If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow strongly in the coming years.

Two top growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

CSL Limited (ASX: CSL)

The first share to look at is CSL. It is one of the world’s leading biotherapeutics companies and home to the high quality CSL Behring and Seqirus businesses.

CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business. Both have been growing at a solid rate in recent years and have been tipped to continue this trend in the future thanks to their leading therapies and lucrative research and development pipelines.

In respect to the latter, CSL’s pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.

UBS recently retained its buy rating and $346.00 price target on CSL’s shares. This compares very favourably to the latest CSL share price of $274.60.

Nearmap Ltd (ASX: NEA)

Another ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American market.

Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.

Thanks to geographic expansions, new growth initiatives, and the quality of its offering, management believes the company is well-positioned for growth in the future. As a result, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Analysts at Morgan Stanley are positive on the company and have an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.

More reading

• Afterpay and BrainChip were some of the most traded ASX shares last week
• One bullish growth signal for the Afterpay (ASX:APT) share price in 2021
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• 3 five-star ASX shares to buy in January
• 3 blue chip ASX growth 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 CSL Ltd. and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX growth shares to buy for big returns appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pesmqD

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating and $60.60 price target on this health supplements company’s shares. The broker has concerns over the company’s performance in the key China market. Particularly given its market research, which is pointing to market share gains by the is largest competitors. In addition to this, it notes that competition is intensifying in the ANZ market and the daigou channel remains challenged. The Blackmores share price ended the week at $71.63.

Magellan Financial Group Ltd (ASX: MFG)

Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this fund manager’s shares to $41.20. According to the note, the broker has trimmed its price target to reflect changes in its business model that it feels reduces the appropriate price to earnings ratio that its shares trade at. In addition to this, it believes the market is not pricing in a number of risks it is facing and weaker returns from its funds. The Magellan share price last traded at $47.73.

QBE Insurance Group Ltd (ASX: QBE)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $7.70 price target on this insurance giant’s shares. The broker notes that QBE has added an additional US$185m risk margin to cover potential business interruption claims in Australia following an unfavourable ruling in British courts. Outside this, it has concerns over QBE operating through a very difficult period without a permanent CEO. It is also expecting the insurance giant to make huge cuts to its dividend this year. The QBE share price ended the week at $8.45.

More reading

• Top brokers name 3 ASX shares to sell today
• Leading brokers name 3 ASX shares to sell today
• Got money to invest? Here are 3 ASX shares to buy
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Why Beach, Orocobre, Premier Investments, & QBE shares are dropping lower

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

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3iGXvk5

There are some exciting ASX tech shares available to Aussie investors.

Here are three that might be able to make decent returns:

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) looks to give exposure to some of the world’s leading cybersecurity businesses.

Betashares says that cybersecurity is fast-growing sector, with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

The fund’s portfolio includes global cybersecurity giants, as well as emerging players, from a range of global locations.

In terms of the country allocation, the US gets the vast bulk of the weighting with an 88.5% allocation of the ASX tech share’s portfolio. The UK, Israel, Japan and France are the only other countries with a weighting of more than 1%.

The biggest positions in the Betashares Global Cybersecurity ETF include: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Proofpoint, Sailpoint Technologies, F5 Networks and Palo Alto Networks.

Management costs are 0.67% per annum. The ETF’s returns after fees are as follows: 36.75% over the past year, 25.6% per annum over the last three years and 21.4% per annum since inception in August 2016.

Serko Ltd (ASX: SKO)

Serko is a business based in New Zealand that specialises in online travel booking and expense management for the business travel market. It’s a business that’s liked by fund manager by WAM Microcap Limited (ASX: WMI) and is one of the top holdings. 

The ASX tech share is benefiting from an increase in travel as well as the reopening of travel between Australia and New Zealand. Last year Serko raised NZ$67.5 at NZ$4.55 per share to strengthen its balance sheet.

It wasn’t too long ago that Serko released its FY21 half-year result where it said that operating revenue had dropped 66% to NZ$5.1 million. Half-year total travel bookings for the six months had declined 77%, but it has improved to being down 65% for October 2020.

Serko was projecting that travel volumes would be in the range of 40% to 70% of pre-COVID-19 levels by March 2021.

Pushpay Holdings Ltd (ASX: PPH)

The electronic giving ASX tech share is a payments facilitator for large and medium US churches.

Pushpay recently increased its operating profit guidance again.

It said that its processing volume over the month of December 2020 was slightly higher than the company’s internal forecast when guidance was last update. While December donation volumes are usually significantly higher than other months partially driven by tax year-end giving in the US, the level of the increase can vary from year to year.

Management said that the company’s processing volume achieved in December 2020 combined with continuing operating leverage improvements supports a guidance update.

Pushpay also said that it has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. The company said investment into the Catholic segment represents a significant milestone as Pushpay continues to work on being the preferred provider of mission critical software to the US faith sector.

Previous guidance was US$54 million to US$58 million, it then upgraded that guidance for FY21 to a range of between US$56 million and US$60 million. However, it said that uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain. Pushpay expects operating leverage to continue to accrue to the business over the remainder of the current financial year.

At the current Pushpay share price it is valued at 26x FY22’s estimated earnings.

More reading

• Got cash to invest? Here are 3 ASX shares to buy
• 3 extraordinary ASX shares to buy right now
• 3 compelling ASX growth shares to buy
• 2 very exciting small cap ASX shares to watch
• Got money to invest? Here are 3 ASX shares to buy

Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS, PUSHPAY FPO NZX, and Serko Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 exciting ASX tech shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3a1JCsX

If you’re wanting to add a few blue chip shares to your portfolio, then you may want to check out the ones listed below.

Here’s why these ASX shares come highly rated:

Goodman Group (ASX: GMG)

Goodman Group is one of the world’s leading integrated commercial and industrial property companies. It owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks across a total of 17 countries. 

At the last count, Goodman had $51.7 billion of total assets under management globally, 369 properties under management, and 1,600+ customers. Among the latter are the likes of Amazon, DHL, Showpo, and Walmart.

Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally, where demand is strong and transformational changes are driving significant opportunities. This strategy has worked incredibly well and led to Goodman delivering consistently strong growth in earnings and distributions.

One broker that is confident this positive form will continue is Morgan Stanley. It was pleased with its first quarter update and believes the company’s focus on strong locations is paying off. The broker has an overweight rating and $20.90 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company aiming to change lives by developing, manufacturing and distributing innovative medical devices and cloud-based software solutions that better diagnose, treat, and manage sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other key chronic diseases.

Demand has been strong for its innovative products in recent years, leading to stellar sales and earnings growth. This certainly was the case in FY 2020 when it delivered a 15% increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.

The good news is that ResMed has started FY 2021 strongly and appears well-placed to continue this positive form in the future. This is thanks to its world-class products, the massive number of undiagnosed sleep apnoea sufferers globally, and its rapidly growing digital health ecosystem.

In respect to the latter, the company’s digital health ecosystem reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Credit Suisse is positive on the company and has an outperform rating and $31.00 price target on its shares. Though, it is worth noting that the company’s second quarter update will be released on Friday. So investors may want to consider waiting for that before jumping in.

More reading

• 2 fantastic ASX growth shares to buy this month
• The latest ASX broker “buy” ideas that got a valuation upgrade
• 2 outstanding blue chip ASX shares to buy right now
• 2 growing blue chip ASX shares to buy today
• 3 blue chip ASX growth shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 of the best blue chip ASX shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39bdUu0

The ASX reporting season always throws up potential tactical buying opportunities for nimble investors, and this time is no different!

The fact that COVID-19 has triggered a string of unprecedented events may only add to the opportunity.

As it stands, the market is yet to fully appreciate the earnings and dividend upside from ASX stocks that are leveraged to the economic recovery, according to Morgans.

Another better than expected reporting season ahead?

“Domestic cyclicals outperforming overly fearful market expectations was a dominant theme in August,” said Morgans.

“And analyst previews of the 184 stocks under Morgans coverage suggest this trend will continue in February.

“Our analysts expect that 28% of stocks covered have reason to respond positively to February results.”

No easy pickings

But investors will need to be careful. They will have to jump through multiple hoops at the same time to find the best ASX stocks to buy.

This is due to the uncertainties created by the pandemic. Morgans is warning investors to thread carefully if they want to beat the S&P/ASX 200 Index (Index:^AXJO).

“While the recent good form in the economy will benefit segments of the market (retailers, banks, resources), elevated valuations and currency headwinds will temper the performance of others,” added the broker.

ASX stocks to buy for the reporting season

Morgans best tactical calls for the February reporting season included 18 ASX stocks. Below are four that stood out, in my view.

The first is the BHP Group Ltd (ASX: BHP) share price. Iron ore miners have been on a tear due as the commodity defied gravity and sceptics to hit new multi-year highs.

But Morgans picked the BHP share price as one to watch as the miner is likely to unveil a pleasing dividend and possible share buyback.

Another to make the list is the Breville Group Ltd (ASX: BRG) share price. The broker is tipping a strong first half result, which could make FY21 guidance look increasingly conservative.

Other ASX stocks that can rally on their profit results

The Ramelius Resources Limited (ASX: RMS) is another to watch, especially after its recent underperformance.

Even though the gold price has pulled back, the miner is still expected to post a strong earnings before interest, tax, depreciation and amortisation (EBITDA). This will remind investors about its robust cash flows and attractive valuation, added Morgans.

Meanwhile, the Sonic Healthcare Limited (ASX: SHL) share price could also rally on its results. Morgans is predicting a better than expected result for the medical testing group due to the surge in COVID testing across all its key markets.

This is more than enough to offset weakness in its base business as demand for other medical tests fall to the wayside.

More reading

• RBA might end QE in 2021! Will the ASX bubble burst?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• 3 reasons the BHP (ASX:BHP) share price could be in the buy zone
• These ASX shares are falling after being hit by broker downgrades today

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited. Connect with me on Twitter @brenlau.

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

The post Morgans picks February’s reporting season ASX heroes to buy now appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c64XnK

2020 was a strange year in a number of ways. But among the more strange things last year brought ASX investors, none was perhaps more unprecedented than the quantitative easing (QE) program the Reserve Bank of Australia (RBA) initiated for the first time in our country’s history.

Around the world, QE is not a new thing. The United States has been doing it in varying stages since the global financial crisis. Japan’s central bank has been doing QE-like measures for even longer.

But here, we Aussies seemed to be exempt. Or we were, at least. Last November, the RBA announced that our exemption had expired and that the central bank would be buying $100 billion worth of Australian government bonds.

The whole idea behind QE is that it increases liquidity and lowers borrowing costs (interest rates) across the whole economy. That, in theory, leads to higher economic growth. But, as its critics also point out, it also leads to a form of currency creation. That’s why its detractors often label QE as ‘money printing’.

But I’d wager ASX investors haven’t minded QE quite as much. See, QE is normally associated with higher share markets as a result of the increased liquidity in the financial system. Indeed, the S&P/ASX 200 Index (ASX: XJO) is up more than 14% since the RBA began its program at the start of November.

Could quantitative easing be coming to an end?

But according to reporting in the Australian Financial Review (AFR) this week, the party could have an end in sight. According to the report, forecaster Capital Economics is predicting that the RBA will be wrapping up its QE program in April of this year. That’s due to its predictions that, “employment will return to pre-virus levels in the first quarter of 2021, and the unemployment rate will decline to about 6 per cent by the end of 2021, and to about 5.5 per cent by the end of 2022”.

It is also predicting that, across the ditch, the Reserve Bank of New Zealand (RBNZ) will lead the world in actually raising interest rates this year. That is a result of the prediction that the New Zealand unemployment rate will decline to “around 5% by the end of 2021”. 

Another factor in these decisions across both economies is rising house prices. The report states that:

One reason to be optimistic about the outlook is that housing markets in both countries are roaring back to life. House prices in New Zealand are rising by around 20 per cent year-on-year and those in Australia may soon be rising at a double-digit pace, too.

What does no QE mean for ASX shares?

So if the RBA does indeed roll back its QE programs, what would it mean for the ASX 200 and ASX shares? Well, it may indeed result in the market coming off the boil.

But since Australian QE has had a relatively short lifespan, we might not see the same kind of ‘taper tantrum’ that the US markets saw back in 2018 when the US Federal Reserve started rolling back its own QE programs (since reversed, of course). And who knows, maybe if house prices continue to rise and unemployment indeed drops significantly in 2021, it might offset investors ‘dismay’ at QE coming to an end.

However, it is worth keeping in mind that, judging the experiences that other countries have faced, QE seems to be a lot easier to bring in than take away. I’ll personally believe the end of QE is here when I see it.

More reading

• Morgans picks February’s reporting season ASX heroes to buy now
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• These ASX shares are falling after being hit by broker downgrades today
• The latest ASX broker “buy” ideas that got a valuation upgrade

Motley Fool contributor Sebastian Bowen 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.

The post RBA might end QE in 2021! Will the ASX bubble burst? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3666YMR

If you’re looking to gain exposure to the small side of the market, then you might want to take a look at the ASX shares listed below. 

Here’s why these four small cap ASX shares could be ones to watch this year:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software. Its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has a large number of blue chips using its platform. This includes ANZ Bank (ASX: ANZ), Cardinal Health, Nike, and Red Bull. Demand from these companies underpinned solid recurring revenue growth in FY 2020 and the current financial year.

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021. For example, in the first quarter, Damstra revealed record first quarter revenue, cash receipts, and operating cash flow. 

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is an online retail marketplace that has been a positive performer in FY 2021. It recently released its second quarter update and revealed a 165% increase in gross sales to $70.1 million. This led to MyDeal’s first half gross sales increasing 217% over the same period last year to $126.7 million. This was driven by a strong increase in active customers to a record 813,764 and repeat use. Looking ahead, the company intends to use the $40 million raised from its IPO to drive future growth. This includes growing its private label business and investing in advertising to grow its customer base and brand.

Pointerra Ltd (ASX: 3DP)

Pointerra is a technology company that provides a powerful cloud-based solution for managing, visualising, working in, analysing, using, and sharing massive 3D point clouds and datasets. Its platform is able to extract vital information from the data that would otherwise take many hours to do. Management estimates that its market opportunity is currently worth an enormous $500 billion annually.

More reading

• Why Afterpay, Ansell, MyDeal, & PolyNovo shares are storming higher today
• Here’s why the MyDeal (ASX:MYD) share price surged 7% higher today
• The Bigtincan (ASX:BTH) share price has dropped 35% in 3 months
• 2 buy-rated small cap ASX shares for your watchlist
• Why the Bigtincan (ASX:BTH) share price is edging higher 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 and recommends BIGTINCAN FPO and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended BIGTINCAN FPO, Damstra Holdings Ltd, and Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 4 growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c3723z

Are you fed up with the low interest rates on savings accounts? You’re not alone, if you are.

The good news is that the ASX is home to a large number of shares with attractive dividend yields.

National Storage REIT (ASX: NSR)

The first dividend share to look at is National Storage. It is one of the region’s largest self-storage operators with over 190 locations tailoring self-storage solutions to residential and commercial customers.

Although it has a large network, management still sees plenty of room for growth through its acquisition strategy. In fact, since the end of FY 2020, the company has completed eight acquisitions for $139 million and is working to complete a number of development projects.

Management recently reiterated that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also plans to pay 90% to 100% of its earnings out to shareholders as distributions.

Based on the middle of both guidance ranges (8 cents and a 95% payout ratio), this equates to a 7.6 cents per share distribution. Based on the current National Storage share price, this represents a 3.9% yield.

Super Retail Group Ltd (ASX: SUL)

Another dividend share to look at is Super Retail. It is the retail group behind popular store brands such as Macpac, Rebel, and Super Cheap Auto.

It has been a very positive performer in FY 2021. Last week it revealed that it expects to report a 23% increase in half year sales over the prior corresponding period. Things were even better on the bottom line thanks to margin expansion. It is expecting a normalised net profit after tax in the range of $174 million to $177 million. This represents a 135% to 139% increase on the first half of FY 2020.

One broker that is positive on the company is Goldman Sachs. It has just reiterated its buy rating and lifted its price target on the company’s shares to $14.80. The broker also estimates that it will pay a fully franked dividend of 78 cents per share in FY 2021. Based on the current Super Retail share price, this equates to a 6.8% dividend yield.

More reading

• Leading broker tips Super Retail (ASX:SUL) share price to rocket higher
• 2021 has its worries… even for an optimist
• ASX 200 drops 0.8%
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Why the Super Retail (ASX:SUL) share price is surging higher 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.

The post 2 quality ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39a0I8U

There are some ASX shares that could be worth looking into.

The Australian dollar has strengthened over the last year to be worth US$0.77. That makes it cheaper to buy US assets or US earnings.

One of President Biden’s urgent goals is to administer 100 million vaccine shots in 100 days to combat the spread and impact of COVID-19, which may have the effect of helping the various parts of the economy recover.

Here are three ASX share ideas:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) aims to give exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

The focus is on quality US companies that Morningstar believes have wide economic moats. The investments that VanEck Vectors Morningstar Wide Moat ETF targets must be trading at an attractive price relative to Morningstar’s estimate of fair value.

On 21 January 2021, its biggest positions include: Charles Schwab, John Wiley & Sons, Corteva, Intel, Wells Fargo, Cheniere Energy, Bank of America, Constellation Brands, Zimmer Biomet, US Bancorp, Aspen Technology, Blackbaud, Medtronic, Yum! Brands, Gilead Sciences and Berkshire Hathaway.

The ETF has an annual management fee of 0.49% per annum. Over the past five years the VanEck Vectors Morningstar Wide Moat ETF has delivered net returns of 16.6% per annum, beating the S&P 500’s return of 14.5% per annum over the same time period.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is the next ASX share that has a lot of US exposure. Its client base is predominately large and medium US churches. It’s an electronic donation business that also offers other services such as a church management system, a livestreaming service and donor tools.

The company has seen an elevated level of processing volume over the past year as it helps churches and the congregations adapt to the COVID-19 world. In the FY21 half-year result it saw total processing volume increase by 48% to US$3.2 billion. This strength saw earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDA) surge 177% to US$26.7 million in the FY21 half-year result.

Pushpay said that it benefited from growing operating leverage and it’s expecting further operating leverage to come with limited growth of operating expenses whilst operating revenue grows at a faster pace. Pushpay’s gross profit margin went up from 65% to 68% and the EBITDAF margin jumped from 17% to 31%.

The ASX share is hoping to grow its market share to 50% and eventually reach US$1 billion of annual revenue. It’s looking to expand into smaller churches and possibly other geographies to make this goal a reality.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The ETF is invested in 100 of the largest businesses on the NASDAQ.

Many of the world’s biggest and most dominant technology businesses are listed in North America.

The biggest positions in the portfolio are: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Netflix.

Betashares Nasdaq 100 ETF is actually invested in many global leaders, not just the FAANGs. It also gives exposure to Adobe, Intel, Broadcom, PepsiCo, Qualcomm, Costco, Texas Instruments, Moderna, Starbucks, Booking Holdings and Intuitive Surgical.

The ETF has management costs of 0.48% per annum. Betashares Nasdaq 100 ETF has delivered net returns of 34.8% over the last year, 27.4% per annum over the last three years and 21.4% per annum since inception in May 2015.

More reading

• 3 extraordinary ASX shares to buy right now
• 2 tech ETFs delivering rapid growth
• Afterpay and BrainChip were some of the most traded ASX shares last week
• 3 compelling ASX growth shares to buy
• Got money to invest? Here are 3 ASX shares to buy

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 BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, PUSHPAY FPO NZX, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got cash to invest? Here are 3 ASX shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qHvCLC

There are some ASX dividend shares that have a reputation for paying out income to shareholders each year.

It’s harder to make money from bank accounts these days because of how low the official interest rate from the Reserve Bank of Australia (RBA) has gone. It’s now down to just 0.25%.

Here are three businesses that could be considerations for their dividends:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX dividend share with the longest dividend record in Australia. It has grown its dividend in consecutive years going back to 2000 including during COVID-19. The company was formed in 1903, so it’s one of the oldest companies in Australia.

How has it managed that record streak, which goes back before the GFC?

The company has a diversified portfolio of different assets. Some of the key holdings in Soul Patts’ portfolio are: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).

Soul Patts also has unlisted holdings like agriculture, resources and swimming schools.

The portfolio of assets provides Soul Patts with annual cashflow in the form of dividends, distributions and interest. There are defensive businesses within the portfolio, which pay consistent dividends to Soul Patts.

Soul Patts was recently unsuccessful at trying to acquire Regis Healthcare Ltd (ASX: REG), though it shows the type of contrarian approach that management try to take with opportunities.

At the current Soul Patts share price it has a grossed-up dividend yield of 3.1%.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a business that takes investment stakes in global fund managers and then helps them grow either with funding or expertise.

Dean Fremder of Perpetual Limited (ASX: PPT) said when Pacific Current shares were a bit lower: “The stock’s really cheap. It is on nine times earnings. It’s growing earnings at double digits, so more than 10% a year. It’s paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can’t be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one.”

In FY20 the ASX dividend share grew its dividend by 40% to $0.35 per share with funds under management (FUM) going up 62% to $93 billion. In the three months to 30 September 2020 it saw its FUM rise another 14% to $106.4 billion.

According to Commsec, the Pacific Current share price is valued at under 10x FY22’s estimated earnings.

APA Group (ASX: APA)

APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

The infrastructure ASX dividend share has grown its distribution every year for a decade and a half. It recently decided to increase the annualised distribution from 50 cents per unit to 51 cents per unit.

APA continues to invest in new projects which should unlock more operating cashflow as they are completed.

At the current APA share price it has a distribution yield of 5.4%.

More reading

• 3 ASX shares rated as strong buys by brokers
• 3 top ASX dividend shares to buy for 2021 and beyond
• Why the Soul Patts (ASX:SOL) share price will be on watch today
• 5 things to watch on the ASX 200 on Friday
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got money to invest for dividends? Here are 3 ASX shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qHxZ0W