Thankfully in this ultra-low interest rate environment, the Australian share market is home to a large number of dividend shares for investors to choose from.

Two ASX dividend shares that could be great options for income investors are listed below. Here’s why they come highly rated:

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the world’s leading iron ore producers and appears well-placed to deliver another robust result in FY 2021. This is thanks to its record shipments, ultra-low C1 production costs of US$12.74 per wet metric tonne, and the sky high iron ore price.

In respect to the latter, the iron ore price has been tipped to climb beyond US$180 a tonne next month. This is being driven by strong demand in China and production disruption in Brazil.

Analysts at Macquarie are expecting this to lead to Fortescue paying a very generous dividend in FY 2021. The broker has pencilled in a dividend of approximately $2.61 per share fully franked. Based on the current Fortescue share price, this equates to a massive 11% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. With the end of the NBN rollout is sight, the arrival of 5G internet, cost cutting, and its T22 strategy, Telstra’s outlook is arguably the most positive it has been in a decade.

In addition to this, the company is aiming to unlock value for shareholders by splitting its business into three separate entities. Management believes the restructure would enable the company to take advantage of potential monetisation opportunities.

Goldman Sachs thinks Telstra would be a good option for income investors. It recently reiterated its buy rating and $3.60 price target on its shares. It has also reaffirmed its forecast for a 16 cents per share fully franked dividend in FY 2021 and beyond. Based on the current Telstra share price, this would provide investors with a 5.3% dividend yield.

More reading

• Leading fund manager names the ASX dividend shares to buy in 2021
• These ASX dividend shares could be top Christmas gifts for income investors
• 3 top ASX dividend shares for a better retirement
• Iron ore prices poised to hit US$180 next month: Westpac
• 3 ASX shares for growth, income, and value investors

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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Luckily for Australian growth investors, the ASX is not short of options when it comes to growth shares.

Three top growth shares for investors to look at today are listed below. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is a leading gaming technology company Although 2020 has been a very difficult year for its poker machine business, its digital business has performed positively and delivered strong growth. Analysts at Citi expect the company to bounce back in FY 2021 and then build on this in the years that follow. As a result. they have recently retained their buy rating and lifted the price target on its shares to $40.60.

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider which has been delivering impressive sales growth over the last few years. This is thanks to its Dante product, which is the clear market leader with 8 times as many enabled devices as its nearest rival. And while FY 2020 was a tough year because of the pandemic, the company looks well-placed to bounce back strongly when the crisis passes. UBS has been encouraged by its recovery and notes its strong performance in the first quarter. It has a buy rating and $8.00 price target on its shares.

Kogan.com Ltd (ASX: KGN)

This ecommerce company could be an ASX share to buy, especially if you’re looking for long term options. Kogan could be a great buy and hold option due to the structural shift to online shopping and the growing popularity of its website. Management has also been making value accretive acquisitions recently that could accelerate its growth in the coming years. One broker that is positive on the company is Credit Suisse. It recently put an outperform rating and $20.60 price target on its shares.

More reading

• 3 ASX shares to buy for 2021 and beyond
• 2 great ASX growth shares that are rapidly expanding
• 2 ASX growth shares to buy when the market reopens
• Got cash to invest? Here are 3 ASX shares to buy
• 2 dirt cheap ASX shares to buy in 2021

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

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There are some unstoppable ASX shares that manage to keep growing almost every year and could be worth considering for a growth-focused portfolio.

Here are some names that could be worth watching:

Xero Limited (ASX: XRO)

The Xero share price is up 83% this year and it has gone up 780% over the past five years.

The ASX share has been delivering subscriber growth and revenue growth for many years. Xero’s FY21 half-year result demonstrated that growth with subscriber numbers going up 19% to 2.45 million and operating revenue grew 21% to NZ$410 million.

COVID-19 conditions caused the company to be very disciplined with its costs and Xero showed how much profit growth it can make when it tries to limit expense growth. The half-year earnings before interest, tax, depreciation and amortisation (EBITDA) grew 86% to NZ$120.8 million, net profit after tax (NPAT) rose by approximately NZ$33 million to NZ$34.5 million and the free cash flow went up approximately NZ$49.4 million to NZ$54.3 million.

Xero CEO Steve Vamos said at the time of the FY21 half-year result: “This result demonstrates the value our customers attribute to their Xero subscription and the underlying strength of Xero’s business model. We continue to prioritise investment in customer growth and product development in line with the long term opportunity we see.”

Two areas of the world that Xero is growing strongly is in the UK and the ‘rest of world’. UK subscribers grew by 19% to 638,000 in the FY21 first half and rest of the world subscribers went up 37% to 136,000.

CSL Limited (ASX: CSL)

The CSL share price has gone up 180% over the past five years.

Ben Clark from TMS Capital recently said this about CSL: “The Seqirus flu business has been given a huge free kick by COVID. We’re going to see plasma collections get easier, more affordable, and the volume should really start to improve through 2021. The return of elective surgeries will be good for the demand side of the business. And then you’ve just got this phenomenal R&D pipeline that continues to flow sort of new products through to the market.”

The FY20 result was another year of growth for CSL. Revenue went up 9% in constant currency terms and net profit after tax went up 17% to US$2.1 billion. This allowed the company to grow its total dividend by 9% to US$2.02 per share.

In FY21 the company is expecting to strong demand from its plasma and recombinant therapies to continue. With Seqirus, CSL is expecting to benefit from its differentiated products and strong demand for influenza vaccines. Sales of albumin are expected to normalise after the successful transition to the new business model in China.

COVID-19 restrictions are expected to impact CSL’s ability to collect plasma and add to the overall cost of collection, although CSL has several strategies to mitigate this impact. Its research and development response to COVID-19, and the new initiatives, will mean CSL is spending more on research and development but it will still be within the range of 10% to 11% of revenue as previously guided.

CSL is expecting to grow revenue by 6% to 10% in FY21, with net profit increasing by 3% to 8%.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 26.6% this year and it has risen by 142% over the last five years.

Demand for products from JB Hi-Fi and The Good Guys was elevated during FY20 as people decided to spend on items for their work, schooling and entertainment at home.

In FY20 the total sales were up 11.6% to $7.9 billion and underlying earnings per share (EPS) went up 33.2% to 289.6 cents. The underlying earnings before interest and tax (EBIT) margin improved by 89 basis points to 6.14%. That result helped grow the full year dividend by 33.1% to $1.89 per share.

In the first quarter of FY21, JB Hi-Fi Australia saw total sales growth of 27.3%, The Good Guys sales grew by 30.9% and JB Hi-Fi New Zealand sales dropped by 2.5%.

It’s the JB Hi-Fi dividend that is very attractive to Plato Asset Management which has JB Hi-Fi as a key holding, saying that businesses with fully franked dividends can achieve significant additional income for retirees. At the current JB Hi-Fi share price it has grossed-up dividend yield of 5.6%.

More reading

• 2 rapidly growing ASX tech shares to buy
• Leading fund manager names the ASX dividend shares to buy in 2021
• 3 reliable ASX 200 shares that keep growing
• 5 fantastic ASX shares to buy in 2021
• 2 of the best ASX healthcare shares to buy in 2021

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 CSL Ltd. and Xero. 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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Telecom companies provide the technology that ties together our increasingly connected world. Companies in this sector provide phone, internet, and television services and the infrastructure to support them.

The sector is often attractive to more conservative investors looking for dividend-yielding shares, but it’s also full of companies with good potential for capital appreciation.

Here’s the top 5 ASX telecom shares that have performed particularly well in 2020.

Company	1-year share price performance	Current share price	Market cap
1. Macquarie Telecom Group Ltd (ASX: MAQ)	123%	$52.29	$1.13 billion
2. Vocus Group Ltd (ASX: VOC)	40%	$4.14	$2.5 billion
3. Chorus Ltd (ASX: CNU)	22%	$7.35	$3.27 billion
4. Uniti Group Ltd (ASX: UWL)	13%	$1.71	$1.05 billion
5. Vonex Ltd (ASX: VN8)	104%	$0.22	$41.2 million

Macquarie Telecom

Macquarie Telecom share price is the clear winner in the battle for top spot, returning more than 130% for shareholders over the year.

The company has had a strong FY20, delivering an 8% increase in revenue to $266.2 million. It’s also been growing steadily for the last 3 years, returning a compound annual growth rate (CAGR) of 6.8%.

Macquarie Telecom has benefited from the boom in cloud computing, generating most of its revenue from hosting and data centre business. Its customers include Fortune 500 companies as well as the Australian Federal Government.

Analysts believe that Macquarie Telecom is set to benefit further over the next few years as the move towards cloud computing gathers pace globally.

Vocus 

Vocus share price returned 40% for investors over the course of the year. The company was founded in 2008 by famed entrepreneur and venture capitalist James Spenceley. 

Its core growth engine is the Vocus Network Services (VNS) – a fibre network that encompasses all of Australia, the Pacific rim to Hong Kong and the east coast of the United States, as well as New Zealand.

The company’s retail offering, meanwhile, includes brands like Dodo and iPrimus.

FY20 was the first year in the company’s 3-year turnaround plan, where it delivered total recurring revenues of $1.75 billion, a 1% decline on the prior year.

The company is predicting an even brighter FY21, and expects earnings to grown between 8% to 12% in its VNS business.

Chorus

New Zealand-based Chorus share price returned an enviable 22% in one year. 

This company is a juggernaut back home, owning the majority of telephone lines and exchange equipment in New Zealand. It’s also responsible for building 70% of the new fibre optic Ultra-Fast Broadband (UFB) network in the country.By law, the company cannot sell UFB bandwidth directly to consumers, instead it provides wholesale services to retailers.

Chorus reported a little-changed profit of NZ$52 million for the year to June. The company has been facing a few regulatory hurdles in New Zealand recently, the latest one being the proposal to impose levies totalling NZ$15 million a year on the telecommunication sector to fund the regulation of the industry.

Uniti

Uniti share price is up by a respectable 13% for the year. After crashing 53% during the February and March COVID-19 market panic, the Uniti share price came charging back, up 115% from its 19 March lows.

The company provides internet and telecommunication services, and was formerly called Uniti Wireless Limited.

Uniti is aggressively making a play into the fibre network business, acquiring Telstra Corporation Ltd (ASX: TLS) high broadband Velocity assets just last week. That acquisition represents Australia’s second largest private FTTP (fibre to the premises) network, with 65,000 connected premises of which 50,000 are active.

For the full year FY20, the company reported a 306% increase in year-on-year revenue, from $14.3 million to $58.2 million.

Vonex

I’ve put this share last on the list despite a superior return, as it’s an outlier being a small cap. The Vonex share price however has doubled, returning 104% for its shareholders in one year.

Vonex is a company on the move, acquiring various companies this year, while delivering solid revenues. In March, the company acquired 2SG Wholesale, bringing 150+ new wholesale customers and expanding its SME (small to medium enterprise) product offerings.

Last week, the company announced its intention to acquire Nextel, which it said would add $1 million to its recurring revenue stream.

Vonex posted healthy results for the September quarter, adding $1.64 million in new retail and wholesale business, and recording a 25% quarter-on-quarter increase.

More reading

• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Why the Uniti (ASX:UWL) share price is zooming 13% higher today
• Why the Uniti (ASX:UWL) share price is on watch today
• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’

Motley Fool contributor Eddy Sunarto 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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Telecom companies provide the technology that ties together our increasingly connected world. Companies in this sector provide phone, internet, and television services and the infrastructure to support them.

The sector is often attractive to more conservative investors looking for dividend-yielding shares, but it’s also full of companies with good potential for capital appreciation.

Here’s the top 5 ASX telecom shares that have performed particularly well in 2020.

Company	1-year share price performance	Current share price	Market cap
1. Macquarie Telecom Group Ltd (ASX: MAQ)	123%	$52.29	$1.13 billion
2. Vocus Group Ltd (ASX: VOC)	40%	$4.14	$2.5 billion
3. Chorus Ltd (ASX: CNU)	22%	$7.35	$3.27 billion
4. Uniti Group Ltd (ASX: UWL)	13%	$1.71	$1.05 billion
5. Vonex Ltd (ASX: VN8)	104%	$0.22	$41.2 million

Macquarie Telecom

Macquarie Telecom share price is the clear winner in the battle for top spot, returning more than 130% for shareholders over the year.

The company has had a strong FY20, delivering an 8% increase in revenue to $266.2 million. It’s also been growing steadily for the last 3 years, returning a compound annual growth rate (CAGR) of 6.8%.

Macquarie Telecom has benefited from the boom in cloud computing, generating most of its revenue from hosting and data centre business. Its customers include Fortune 500 companies as well as the Australian Federal Government.

Analysts believe that Macquarie Telecom is set to benefit further over the next few years as the move towards cloud computing gathers pace globally.

Vocus 

Vocus share price returned 40% for investors over the course of the year. The company was founded in 2008 by famed entrepreneur and venture capitalist James Spenceley. 

Its core growth engine is the Vocus Network Services (VNS) – a fibre network that encompasses all of Australia, the Pacific rim to Hong Kong and the east coast of the United States, as well as New Zealand.

The company’s retail offering, meanwhile, includes brands like Dodo and iPrimus.

FY20 was the first year in the company’s 3-year turnaround plan, where it delivered total recurring revenues of $1.75 billion, a 1% decline on the prior year.

The company is predicting an even brighter FY21, and expects earnings to grown between 8% to 12% in its VNS business.

Chorus

New Zealand-based Chorus share price returned an enviable 22% in one year. 

This company is a juggernaut back home, owning the majority of telephone lines and exchange equipment in New Zealand. It’s also responsible for building 70% of the new fibre optic Ultra-Fast Broadband (UFB) network in the country.By law, the company cannot sell UFB bandwidth directly to consumers, instead it provides wholesale services to retailers.

Chorus reported a little-changed profit of NZ$52 million for the year to June. The company has been facing a few regulatory hurdles in New Zealand recently, the latest one being the proposal to impose levies totalling NZ$15 million a year on the telecommunication sector to fund the regulation of the industry.

Uniti

Uniti share price is up by a respectable 13% for the year. After crashing 53% during the February and March COVID-19 market panic, the Uniti share price came charging back, up 115% from its 19 March lows.

The company provides internet and telecommunication services, and was formerly called Uniti Wireless Limited.

Uniti is aggressively making a play into the fibre network business, acquiring Telstra Corporation Ltd (ASX: TLS) high broadband Velocity assets just last week. That acquisition represents Australia’s second largest private FTTP (fibre to the premises) network, with 65,000 connected premises of which 50,000 are active.

For the full year FY20, the company reported a 306% increase in year-on-year revenue, from $14.3 million to $58.2 million.

Vonex

I’ve put this share last on the list despite a superior return, as it’s an outlier being a small cap. The Vonex share price however has doubled, returning 104% for its shareholders in one year.

Vonex is a company on the move, acquiring various companies this year, while delivering solid revenues. In March, the company acquired 2SG Wholesale, bringing 150+ new wholesale customers and expanding its SME (small to medium enterprise) product offerings.

Last week, the company announced its intention to acquire Nextel, which it said would add $1 million to its recurring revenue stream.

Vonex posted healthy results for the September quarter, adding $1.64 million in new retail and wholesale business, and recording a 25% quarter-on-quarter increase.

More reading

• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Why the Uniti (ASX:UWL) share price is zooming 13% higher today
• Why the Uniti (ASX:UWL) share price is on watch today
• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’

Motley Fool contributor Eddy Sunarto 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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Determining the best shares to buy now is clearly very subjective. Every investor will have their own views on which companies provide the most attractive investment opportunities.

However, some of the most appealing stocks are likely to have a mix of solid fundamentals, sound strategies and track records that suggest they can perform well in a variety of operating conditions.

Buying such companies at fair prices could prove to be a profitable move. They may be more likely to outperform the stock market and deliver high capital returns.

The best shares to buy now may have solid track records

A solid track record of performance in a range of economic situations may differentiate the best shares to buy now from their peers. The economic outlook is currently very uncertain. Political risks are elevated, while the challenges faced in 2020 regarding coronavirus look set to continue at least in the early part of next year.

Therefore, companies that have been able to deliver impressive sales and profit growth in a variety of operating environments could be relatively attractive. They may be able to outperform their peers in the short run, which could equate to lower levels of risk. Meanwhile, they could be in a stronger position to capitalise on a likely economic recovery in the coming years that produces a higher valuation.

A sound growth strategy

The best shares to buy now may also have sound strategies that can lead to growing profitability in the coming years. The past 12 months have included major change across many industries. This could mean that companies with static business models that fail to innovate quickly become outdated.

By contrast, companies that are able to respond quickly to changing consumer tastes may be the major winners in the likely stock market recovery.

Clearly, it is difficult to assess whether a specific strategy will be successful or not. However, by analysing a company’s recent investor updates compared to those of its peers, it is possible to identify the most flexible and adaptable businesses within a specific sector. They may be able to adjust their operations to accommodate a rapidly-changing economic outlook over the long run.

Financial strength ahead of an uncertain 2021

As mentioned, the best shares to buy now are likely to have solid financial positions. While this is always the case, a solid balance sheet may be worth more than usual in the eyes of investors at the present time. Companies with low debt and strong cash flow may offer less risk during what could prove to be an uncertain period for the economy.

They may also be able to invest to a greater extent in new products and services. Over time, this could produce higher profit growth and a rising share price.

More reading

• 3 ASX shares to buy for 2021 and beyond
• Why Amazon’s stock is so expensive
• 2 great ASX growth shares that are rapidly expanding
• 2 ASX dividend shares to buy for 2021
• 2 rapidly growing ASX tech 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 thousands of shares for investors to choose from on the Australian share market.

This can make it very daunting when you’re trying to construct a balanced portfolio of 10 or so shares.

To help you on your way, I have picked out three ASX shares that come highly rated. Here’s what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first share to look at is Damstra. It is a growing integrated workplace management solutions provider. Damstra’s cloud-based workplace management platform is used across the globe to track, manage, and protect workers and business assets.

Demand was so strong in FY 2020 from both new and existing costumers that Damstra delivered a 47% increase in revenue to $23.5 million. Pleasingly, this positive form has continued in FY 2021, with the company reporting record first quarter revenue, cash receipts, and operating cash flow.

Morgan Stanley has been impressed with its performance and has put an overweight and $2.00 price target on the company’s shares.

Goodman Group (ASX: GMG)

Another share to look at is Goodman Group. It is an integrated commercial and industrial property group which has been growing at a solid rate over the past few years. This has been driven by its focus on high-quality properties in key locations that management believes will deliver sustainable returns for investors.

These include logistics and warehouse facilities which have exposure to the growing ecommerce market through relationships with Amazon, DHL, and Walmart.

Analysts at Macquarie have been impressed with Goodman’s performance so far in FY 2021 and believe it is well placed for growth in the coming years. Its analysts have an outperform rating and $19.86 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final share to look at is Kogan. It is a growing ecommerce company and Australia’s equivalent to Amazon.

While Kogan has been performing positively in recent years, its growth went up a gear in 2020 after the pandemic accelerated the shift to online shopping. This led to a material jump in customer, sales, and earnings growth in FY 2020 and has continued into the new financial year.

But management isn’t settling for that. It undertook a capital raising earlier this year to raise funds to make value accretive acquisitions. Kogan has just acquired New Zealand based e-commerce company Mighty Ape for NZ$120 million and previously acquired furniture retailer Matt Blatt for a more modest $4.4 million.

Credit Suisse is a fan of Kogan. It recently put an outperform rating and $20.60 price target on its shares.

More reading

• 2 great ASX growth shares that are rapidly expanding
• 2 ASX growth shares to buy when the market reopens
• Got cash to invest? Here are 3 ASX shares to buy
• 2 dirt cheap ASX shares to buy in 2021
• 2 exciting small cap ASX tech shares to buy

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 Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Trading around $3,200, Amazon‘s (NASDAQ: AMZN) stock comes with a hefty price tag. Amazon shares are on an incredible rally, even if you zoom out and look at it from a longer-term perspective. 

Why are its shares so expensive? Let’s dig a little deeper and try to answer that question. You may find the conclusion a bit surprising. 

What’s causing the surge in Amazon’s stock price? 

Since the start of the pandemic, more and more people have been relying on Amazon to deliver what they want and need to their doorstep. In the first three quarters of the year, sales are up by 34.9% from the same period in 2019. Furthermore, the company is guiding investors that its fourth-quarter revenue is likely to increase by about 33%. And since coronavirus cases are surging in many regions of the world, it would not be surprising if Amazon reports much higher results than expected.

Amazon last commented on Prime membership totals in January, when it had 150 million members. Revenue from subscription services, which includes membership fees paid by Prime members, has increased by 53% in each of the last two quarters. So in the company’s next update, Prime membership is likely to be much higher. Prime members tend to shop more often and spend more than non-members do, and their presence attracts third-party sellers to Amazon’s platform.

Finally, the Amazon Web Services cloud computing business continues to grow revenue rapidly. This is especially important because in the third quarter, even though AWS made up 12% of total revenue, it provided 57% of overall operating profits. High double-digit growth in such a profitable segment brings in cash flow that it can then direct into operations, making it an even more desirable destination for online shoppers. 

Overall, Amazon continues to give shareholders a lot to be happy about.

Is Amazon’s stock actually expensive?

You might be thinking, “Of course it’s expensive — it costs $3,200 per share!” And when looking at it from that perspective, you would be absolutely correct. However, if you consider Amazon on several key financial metrics (see chart below), you will find that it’s not as expensive as you may have initially thought. Its price ratios on three important financial metrics are below historical levels. In particular, its price-to-sales ratio isn’t too much higher than the S&P 500’s average around 2.7, and it’s right in line with the tech-heavy Nasdaq Composite Index, currently around 4.3.

What’s more, Amazon is a better company today than it was when it was trading at higher multiples. The coronavirus pandemic has attracted many people and businesses to Amazon’s products and services. Some of those customers are likely to remain even after the eventual return to normalcy.

It may still be daunting to think of paying $3,200 to buy one share of stock. You may be comforted in knowing that many brokerages now offer the ability to buy fractional shares. That puts Amazon’s stock within the budget of all those interested in becoming shareholders — whether you have $32 to invest or $3,200. 

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

More reading

• In a record-breaking year, here are some of the world’s most popular shares
• US “mum and pop” investors leaving the pros in the dust in 2020 stock rally
• How to invest in US shares in 2021
• Better buy: Amazon vs Chewy
• Amazon has a new strategy to capture India’s e-commerce market

Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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There are some great ASX growth shares out there that could be worth considering for a spot in your portfolio.

Here are two compelling businesses that are growing really quickly:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a business that sells a wide array of furniture and homewares. Indeed, it has over 180,000 products on sale from hundreds of suppliers. It operates a drop-shipping model, where products are sent directly to customers by suppliers which helps with faster delivery times and reduces the need to hold inventory, allowing a larger product range. Temple & Webster also has a private label range which is sourced from overseas suppliers.

The COVID-19 lockdown period caused a lot of growth for online retailers. But the ASX growth share increased its market share during this time – while the category grew by 57% during the months of April to July, Temple & Webster grew by 150% according to the company.

As Temple & Webster grows in size, it’s becoming a larger part of suppliers’ revenue which allows the ASX share to get better stock security, better terms and exclusive product ranges. Getting bigger also means it can invest more in technology, data, marketing and private label products. The company boasted that the bigger it gets, the stronger its customer proposition becomes, which is a helpful cycle.

In FY20 it grew full year revenue by 74% to $176.3 million and second half revenue rose 96%. Accelerated operational leverage helped grow earnings before interest, tax, depreciation and amortisation (EBITDA) by 483% compared to FY19 to $8.5 million, with the adjusted EBITDA margin growing from 2.5% to 5.3%.

It finished FY20 with $38.1 million of cash and no debt, which excludes the proceeds from its $40 million capital raising which was conducted in early FY21.

The ASX growth share continued expanding into FY21 with revenue for the period of 1 July 2020 to 19 October 2020 up 138% compared to the prior corresponding period. FY21 first quarter EBITDA generated was $8.6 million, which was more than the whole of FY20. October revenue growth was still more than 100% and the contribution margin was ahead of its 15% target.

According to Commsec projections, the Temple & Webster share price is valued at 36x FY22’s estimated earnings.

Kogan.com Ltd (ASX: KGN)

Kogan.com is another e-commerce ASX growth share. It sells a wide array of products and services such as phones, computers, furniture, insurance, credit cards and superannuation.

One part of the business is its membership program called Kogan First. Mr Kogan, the founder of the company, has spoken about the benefit to the company of its growing number of people using its loyalty scheme: “The Kogan First community of members grew exceptionally during the second half, and importantly these loyal members on average purchase and save much more often than non-members, demonstrating loyalty to the platform, and also demonstrating the significant savings and other benefits available through the loyalty program.”

The company’s margins have grown over the last few years. In FY17 the EBITDA margin was 4.3% and it had more than doubled to 9.3% by FY20.

Growth in FY21 to the end of October 2020 remained elevated, with gross sales up around 100%, gross profit was up 131.7% and adjusted EBITDA had grown by 268.8%.

Kogan.com is expanding in New Zealand with an acquisition called Mighty Ape, which is also a fast-growing e-retailer. It specialises in gaming, toys and other entertainment categories. The ASX growth share believes it can build on Mighty Ape’s offering and provide the infrastructure to grow further.

In FY21 Mighty Ape is forecast to generate revenue of $137.7 million, gross profit of $45.7 million and EBITDA of $14.3 million, which represents growth of 43.7%, 58.1% and 254.1% respectively.

According to Commsec projections, the Kogan.com share price is valued at 26x FY23’s estimated earnings.

More reading

• 2 ASX growth shares to buy when the market reopens
• Got cash to invest? Here are 3 ASX shares to buy
• 2 dirt cheap ASX shares to buy in 2021
• These ASX shares have more than doubled in 2020
• 2 exciting mid cap ASX shares to buy for the long term

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Are you looking for some dividend options for your portfolio in 2021? Then check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys for next year:

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT is an Australian ASX-listed real estate investment trust with a focus on social infrastructure properties. Management is targeting ongoing capital growth by investing in assets with specialist use, limited competition, and low substitution risk.

An example of this is its recent $122.5 million acquisition of a property that is under construction and will be the new corporate headquarters of Mater Misericordiae. This is Queensland’s largest Catholic not-for-profit health provider.

It is also thanks to this focus that the Charter Hall Social Infrastructure REIT enjoys such a high occupancy rate and long leases. At the end of FY 2020, it had a 99.5% occupancy rate for its 395 properties and a weighted average lease expiry (WALE) of 12.7 years.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.35 price target on its shares. The broker is expecting a 15 cents per share dividend in FY 2021. Based on the latest Charter Hall Social Infrastructure REIT share price, this represents a 4.5% yield.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company. It provides companies with innovative solutions to workforce challenges.

It was a strong performer in FY 2020 despite facing headings from the pandemic. For the 12 months ended 30 June, People Infrastructure reported an impressive 49.2% increase in normalised EBITDA to $26.4 million.

While no guidance has been given for FY 2021, analysts at Morgans appear very positive on its prospects. The broker recently put an add rating and $4.05 price target on its shares. In addition to this, it is forecasting a dividend of 11 cents per share this year.

Based on the latest People Infrastructure share price, this will mean a fully franked 3.2% dividend yield.

More reading

• 3 ASX shares for growth, income, and value investors
• 2 dirt cheap ASX shares to buy in 2021
• 2 ASX dividend shares offering generous yields in 2021
• Why the People Infrastructure (ASX:PPE) share price will be on watch today

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 People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure 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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