 3 top ASX shares to buy this week
• This could be boosting the Kogan (ASX:KGN) share price today
• 2 outstanding ASX tech shares to buy
• Got money to invest for income? Here are 2 ASX dividend shares
• Are you buying the companies of the past, or the future?

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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Ask A Fund Manager

In part 1 of our interview, SG Hiscock High Conviction Fund portfolio manager Hamish Tadgell told us the bank and the telco that his fund has bet on for a big year. Now in part 2, he reveals which 2 ASX stocks are set for a massive post-pandemic recovery.

Buying and selling 

MF: Which stocks have you sold off in the past couple of months? The markets have been volatile since we last spoke in January. 

HT: Yeah, they have. One position we’ve sold is Amcor CDI (ASX: AMC). We still think Amcor is a good quality business, but it’s more a function that we see better opportunities in other areas at the moment. 

Amcor was certainly a COVID beneficiary from pantry restocking, and it’s a key supplier into packaging of foodstuffs and staples. We also just think that the outlook [is] a little bit tougher just through plastic recycling and the like, and the focus on supply chain and recycling. 

At the end of the day, Amcor is making some good initiatives in terms of moving to recycling – but it is a plastics manufacturer, and we think that that will be more of a headwind than perhaps what the company is suggesting over the next number of years.

MF: What have you bought over the past couple of months?

HT: [Selling] Amcor was a bit of a switch for us into Qube Holdings Ltd (ASX: QUB). Qube Logistics is the owner of Patrick, which is the largest port operator in Australia. It also has significant exposure in the grain-handling space. 

We think that the business has clearly been COVID-impacted – at the end of the day, we’re an island state, we’ve had fewer imports coming in, fewer exports going out. As a consequence, they’ve seen container volumes slow, and that’s impacted their business. But as the economy opens up and supply chains recover and trade recovers, and as imports start to come back into Australia, we think they will be a material beneficiary.

We also think this [year] would see very, very strong agricultural conditions and crop season that we’ve seen through the winter crop recently. Qube will be a beneficiary on that side as well. 

The third point really is that Qube, for the last 5+ years, has been developing in Moorebank in New South Wales, an inland logistics hub. They’ve been developing a warehouse and intermodal train facility. Just last month, they announced that they’re going to sell down that to Logos, which is an Asian logistics player. 

So that’s going to release a fair bit of capital and enable them to pay some debt, but will also, I think, return capital to shareholders. They focus the business back more on not being a property and logistics player but being more of a pure logistics player, and we think that we should see a re-rating on the back of that.

Why waste management is underrated

MF: What’s your most underrated stock at the moment?

HT: Look, until probably a week ago, I probably would have said Cleanaway Waste Management Ltd (ASX: CWY). Cleanaway is a stock that we have known for quite a while. 

We actually think that it’s a COVID recovery story. Clearly, it was impacted by just lower volumes, particularly in the commercial and industrial space. Businesses doing less meant less waste to be collected. But as the economy recovers, we think that they should see volumes pick up. 

But we also really like Cleanaway from the perspective that it’s leveraged to… the circular economy. Taking [waste] from collection right through to recycling – they’re investing at the moment in a number of energy to waste facilities and the like. With some of them [it’s] going to take a few years to roll out. But we think that the thematic is very positive and should help drive the stock.

The stock has re-rated a little bit in the last few weeks as a result of talk around potentially buying some of Suez‘s assets. Suez is a French company that’s up for sale and being bought by Veolia Environnement SA … It will be forced to sell those assets in New South Wales, and just this week, Cleanaway’s come in and announced a deal around that. 

The other thing which has probably been holding the stock back a little bit is the CEO transition. It was announced earlier this year that the CEO was going to resign or retire, and the company’s in the process of looking for another CEO, and I guess that always creates some uncertainty.

We think that the strategy and the assets won’t really change greatly. CEO is important, but we see it as more of an opportunity than anything else at the moment.

More reading

• ASX 200 flat: Zip rockets, Cleanaway higher, Regis-IGO announce Tropicana deal
• Cleanaway (ASX:CWY) share price on watch after Suez acquisition collapses
• 5 things to watch on the ASX 200 on Thursday
• Acquisitions and spin-offs put these 3 ASX shares on brokers’ “buy” list
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor 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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With the Australian share market on a very positive run, it will come as no surprise to learn that a number of ASX shares have been charging higher.

Three ASX shares that have just reached new highs are listed below. Here’s why they are on form:

Dubber Corp Ltd (ASX: DUB)

The Dubber share price hit a record high of $2.23 on Thursday. Investors have been scrambling to buy the the call recording service provider’s shares this week after it announced an agreement with video conferencing giant Zoom for its Unified Call Recording product. Dubber revealed that the deal with Zoom provides businesses of all sizes with the ability to record calls for all users. After which, once the recordings are ingested by Dubber, businesses can enrich the content with AI delivering transcriptions, sentiment data, real-time search and more. Also boosting its shares this year were a similar agreement with AT&T and a strong half year update in February.

Westpac Banking Corp (ASX: WBC)

The Westpac share price climbed to a 52-week high of $25.52 yesterday. The catalyst for this has been the improving outlook for the banking sector thanks to Australia’s strong economic recovery from the pandemic and a booming housing market. In addition to this, a strong first quarter update earlier this year got investors excited. As did APRA’s decision to remove dividend restrictions. This bodes well for income investors in the near term.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price reached a 52-week high of $42.16 on Thursday. Investors have been buying the retail giant’s shares this year following a very strong half year update and its positive outlook. The latter is being underpinned by favourable shifts in consumer spending which are benefiting the majority of its businesses. Also giving its shares a lift was a positive broker note this month, suggesting its shares could go on to hit record highs.

More reading

• What Coinbase’s float means for the Westpac (ASX:WBC) share price
• Why NAB (ASX:NAB) shares could take off: fundie
• Is it time to jump on the Westpac (ASX:WBC) share price?
• The Coinbase (NASDAQ:COIN) IPO price has been announced
• Why BrainChip, Dubber, Galaxy, & Resolute shares are charging higher

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia owns shares of Woolworths 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla Inc (NASDAQ: TSLA) was up against some significant headwinds last year. Not only did the automaker face tough year-ago comparisons when soaring Model 3 deliveries led to 50% growth in vehicle deliveries, but it had to pause manufacturing in the spring of 2020 as it dealt with lockdowns related to COVID-19. Yet the electric vehicle maker still managed to grow vehicle deliveries 36% for the year.

Though Tesla’s 2020 performance was impressive, it might look modest in comparison to the automaker’s 2021 sales. The current consensus estimate for Tesla’s vehicle deliveries this year is 850,000 units, up from about 500,000 in 2020. Indeed, one of the most recent analyst forecasts calls for 929,000 deliveries this year, which would mark growth of more than 85% year over year. 

Why deliveries should skyrocket

It’s not too surprising to see analysts so bullish on Tesla’s deliveries in 2021. The automaker has been making remarkable progress on expanding its production capacity. Going into 2020, Tesla had installed tooling at its factories for annualized production capacity of 640,000 units. By the end of the year, Tesla’s installed annualized production capacity had reached 1.05 million electric vehicles.

Yet even these figures don’t fully capture Tesla’s manufacturing momentum. The company also had two production lines under construction at the end of the year — a Model Y production line at its new factory in Berlin, Germany, and another one at its new factory in Texas. Tesla said in its fourth-quarter update that it expects to begin vehicle production at these new factories this year.

What to watch

Fortunately, Tesla investors will soon get better insight into whether analysts’ optimistic outlook for the automaker’s deliveries is realistic. The company will release its first-quarter financial results on April 26. Tesla’s updates usually provide insight into recent delivery trends, demand, and more.

We already know Tesla kicked off the year with strong first-quarter deliveries, as it announced its quarterly deliveries ahead of its earnings report. Tesla delivered approximately 185,000 vehicles, up 109% year over year. However, other information in the earnings report should still be helpful to investors when assessing the company’s growth potential. First and foremost, investors should look for any commentary from management on demand for its electric vehicles. Obviously, Tesla needs more than strong growth in production; it needs similarly high levels of demand, too.

In addition, investors can look to see if Tesla provides an updated view for its deliveries this year. So far, the automaker has only said that it expects total 2021 deliveries to increase more than 50% compared to 2020 deliveries.

Tesla will report its first-quarter results after market close on Monday, April 26.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Top fundie picks this ASX 200 resource share for the EV revolution
• Why Tesla stock soared higher on Tuesday
• The stock that I’d hold for the next 5 years: fundie
• Tesla and Palantir were some of the most popular US shares last week
• Tesla stock: headed to $1,071?

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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A veteran stock picker is feeling anxious about how the market is behaving, fearing massive losses for retail investors.

Forager Funds chief investment officer Steve Johnson said this week that share markets had “a crazy first quarter”.

“You’re not seeing dramatic moves in the overall index levels, but some of last year’s really big winners have been hammered so far this year.”

He told the Forager video that currently, it wasn’t uncommon to see a share price rocket up 100% then get hammered down 50% within a few weeks.

“This sort of market activity, it does worry me and it makes me nervous.”

An example of the craziness

Forager analyst Chloe Stokes named retailer Stitch Fix Inc (NASDAQ: SFIX) as an example of the vomit-inducing ride some stocks have endured.

“During COVID, the share price was down as low as US$11. And then back in December, it was trading at US$35 before they released earnings for their first quarter.”

The quarterly results were “pretty impressive”, according to Stokes.

“They had good revenue growth and good guidance and a lot of growth in new customers. The stock rose very significantly on the day and continued rising over the next 2 months. It got as high as US$113 at the end of January.”

But from that peak, the stock started tumbling, apparently for no significant reason.

“And there was another significant dip when they released their second quarter earnings, where revenue growth wasn’t quite what the market was expecting, and they lowered their guidance for 2021.”

Stitch Fix shares now trade for US$46.86.

“The stock is now less than half of what it was… We were kind of loosely interested in the stock back before the crazy price rise. And it’s getting to the levels where we might start looking at it again.”

Rollercoaster rides make Johnson sick

According to Johnson, investors should be worried because “there’s a lot of stuff going on under the surface” currently in the market.

“It is not normal for large numbers of stocks to be doubling and then halving,” he said.

“I think you’re seeing a lot of leverage, like these [collapsed] hedge funds that we’ve seen. I think a lot of retail leverage as well, which is a fairly new phenomenon of people being able to buy options and CFDs and things at a retail level.”

Social trading, which really came into public consciousness during the GameStop Corp (NYSW: GME) blow-up in January, is also contributing to the chaos.

“Anyone that’s seen the Wolf of Wall Street knows about the ‘pump and dump’, where you create this excitement about a stock and then sell your stock into it… These new social media platforms like Twitter Inc (NYSE: TWTR) and Reddit have created the ability to do that on a scale that we haven’t seen before,” Johnson said.

“It’s got me quite nervous that these are not isolated incidents. They’re all related to the same thing.”

Buying opportunities

Stokes took the alternative view that the volatility of some stocks has presented investors with golden buying opportunities.

“From my perspective, it’s been great. It’s meant we could buy Farfetch Ltd (NYSE: FTCH) back below US$20 in June last year, we sold it above US$60, and now we’re getting a chance to buy it back again at significantly lower prices.”

Stokes’ team also doubled its money in a few days in January when its Bed Bath & Beyond Inc (NASDAQ: BBBY) holding got indirectly caught up in the GameStop furore.

More reading

• GameStop looks to become debt-free with early debt retirement plan
• Tesla and Palantir were some of the most popular US shares last week
• Here’s why Microsoft just spent $19.7 billion to acquire nuance communications
• Better buy: Amazon vs. GameStop
• GameStop names activist investor Ryan Cohen as chairman of the board

Tony Yoo 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 Twitter. 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 Bank of Queensland Limited (ASX: BOQ) share price will be one to watch on Friday.

This follows a positive reaction to its half year results by one leading broker this morning.

How did Bank of Queensland perform in the first half?

For the first half of FY 2021, Bank of Queensland reported a 9% increase in cash earnings after tax to $165 million.

Management advised that this was driven by balance sheet growth, disciplined expense management, lower loan impairment expense, and improved net interest margin (NIM).

In respect to the latter, Bank of Queensland finished the period with a NIM of 1.95%. This was up 3 basis points and was driven largely by lower funding costs from reduced deposit rates and lower wholesale funding costs.

This strong form allowed the bank to declare a 17 cents per share interim dividend. This was up 11 cents per share from the prior corresponding period.

What did brokers think?

One broker that was pleased with the result was Goldman Sachs. In response to the release, this morning the broker retained its buy rating and lifted its price target to $9.83.

Based on the latest Bank of Queensland share price, this price target implies potential upside of 11.5% over the next 12 months.

And with Goldman Sachs forecasting a 4% fully franked dividend yield in FY 2021, this potential return stretches to ~16%.

Why is the Bank of Queensland share price in the buy zone?

Goldman was pleased with the result and has upgraded its estimates to reflect a number of trends.

It explained: “We upgrade our FY21/22E/FY23E cash EPS by 4.7%/2.2%/-2.9%, driven by i) a better lending momentum, ii) lower BDDs; partially offset by iii) weaker non interest income; and iv) slightly higher cost growth in the outer years.”

The broker also believes that management’s guidance for the full year is conservative and expects the bank to outperform it.

Goldman said: “Our analysis suggests that BOQ’s 4% FY21E revenue guidance implies average interest earning assets fall 1% hoh in 2H21E. Given momentum in the business is accelerating, we think this is too conservative and therefore forecast 2H21E sequential average interest earning asset growth of c. 2.5%, which drives FY21E revenue growth of 6%. We also see potential upside risk to BOQ’s ‘broadly flat’ 2H21E sequential NIM guidance. Coupling this with our TP of A$9.83 offering 16% TSR over the next 12 months, we reiterate our Buy recommendation.”

This could make it well worth consider Bank of Queensland shares at the current level.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Zip sinks, BOQ reports
• ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes
• Bank of Queensland (ASX:BOQ) share price on watch after solid half year update
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro 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 an income investor in search of dividend shares, then look no further.

Listed below are two ASX dividend shares that are highly rated. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

This company appears well-positioned to grow its dividend at a consistently solid rate long into the future. This is thanks to its focus on high quality social infrastructure properties.

These properties, such as childcare centres and government properties, have specialist use, limited competition, and low substitution risk. They also come with ultra long leases and fixed rent reviews.

For example, at the end of the first half, the Charter Hall Social Infrastructure REIT had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years.

In FY 2021, the company intends to pay a distribution of 15.7 cents per unit to shareholders. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.9% yield.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.45 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider buying is Super Retail. It is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

It has been a very positive performer during the pandemic. In February, Super Retail reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Management advised that this was driven by like for likes sales growth, strong online sales, and margin expansion.

Goldman Sachs is also a fan of Super Retail and expects it to have a strong second half. So much so, the broker believes the company will be in a position to pay shareholders a special dividend with its full year results.

Its analysts are forecasting an 81 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price, this represents a 6.8% yield.

Goldman currently has a buy rating and $15.00 price target on its shares.

More reading

• 2 ASX dividend shares to buy for income today
• 2 buy-rated ASX dividend shares with generous yields
• 2 high yield ASX dividend shares rated as buys
• 2 ASX dividend shares rated as strong buys by brokers
• 3 ASX dividend shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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At the small end of the market, there are a number of ASX shares with the potential to grow strongly in the future.

Two that should be on your watchlists are listed below. Here’s what you need to know about them:

MNF Group Ltd (ASX: MNF)

The first small cap ASX share to watch is MNF Group. It specialises in Voice over Internet Protocol (VoIP) technology, which converts analogue audio into digital data that can be transmitted over the internet. This technology is used to support services like teleconferencing, online business meetings, and digital data transfers.

MNF looks well-placed for growth over the long term thanks to a number of favourable tailwinds. These include the NBN rollout and the work from home initiative.

In addition to this, when MNF released its half year results in February, management revealed plans to expand into the Asian market. At that point, it was on the cusp of entering Singapore and was looking at a further six markets in the region.

If these expansions are a success, then they could be a big boost to its recurring revenues, which are growing fast. For example, at the end of December, recurring revenues had increased 15% to $55.7 million.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.30 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to watch is Volpara. It is the healthcare technology company behind the VolparaEnterprise software solution. This is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services.

This software has resonated extremely well with radiologists, leading to consistent market share gains in the US breast screening market over the last few years. In fact, at the end of the third quarter of FY 2021, Volpara reported that its software was used in over 27% of screenings for women in the United States.

The company also has a number of complementary solutions that work alongside VolparaEnterprise. These add-ons are expected to drive a significant increase in average revenue per user (ARPU) in the future.

Morgans is positive on Volpara. It currently as an add rating and $1.94 price target on its shares.

More reading

• 4 exciting small cap ASX shares to watch
• 2 rapidly growing small cap ASX shares to buy
• 3 ASX shares to buy in April 2021
• 2 fast-growing small cap ASX shares to watch
• 2 stellar ASX tech shares to buy in April

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 VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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 compelling ASX dividend shares that have bene rated as buys by brokers.

Brokers are constantly on the lookout for opportunities and there are a few dividend shares with high yields that have been picked as buys.

These two businesses are two of the most-liked ASX dividend shares right now:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure, which owns the Dalrymple Bay Terminal, provides its customers with safe and efficient port infrastructure and services. It owns the world’s largest metallurgical coal export facility and it serves as a global gateway from the Bowen Basin and it’s an important link for the global steelmaking supply chain.

It’s rated as a buy by at least three brokers, including Morgans. The broker’s price target on Dalrymple Bay Infrastructure is $2.57.

Morgans expects the infrastructure business to pay a distribution of $0.18 per share in FY21. At the current Dalrymple Bay Infrastructure share price, it has a forward yield of 7.9%.

The broker thinks that the ASX dividend share’s earnings can grow as it raises its charges for customers.

Anthony Timbrell, managing director and CEO of Dalrymple Bay Infrastructure recently said:

As the world’s largest metallurgical coal export facility, DBI is ideally placed to leverage the strong outlook for global steelmaking as we are fully contracted on a 100% take-or-pay basis until June 2028. This also means we are not exposed to daily volume or commodity price volatility.

DBI forecast funds from operations (FFO), underpinned by cash flow stability and an investment grade balance sheet, should support a sustainable distribution going forward. The company remains on track to pay $45 million in distributions for the six months ended 30 June 2021.

Australian Finance Group Ltd (ASX: AFG)

Australian Finance Group is one of the largest mortgage broking businesses on the ASX.

It has been operating for 26 years, with around 3,000 brokers, more than 200 staff and it works with over 70 lenders.

The broker Macquarie Group Ltd (ASX: MQG) is one of several that rate this ASX dividend share as a buy. It has a price target on the company of $3.06.

Looking at the FY21 expectations, the Australian Finance Group share price is valued at 15x FY21’s estimated earnings with a grossed-up dividend yield of 6.4%.

The mortgage broker is seeing a lot of demand for its services as the housing market booms. Australian Finance Group’s net interest margin (NIM) is increasing too.

In the FY21 half-year result its residential trail book increased by 5% to $160 billion. Underlying cash profit increased by 41% to $24.88 million, whilst earnings per share (EPS) grew 9% to 9.2 cents.

Management said the business was heading into the second half of FY21 with a strong balance sheet, no debt, a solid pipeline of lodgements and good cashflow.

More reading

• Leading broker names its best ASX share ideas for April
• Brokers rate these 2 top ASX shares as buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) overcame a weak start to storm notably higher. The benchmark index rose 0.5% to 7,058.6 points.

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

ASX 200 expected to rise

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 13 points or 0.2% higher this morning. This follows a very strong night of trade on Wall Street, which saw the Dow Jones rise 0.9%, the S&P 500 climb 1.1%, and the Nasdaq storm 1.3% higher. Exceptional US economic data sent shares hurtling higher.

Oil prices rise

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 0.3% to US$63.36 a barrel and the Brent crude oil price is up 0.45% to US$66.89 a barrel. Oil prices hit one-month highs after demand forecasts were upgraded.

Gold price storms higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a strong day after the gold price stormed higher. According to CNBC, the spot gold price is up 1.6% to US$1,764.70 an ounce. The precious metal was in demand with traders after bond yields retreated.

Bank of Queensland given buy rating

The Bank of Queensland Limited (ASX: BOQ) share price is in the buy zone according to analysts at Goldman Sachs. The broker was pleased with its half year results on Thursday and responded by retaining its buy rating and lifting its price target to $9.83. Goldman believes that Bank of Queensland’s guidance for the full year is conservative and expects the bank to outperform it.

Coca-Cola Amatil takeover update

The Coca-Cola Amatil Ltd (ASX: CCL) share price will be on watch today after providing an update on its takeover approach by Coca-Cola European Partners. According to the release, the New Zealand Overseas Investment Office has consented to the takeover. This means that all of the regulatory approval conditions have now been satisfied. Shareholders will now vote on the proposal at a special meeting this morning in Sydney.

More reading

• ASX 200 rises, Zip sinks, BOQ reports
• How pent-up demand could turbocharge ASX 200 energy shares
• What’s going on with the Rio Tinto (ASX:RIO) share price today?
• ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes
• Why the Whitehaven Coal (ASX:WHC) share price is plunging 14%

Motley Fool contributor James Mickleboro 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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