Shareholders will be hoping that the AMP Limited (ASX:AMP) share price will defy the market sell-off after it put a positive spin to its latest quarterly update.

The futures market is pointing to a 1%+ drop in the S&P/ASX 200 Index (Index:^AXJO) this morning due to weak leads from Wall Street.

But all eyes will be on the embattled AMP share price.

Is the worst over for the AMP share price?

Management reported an average 2% increase in assets under management (AUM) for the third quarter for its Australian Wealth Management (AWM) division to $122.1 billion.

While AWM reported net cash outflows of $1.95 billion during the latest quarter, this is steady from the same period last year.

Quarterly outflows starting to improve

Management even ventured on to state that there were signs of underlying improvements if you accounted for the $692 million of early release of super payments. The early release payments were part of the federal government’s COVID‐19 support package for households to weather the pandemic.

That is a relief! It implies the withdrawals are not linked to clients abandoning AMP for its disgraceful conduct exposed at the Banking Royal Commission.

Further, its North wealth platform reported continued growth. This business received $818 million in net cash inflows, including $196 million from external financial advisers.

The bad news in AMP’s quarterly update

But it isn’t all good news for the AMP share price. The group’s AMP Capital division reported a 0.4% drop in assets under management to $189.2 billion due to cash outflows. Net cash external outflows of $1.1 billion were due to redemptions from public markets products.

Another dark spot is the loss of market share of mortgages from AMP Bank. Its total loan book value fell $303 million to $20.6 billion.

Management blames highly competitive market conditions and the economic impact of COVID-19 for the slide.

Home loan competition to hurt

I believe it’s more the former than the latter. Our major banks, such as Commonwealth Bank of Australia (ASX: CBA) doesn’t seem to be impacted in the same way as its loan book is growing ahead of the broader market.

We also know there’s a pick-up in loan applications, particularly from owner occupiers.

Foolish takeaway on AMP share price

The question AMP investors will be asking is how well placed the company is to stem and reverse the market share loss. Afterall, it is on the money when it pointed to intense competition, which isn’t good news for the AMP share price.

Westpac Banking Corp (ASX: WBC) is the latest big bank to announce a very aggressive campaign offering $4,000 cash back to new home loan customers. National Australia Bank Ltd. (ASX: NAB) is also offering a cash handout of $2,000 for new borrowers.

I believe we are only at the start of a mortgage market war as the Reserve Bank of Australia is tipped to cut rates to just 0.1% on Melbourne Cup Day.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s why Westpac (ASX:WBC) just sold its entire Zip (ASX:Z1P) stake
• Warning: Here’s why keeping your savings in the bank is hurting your financial future
• 5 ASX 200 events to watch for this week
• More royal commission pain: NAB (ASX:NAB) gets a $15 million fine

Motley Fool contributor Brendon Lau owns shares of AMP Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many investors are in two minds about buying ASX 200 shares right now. The March bear market spooked investors and there is a feeling a crash is looming once the government life support is switched off.

It’s easy to fall into the trap of market timing. However, I still think there are a few good reasons to buy ASX 200 shares today.

Everyone is waiting for a crash…

Every market commentator seems to know when the market will crash in 2021. But even a broken clock is right twice a day…

Over history, plenty of people have lost more money waiting for an ASX 200 share market crash versus those that invested and lost money in an inevitable correction.

That’s because if I invest $100,000 today, and the market appreciates by 10% per annum, I would have $259,374 in 10 years time. Even if the market crashed 50% in 10 years, I would still have $129,687 in my account.

Market timing can be a dangerous game, as it’s easy to just sit and watch on the sidelines. I’d rather invest in high-quality ASX 200 shares and come along for the ride.

Where else can I get a return?

While the share market may be scary, there aren’t many great alternatives going around.

Interest rates are at all-time lows and potentially pushing towards zero. That means a bank account, term deposit or even many bonds won’t offer much yield.

There are still some strong ASX 200 dividend shares on the market like Telstra Corporation Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). That means I don’t really have many options if I don’t want to partake in market timing.

Many ASX 200 shares are booming

It’s true that we’re seeing something of a ‘two-speed’ economy emerge in 2020. S&P/ASX 200 Index (ASX: XJO) has slumped 7.5% in 2020 but many ASX 200 shares are booming.

Retailers with a strong online presence like JB Hi-Fi Limited (ASX: JBH) have surged in value while tech-focused shares like Afterpay Ltd (ASX: APT) continue to climb.

Not all ASX 200 shares are created equal and its important to think long-term while investing in the short to medium-term.

More reading

• 5 things to watch on the ASX 200 on Thursday
• The best ASX shares to buy during a market crash
• The ASX 200 finished 0.1% higher today
• How has COVID-19 shaken up the Sydney Airport share price?
• Are US shares a better investment than the ASX 200?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Selfwealth Ltd (ASX: SWF) share price has struggled to find its mojo lately after falling to a two month low. The investing platform has faced increasing challenges in recent times with growing competition from international players such as eToro and Stake, as well as new domestic platforms such as Superhero. Today, however, the Selfweath share price could be one to watch after the company announced the results of its annual general meeting (AGM) which could provide its investors with some potential much needed good news. 

Why the Selfweath share price is one to watch 

I’ll be keeping an eye on the Selfweath share price today despite the fact that the company’s AGM largely highlighted old news, including a recap of its outstanding FY20 performance. This included a 313% increase in revenue to $8.6 million, a 235% increase in active traders to 46,445 and $147,000 cash burn down from $3.4 million in FY19. This includes the June and September quarters being cash flow positive for the business. 

In what could be positive news for the Selfwealth share price, the AGM did provide some insight to the company’s FY21 performance to date. This included the company achieving 60,000 active traders and $440 million in client cash as of October. These figures represent 29% and 20% respective increases on FY20 figures in just the first four months of the financial year. 

Selfwealth continues to take market share from its competitors and is currently ranked as the sixth most popular brokerage platform. 6% of all online investors use Selfwealth, up from 4% in December 2019. Interestingly, 11% of all online investors changing brokers choose Selfwealth. The company’s main selling point has been its industry-leading, value for money brokerage fees, coming in at a flat $9.50 per trade. 

International trading 

Selfwealth will be launching United States trading in the December quarter. This highly anticipated move could position it as the home of US direct equities trading for Australian investors. The company intends to maintain its competitive brokerage fees of US$9.50 with no account fees or further commissions. It also intends to maintain a competitive foreign exchange spread of 0.60% when transferring to or from US dollars. This compares to banks and other competitors which can charge up to 1.00%. 

Platform enhancement 

Finally, the AGM concluded with commentary on potential enhancements that will be added over the coming 12 to 18 months. These could be good news for the Selfwealth share price moving forward and include: 

• Platform-wide live pricing as a paid-for feature. This is the number one feature requested by clients. 
• Increased independent stock research for both Australian and US equities. 
• Enabling the creation of ‘minor’ accounts for parents wanting to invest on behalf of their children. 
• Delivering unique initial public offering (IPO) opportunities to investors as well as access to capital raisings and the ability to trade options. 

Two-thirds of Selfwealth clients have indicated they would be willing to pay for additional features or services. 

More reading

• 2 ASX tech shares I’d buy with $10,000

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Thankfully, Australia is now in a position where many COVID-19 restrictions and state borders are starting to lift. I think this could mean good things for domestic tourism. There are some ASX shares that could benefit.

Here are three ideas if you’re wanting to play that domestic tourism theme:

Sealink Travel Group Ltd (ASX: SLK)

This ASX share is the largest (according to Sealink) integrated land and marine, tourism and public transport service provider with international operations in London and Singapore.

Its ferries operates across various regions including Sydney Harbour, Kangaroo Island, the Murray River, Rottnest Island and Stradbroke Island. It also has a large network of bus services under the Transit Systems brand.

In FY20 it grew its underlying net profit after tax and before amortisation by 47.2%, which was a solid result.  

The company has fairly defensive earnings with the bus networks, whilst the tourism side of things could see a recovery in the coming months.

At the current Sealink share price it’s priced at 15x FY23’s estimated earnings.

Ingenia Communities Group (ASX: INA)

Ingenia owns a number of holiday parks around Australia. In August and September it has seen a significant increase of bookings in August 2020 and September 2020 compared to 2019. Revenue booked through the parks and Ingenia Holidays website in the first quarter were up over 50% compared to the prior year.

According to Ingenia, border closures due to COVID-19 have increased demand for intrastate travel. People want coastal locations with driving proximity to capital cities, this is the area experiencing the strongest demand.

Still on the holidays side of things, September occupancy was up to 61.2% with revenue per occupied room (REVPOR) up 11% to $84.31.

At 13 October 2020, 12-month forward bookings were up over 50% compared to October 2019.

The ASX share’s management said that the eventual opening of the Victorian and Queensland borders are anticipated to drive further strong demand, particularly for the NSW south coast, NSW far north coast and tropical Queensland parks.

Another trend that the business is benefiting from is that it’s building an impressive number of retirement rental accommodation. This is helping rental revenue to steadily grow, it has a high occupancy rate and its lifestyle village margins continue to increase.

At the current Ingenia share price it offers a distribution yield of 2.1%.

Star Entertainment Group Ltd (ASX: SGR)

This casino business owns Star Sydney, The Star Gold Coast and Treasury Brisbane. It also owns Sheraton Grand Mirage on the Gold Coast in a joint venture and manages the Gold Coast Convention and Exhibition Centre on behalf of the Queensland government.

Star seems like the safer bet at the moment compared to its main casino competitor that is facing difficulties about its casino licence in NSW. Star’s main casino isn’t suffering from strict COVID-1 restrictions either. 

The ASX share owns some great assets that I expect will see rising activity in the coming months as borders open up again.

The casinos are still missing some VIP visitors from overseas, but at some point those people are going to be able to come back – maybe during 2021.

At the current Star share price it’s still down 23.4% from the price on 16 January 2020. When you consider how low interest rates are, I think its assets may be undervalued for the long-term.

It’s valued at 13x FY23’s estimated earnings.

Foolish takeaway

I think each of these ASX shares look very interesting as short-to-medium buys whilst Australians are stuck in Australia. Ingenia would be the one I’d be happy to own for the longest because of the retirement villages tailwind. In the shorter-term, I think I’d go for Sealink with its diversified growth aspirations.

More reading

• 1 ASX share to buy for the WA housing boom
• Why Beach, Fortescue, Mesoblast, & SeaLink shares are tumbling lower
• Why BHP, Paradigm, Reliance, & SeaLink shares are charging higher today
• SeaLink (ASX:SLK) share price surges to record high on major Singapore contract win
• Why the SKYCITY share price jumped 23% in September

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Santos Ltd (ASX: STO) share price will be in focus on Thursday following the release of its third quarter update.

How did Santos perform in the third quarter?

For the three months ended 30 September, Santos delivered record third quarter production of 25.1 mmboe.

This was 22% higher than the prior quarter and driven by higher production in all five of the company’s core assets. This was particularly the case for domestic gas and LNG volumes.

Third quarter sales revenue grew 2% quarter on quarter to US$797 million. Management believes this demonstrates the strength of Santos’ diversified portfolio of fixed-price domestic gas contracts combined with a higher equity level in Bayu-Undan. This more than offset lower JCC-linked LNG pricing.

In respect to free cash flow, Santos revealed that it generated US$143 million in free cash flow for the quarter. This brought its total free cash flow for the nine months to-date to US$574 million.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, was pleased with the quarter.

He commented: “The operating model combined with our portfolio of fixed-price domestic gas contracts, enabled us to deliver higher quarterly revenues and consistent free cash flow generation despite the impact of significantly lower oil price-linked contracted LNG prices.”

Outlook.

Mr Gallagher appears optimistic that the worst is now over for LNG prices.

“We expect the third quarter to represent the trough for LNG prices, with higher prices expected in the fourth quarter based on current JCC oil-linked and JKM spot pricing, with JKM currently above US$6/mmBtu for December delivery,” he explained.

He also sees growth opportunities for the company once business conditions improve.

“As COVID-19 and the lower oil price continue to challenge us, we have remained resilient with stable revenues and consistent free cash flow generation from the core assets. Our balance sheet is strong and we remain well positioned to leverage our growth opportunities when business conditions improve,” Mr Gallagher said.

No changes have been made to its full year production guidance (83-88 mmboe), but management has been able to lower is upstream unit production cost guidance by 15 to 25 US cents.

It explained: “Upstream unit production cost guidance is lowered to US$8.25-8.75/boe due to continued focus on operating efficiencies across the base business and despite one-off cost impacts due to managing the impact of COVID-19. All other guidance is maintained.”

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• ASX 200 up 0.9%: Big four banks rise, Pro Medicus jumps, miners charging higher
• 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Aerometrex Ltd (ASX: AMX) share price will be on watch on Thursday after the announcement of a very promising new product development.

What did Aerometrex announce?

This morning the Nearmap Ltd (ASX: NEA) rival announced that it has developed a new technology that is able to determine, in three dimensions, the exact fuel load densities in any bushfire prone region in Australia.

The aerial mapping company believes the breakthrough should allow emergency authorities, government, and communities to adopt a far more science-based and pre-emptive fuel load strike position ahead of this year’s bushfire season.

Management advised that this product is an advance of its existing LIDAR (Light Detecting and Ranging) technology. It was developed by the company’s research and development team over 2020 in consultation with government and industry following the disastrous Black Summer fires across Australia last summer.

How does it work?

The release explains that the system employs up to two million individual laser pulses per second. These are emitted from a sensor within an aircraft as it flies above the area of interest.

The system then measures the time taken for each laser pulse to travel down to the surface and get reflected back up to the aircraft. This allows the precise location of the point of reflectance to be calculated in three dimensions. Positively, it can be applied regardless of location, topography, or ground cover.

This delivers a far more accurate image of vegetation and is more sensitive to variations in vegetation structure and density compared to remote sensing techniques such as satellite imagery and RADAR. After which, data from the advanced LIDAR technology allows for the extraction of understorey fuel load estimates that would otherwise be fully obscured from view in satellite or aerial imagery by overlying canopy.

Management notes that the outcomes and product development from its research are both timely and relevant following the detailed recommendations of the Bushfire Royal Commission, state-level bushfire inquiries, and the final reports published by the Bushfire & Natural Hazards CRC.

This is because many of these reports highlighted remote sensing technologies such as LIDAR as critical resources that have the potential to revolutionise bushfire management and response practices.

More reading

• Where to invest your first $500 into ASX shares today
• Aerometrex (ASX:AMX) share price flat despite positive update
• 3 exciting ASX growth shares to buy for stellar long term returns
• Why the Nearmap (ASX:NEA) share price is surging 8% higher today
• Is the Nearmap share price a buy after the tech sell-off?

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Kogan.com Ltd (ASX: KGN) share price has been on an amazing journey over the past six months. It has risen around 250%. Can it go even higher?

What is Kogan.com?

Kogan.com is an e-commerce business where customers can access various retail and services businesses through a single website. There are plenty of different Kogan divisions that customers can decide to buy something from. Those segments include: Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Travel, Kogan Money, Kogan Cars and Kogan Energy. It also owns and operates the online stores of Dick Smith and Matt Blatt.

A key focus of Kogan.com is to provide products and services at a low cost for customers.

What has been happening recently?

It was only a couple of months ago that the online business reported a very impressive FY20 result.

The Kogan share price has risen around 20% since reporting that FY20 gross sales went up 39.3% to $768.9 million. This drove gross profit higher by 39.6% to $126.5 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)  grew by 57.6% to $49.7 million and net profit after tax (NPAT) went up 55.9% to $26.8 million.

Growth was faster in the second half when COVID-19 was actually impacting Aussies. In the last six months of FY20, gross sales, gross profit and adjusted EBITDA went up by 62.5%, 68.3% and 74.1% respectively.

Perhaps the most important statistic was that Kogan.com’s active customer base grew 35.7% to 2,183,000. New customers can turn into long-term repeat customers, if people liked the experience. 

Kogan.com has been giving the market monthly updates since the end of FY20.

In July 2020 it generated gross sales growth of 110%, gross profit growth of more than 160% and it made more than $10 million of adjusted EBITDA. Kogan added another 126,000 of active customers over the month.

In August 2020 Kogan grew gross sales by 117%, gross profit went up 165% and adjusted EBITDA soared 466%. It also added another 152,000 active customers – the largest monthly increase in the company’s history.

Not only is it generating strong growth, but it also has a great balance sheet with a large pile of cash. 

Is the Kogan.com share price a buy?

Businesses that are generating strong growth are definitely worth taking notice of. If Kogan.com can continue to generate higher gross sales from its growing customer base then it can become a much bigger business. The longer someone stays with Kogan and makes additional orders, the more profitable that customer can become for Kogan.

A key thing for the Kogan.com share price and earnings will be whether it can get more of these active customers to use some of the extra services. That would make a customer much more valuable to Kogan and hopefully lead to even higher profit margins.

Many of the ASX’s hottest smaller shares have been rising over the previous months. Some managed to impress the market and go even higher when they gave a first quarter update, like Redbubble Ltd (ASX: RBL). However, others such as Temple & Webster Group Ltd (ASX: TPW) and Megaport Ltd (ASX: MP1) fell heavily in reaction to their first quarter update.  

For what it’s worth, I don’t think the Kogan.com share price will react that strongly either way because investors have been getting monthly updates from the company. We just don’t know the September figures. 

At the current Kogan.com value, it’s trading at 40x FY23’s estimated earnings. It’s certainly not cheap right now. But I think investors need to keep in mind two things. First, the shift to online shopping may well be permanent. COVID-19 has brought forward adoption of e-commerce. I don’t think these strong sales are a once-off. 

Second, interest rates are extremely low and are expected to stay low for a long time. This somewhat justifies the higher price for businesses generating growth.

I think Kogan.com could be a good long-term buy today, but I expect plenty of volatility over the next year or two. This could present further buying opportunities.

More reading

• Where to invest your first $500 into ASX shares today
• 5 ASX shares hitting record all-time highs this week
• New $259 million ASX tech player listing Thursday
• How to make $50,000 of passive income with ASX dividends
• Should you stay invested in an ASX share after a strong run?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When it comes to ASX dividend shares, usually investors are sceptical when a yield of 10% or more is on offer. These shares are often referred to as ‘dividend traps’ because the yields simply look too good to be true (and in a dividend trap’s case, they are). However, sometimes an opportunity for a 10%-plus yield is worth a good look. 

So today, I’ll be looking at an ASX dividend share that indeed offers a trailing dividend yield of 6.95% on current prices, which grosses-up to 9.93% if you include the value of its full franking credits.

That share is WAM Research Limited (ASX: WAX)

What is WAM Research?

WAM Research is a listed investment company (LIC), which basically means it’s a company that buys and sells shares of other companies on behalf of its investors. It’s a similar structure to a managed fund, but is listed on the stock exchange in its own right.

WAM Research is run by the reputable Wilson Asset Management (WAM) and was founded back in 2003. Since 2010, the LIC has returned an average performance of 15% per annum (not accounting for fees and taxes). Its modus operandi is finding ‘undervalued’ industrial growth shares that the management team sees as having a ‘pricing catalyst’ ahead of it (something with the potential to result in share price appreciation). Once this catalyst is realised (if it is), the shares are often sold and the profit banked.

Some of the shares that WAM Research is currently invested in (as of 30 September) include Adairs Ltd (ASX: ADH), Elders Ltd (ASX: ELD), Breville Group Ltd (ASX: BRG), Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL).

Is a 10% dividend sustainable?

WAM Research banks its investing profits in what it calls a ‘profit reserve’. Dividends are then paid out of this profit reserve. So WAM Research’s last two dividends (paid in February and August 2020) came in at 4.9 cents per share each. That 9.8 cents per share in annual dividends is what gives WAM Research a trailing dividend yield of 6.95%, based on the most recent share price of $1.41 (at the time of writing).

So WAM Research’s profit reserve can give us a fairly good idea of how sustainable this massive yield is. As of 30 September, the LIC reported that its profit reserve stands at 34.9 cents per share. Using some crude mathematics, we can see that WAM Research has enough petrol in its tank to fund the current dividend for another three or so years. That looks pretty sustainable to me.

Foolish takeaway

Upon examination, WAM Research’s stupendous 10% dividend yield looks to be sustainable, at the very least for a number of years. Given this LIC’s long history of impressive performance, and its income potential, I think WAM Research would look pretty appealing for those investors seeking dividend income from their ASX shares.

More reading

• New WAM Alternative Assets LIC appoints portfolio manager
• 3 ASX shares I want to buy in October
• Is the WAM Capital (ASX:WAM) 10% dividend yield sustainable?
• Are these high yield ASX dividend shares worth buying?
• 2 ASX dividend shares with yields over 8%

Sebastian Bowen owns shares of WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended ADAIRS FPO, Elders Limited, and Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a lot of quality companies for investors to choose from on the Australian share market.

But two excellent ASX shares that stand out as no-brainers for me are listed below. Here’s why I think they are strong buys:

Altium Limited (ASX: ALU)

The first no-brainer is Altium. I think the electronic design software company is one of the best buy and hold options on the local share market. This is due to the increasingly popular Altium Designer and Altium 365 platforms and its other growing businesses. The latter includes the NEXUS team-based PCB workflow solution and the Octopart electronic parts search engine.

As these businesses have exposure to the rapidly growing Internet of Things (IoT) and artificial intelligence (AI) markets, I believe they are in a strong position for growth over the 2020s. Management certainly believes this to be the case. It is aiming to grow its revenue to US$500 million by 2025-2026. This will be more than 150% higher than FY 2020’s revenue. It is also targeting market dominance in electronic design software and a massive 100,000 subscribers.

NEXTDC Ltd (ASX: NXT)

Another no-brainer ASX share to buy is NEXTDC. It is a data centre as a service (DCaaS) company which operates a number of world class centres in key locations across Australia. Demand for capacity in its centres has been growing very strongly in recent years and particularly during the pandemic as more and more infrastructure shifts to the cloud. This underpinned strong earnings growth in FY 2020 and appears to have put NEXTDC in a position to repeat its heroics in FY 2021.

Another positive is its recent debt update. Not only has the company reduced its cost of debt materially, it has provided it with funds to accelerate its growth. And judging by the fact that some of the funds are multi-currency, NEXTDC could have its eyes on expanding into the Asia market in the future. Overall, with the cloud computing boom only really getting started, I believe NEXTDC is perfectly positioned for growth over the 2020s.

More reading

• Why the Infratil (ASX:IFT) share price is on watch today
• 5 ASX shares hitting record all-time highs this week
• 2 ASX shares I would buy for growth and income today
• Brainchip (ASX:BRN) share price jumps on quarterly update
• 10 must-buy ASX shares to snap up before it’s too late

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The outlook for interest rates in Australia is looking incredibly bleak. In fact, the RBA is widely expected to cut rates again next month.

In light of this, I continue to believe that dividend shares will remain the best way to earn a passive income for some time to come.

But which ASX dividend shares should you buy today? Two that I think investors should snap up right now are listed below:

Accent Group Ltd (ASX: AX1)

Accent is a footwear-focused retailer which owns  a collection of retail store brands such as HYPE DC and Platypus. It also has the exclusive licence to a number of popular shoe brands in the Australian market. 

Thanks to its growing online business and strong and on-trend offering, Accent has been a positive performer in 2020 despite the pandemic. Pleasingly, I believe this form can continue in FY 2021. Especially given the Federal Budget’s tax cuts, which is putting extra disposable income in the pockets of consumers. I expect this to allow Accent to pay a 9 cents per share fully franked dividend over the next 12 months. Based on the current Accent share price, this means investors will receive a forward 4.9% dividend yield.

National Storage REIT (ASX: NSR)

Another option I would buy is National Storage. I believe the self-storage operator could be a great long term option due to its strong position in a fragmented market and its growth through acquisition strategy. In addition to this, an increasing number of small businesses are using its storage units for non-traditional uses such as running their ecommerce businesses. This is made possible thanks to supplied Wi-Fi, shelving, power connectivity, and packaging supplies.

In FY 2021, management has warned that its earnings could be flat because of the pandemic. As a result, I expect it to pay a distribution of 7.6 cents per share over the next 12 months. Based on the current National Storage share price, this represents a generous 4.1% yield.

More reading

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• These ASX dividend shares could be strong buys for income investors
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• Forget Westpac savings accounts and earn an income from these ASX dividend shares
• Looking for income? Buy these strong ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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