After a poor start to the day, the S&P/ASX 200 Index (ASX: XJO) has fought back and is pushing higher in late morning trade. The benchmark index is currently up 0.3% to 5,979 points.

Four shares that have climbed more than most today are listed below. Here’s why they are pushing higher:

The A2 Milk Company Ltd (ASX: A2M) share price is up 2% to $14.47. This is despite there being no news out of the infant formula company this morning. However, with its shares down significantly over the last couple of weeks, investors appear to believe they have fallen to an attractive level. Investors were selling off a2 Milk’s shares last week after the release of a disappointing update.

The Afterpay Ltd (ASX: APT) share price has climbed 2.5% to $85.74. Investors appear to have been rotating out of resources shares and into tech shares on Wednesday. This has led to the the S&P/ASX All Technology Index (ASX: XTX) rising by a sizeable 1.6% at the time of writing. Also supporting the Afterpay share price was a reasonably positive broker note out of Goldman Sachs on Tuesday.

The ARB Corporation Limited (ASX: ARB) share price is up almost 4% to $30.51. The catalyst for this solid gain has been the release of a first quarter update by the 4×4 accessories company this morning. According to the release, strong demand in export markets led to unaudited sales revenue growth of 17.7% for the first quarter of FY 2021. Profit before tax for the quarter was $29.7 million. This compares to first half profit before tax of $34.4 million in FY 2020.

The SEEK Limited (ASX: SEK) share price has risen 2% to $22.23. Investors have been buying the job listings giant’s shares on Wednesday following last night’s Federal Budget. They appear confident that the budget will help create jobs, which should lead to an increase in listings volumes on its dominant platform.

More reading

• Why the ARB (ASX:ARB) share price is charging to a record high today
• Could Flexigroup (ASX:FXL) be an opportunity if you missed the Afterpay share price run? 
• Why the Afterpay (ASX:APT) share price is charging higher today
• A2 Milk and Mesoblast were among the most traded shares on the ASX last week
• Why this ASX tech share could be better than BNPL stocks 

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended ARB Limited and SEEK Limited. 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.

The post Why a2 Milk, Afterpay, ARB, & SEEK shares are pushing higher today appeared first on Motley Fool Australia.

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The EML Payments Ltd (ASX: EML) growth story last year was taking shape to become legendary like ASX growth shares such as Afterpay Ltd (ASX: APT) and Xero Ltd (ASX: XRO). In 2019, the EML share price soared more than 500% following strong growth figures, geographic expansions and a game-changing acquisition.

Following the lockdown measures imposed by a majority of developed countries, EML’s earnings started to feel the crunch and so did its share price, which is down more than 40% since its February highs. As economic activity and social mobility starts to pick up, is EML ready to become a leading ASX200 growth share again?

FY20 highlights 

More than 50% of EML’s FY20 revenue came from its gift and incentive (G&I) segment in the form of gift cards for shopping malls. The G&I segment experienced a strong start to the year with January and February volumes up 26% on the prior corresponding period. As COVID-19 hit, its March to June performance was down 32% on pcp. The G&I performance has stabilised with a recovery in European economic activity. June group mall volumes represented 76% of its February 2020 and 73% of June 2019 volumes. 

The company’s general purpose reloadable segment (GPR) comes in the form of gaming debit cards, salary packaging and other fintech enabled services. This segment has seen a strong 75.3% increase in revenue driven by organic growth in salary packaging with large scale clients such as NSW Government and Smartgroup Corporation Ltd (ASX: SIQ).

Overall, the group experienced a 25% increase in revenue to $121.6 million and 10% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $32.5 million. The company maintains a strong balance sheet with an impressive $118 million in cash. 

Will EML be an ASX growth share in 2021? 

Despite a 40% discount from its February highs, EML still trades at a relatively expensive price-to-earnings (P/E) ratio of 86. Notwithstanding the risks to its business model, the company does have many redeeming factors that could see it make a recovery in 2021. 

The revenue mix of its Prepaid Financial Services (PFS) acquisition is highly GPR-orientated with product offerings such as banking as a service (BaaS), multi-currency travel cards and fintech services to government, local authorities and NGO. While PFS did experience some impacts to its BaaS revenues and multi-currency program volumes amidst COVID-19, its volumes have recovered to now exceed pre-COVID-19 levels.

The PFS acquisition was completed late FY20 and only contributed one quarter worth of revenues. The full year contribution of PFS revenues in FY21 should see the group’s revenue mix weigh more on GPR and less dependent on G&I and shopping malls. GPR revenues could also further benefit from companies seeking digital payment solutions as part of the global trend to move away from cash payments.

Foolish takeaway 

I believe there are many redeeming factors for the EML business driven by its PFS acquisition and increasing demand for digital payment solutions. This could see the EML share price make a return in FY21 and regain its ASX growth share status. 

More reading

• Are these 3 ASX shares strong recovery opportunities?
• These were the best performing shares on the ASX 200 last week
• 3 ASX shares you’ll regret not buying during this correction

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Emerchants Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 BHP Group Ltd (ASX: BHP) share price is out of form on Wednesday and dropping lower.

At the time of writing, the mining giant’s shares are down 2% to $35.52.

Is this a buying opportunity?

If you’re interested in adding some diversification to your portfolio by investing in the resources sector, then I think you ought to consider this share price decline as a buying opportunity.

I believe BHP is the highest quality company in the sector and a great option at the current level. Especially given its generous yield, favourable commodity prices, and its growth opportunities.

One broker that agrees that this is a buying opportunity is Goldman Sachs.

In response to its acquisition of a further stake in the Shenzi asset in the Gulf of Mexico (GoM) on Tuesday, the broker has retained its buy rating and $40.10 price target on BHP’s shares.

This price target implies potential upside of approximately 13% excluding dividends and 18.5% including them.

What did Goldman Sachs say?

Goldman Sachs was pleased with the company’s decision to acquire a greater stake in the Shenzi asset.

It commented: “Shenzi is currently 44% owned (this will increase to 72% if the acquisition closes) and operated by BHP. The transaction implies a valuation of c.US$1.8bn (100%); we currently value Shenzi at c.US$3.5bn (100%) using our long run oil price of US$60/bbl (real), and see this being a highly accretive acquisition.”

The broker also believes that other acquisitions in the area could be a smart move by management and add value for shareholders.

“We continue to think bolt-ons in the GoM make sense, including BHP pursuing accretive opportunities in the current environment that utilise existing infrastructure to unlock high returning brownfield growth, or infrastructure exposure to help unlock new frontiers, such as T&T deepwater gas and conventional oil in the Western GoM,” it explained.

Why is Goldman Sachs buy rated?

There are four key reasons why Goldman Sachs has a buy rating on BHP’s shares.

The first is its current valuation, noting that its shares are trading at 0.92x their net asset value.

It also likes the company due to its positive view on oil, copper, and met coal prices in 2021. These represent 35% of its operating earnings. In addition to this, it sees plenty of organic growth options across the aforementioned commodities.

Finally, it believes “BHP will win the Pilbara capex, margin and FCF/t battle over RIO and FMG within the next 2 years post the ramp-up of the high grade South Flank mine.”

I think Goldman Sachs is spot on and BHP is well worth considering today.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on mixed day, big gold merger
• ASX 200 down 0.2%: Northern Star & Saracen announce mega merger, IAG settles class action
• BHP (ASX:BHP) share price lower after US$505 million Shenzi oil investment
• Top brokers name 3 ASX dividend shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia 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 like real estate investment trusts (REITs) for dividends. However, you may not need to concentrate your portfolio in companies like Mirvac Group (ASX: MGR) if income is what you’re after.

Why you may not need ASX REITs for dividends

The Aussie REITs are required to pay out above 90 per cent of their earnings each year as part of the trust structure. That has historically made them strong ASX dividend shares which income investors love.

However, there are plenty of other ASX shares that have strong yields over and above the ASX REITs.

That includes companies like Fortescue Metals Group Limited (ASX: FMG) with 10.5% and New Hope Corporation Limited (ASX: NHC) with 11.7%.

I think there are other ASX dividend shares out there outside of the real estate offerings which means investors have plenty of options.

What if I want to invest in real estate?

Investing in ASX REITs makes more sense if you want an allocation to real estate. Buying private real estate is expensive in many parts of the country and comes with significant tax and transaction costs.

That means shares like Scentre Group (ASX: SCG) could be good exposure. However, unlike private real estate these investments don’t receive favourable tax treatment, which is a big negative.

There’s also the argument that you get plenty of exposure to ASX REITs via a broad market exchange-traded fund (ETF). Buying something like BetaShares Australia 200 ETF (ASX: A200) provides exposure to nearly all the same investments as the S&P/ASX 200 Index (ASX: XJO).

That includes your favourite ASX REITs alongside even more diversified exposure to other sectors.

Foolish takeaway

If you want targeted exposure then ASX REITs can be your friend. You can choose to just invest in commercial, residential, office, retail and many more real estate areas based on your choices.

However, if you’re just looking for a strong dividend, I don’t think you need to look only at REITs.

More reading

• How the federal budget will impact on your ASX stock portfolio
• Federal Budget: What it means for the CSL (ASX:CSL) share price
• Why this Federal Budget is good for many ASX shares
• Buy Fortescue (ASX:FMG) and this ASX dividend share for income
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall 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 market may be dropping lower today, but that hasn’t stopped the ARB Corporation Limited (ASX: ARB) share price from charging to a new record high.

At the time of writing the 4×4 accessories company’s shares are up 4% to $30.70.

Why is the ARB share price charging higher?

Investors have been buying ARB’s shares on Wednesday after the release of a first quarter trading update this morning.

According to the release, ARB has achieved unaudited sales revenue growth of 17.7% for the first quarter of FY 2021. This compares to 5% growth during the first quarter of FY 2020.

ARB also revealed that its profit before tax during the first quarter was $29.7 million. This doesn’t include non-recurring government benefits of $9.7 million.

However, while no comparison was given for the first quarter of FY 2020, this appears to be a significant increase. For example, during the first half of the previous financial year, ARB recorded a profit before tax of $34.4 million.

This means that it has already achieved 86% of FY 2020’s first half profit before tax after one quarter.

What is driving this strong growth?

The key driver of this growth has been strong demand in export markets.

In the local market sales growth was moderate due to an expected decrease in sales to OEMs compared with the same period last year and the Melbourne lockdowns.

Management believes pent-up demand and a shift in tourism trends are responsible for this strong growth.

It commented: “The Board believes a substantial proportion of the recent growth can be attributed to satisfying pent up demand created during the lockdown period. In addition, an increased trend towards local touring in several countries has been helpful and government support has provided spending stimulus to people and businesses.”

Pleasingly, this strong export demand is expected to continue in the near term.

“In the absence of a significant change in the economic environment, export sales are expected to remain strong and the OEM order book is growing,” it added.

However, while management believes the company’s short to medium term outlook is positive, it acknowledges that the future economic environment remains very uncertain. As a result, no guidance can be given for the remainder of the financial year.

More reading

• Here’s why the Magellan (ASX:MFG) share price is pushing higher today
• 3 simple steps I’d take to find top income stocks to buy in October 2020
• Why the Federal Budget is good for the Transurban (ASX:TCL) share price
• How the federal budget will impact on your ASX stock portfolio
• Why the Altium (ASX:ALU) share price is one to watch today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. 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 Magellan Financial Group Ltd (ASX: MFG) share price is on the move on Wednesday morning.

At the time of writing the fund manager’s shares are up 1% to $59.59.

This means the Magellan share price is now up 19.9% over the last 12 months from $49.70.

Why is the Magellan share price on the move on Wednesday?

This morning Magellan released its latest funds under management (FUM) update for the month of September.

According to the release, Magellan experienced net inflows of $1,198 million in September. This included net retail inflows of $239 million and net institutional inflows of $959 million.

This ultimately led to the fund manager’s FUM increasing 1.2% month on month to a total of $102,088 million. This comprises Institutional FUM of $74,397 million (up 1.4% month on month) and Retail FUM of $27,691 million (up 0.7%).

Where in the market is the money heading to?

Australian equities were out of favour with Magellan’s investors in September. The total FUM invested in this side of the market fell 3.1% during the month to $7,158 million.

Global Equities continue to be the most popular destination for its FUM, with $77,655 million invested here. This is a 0.7% month on month increase and represents 76% of its total FUM.

However, the area of the market where the majority of its inflows went last month was Infrastructure Equities. The total FUM invested here lifted 5.6% during the month to $17,275 million.

Investors appear confident that infrastructure is the place to be right now as governments invest heavily in the space to reignite their economies following the pandemic.

The Magellan Infrastructure Fund has been designed to provide investors with efficient access to the infrastructure asset class, while also protecting capital in adverse markets. It invests in the likes of Atmos Energy, Xcel Energy, and Transurban Group (ASX: TCL).

More reading

• 3 ASX shares I want to buy in October
• How to generate $50k a year from ASX dividends
• Top ASX Stock Picks for October 2020
• 3 ASX 200 passive investing shares to buy today
• 3 reasons to buy Magellan (ASX:MFG) today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban 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.

The post Here’s why the Magellan (ASX:MFG) share price is pushing higher today appeared first on Motley Fool Australia.

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Finding the best income stocks to buy today may prove to be a difficult task. The uncertain economic outlook and weak investor sentiment towards many sectors could mean that the short-term prospects for many dividend shares are somewhat challenging.

However, focusing on defensive stocks that have affordable shareholder payouts could be a good place to start. They may offer a resilient income stream that grows at an above-inflation rate in the long run. This could provide you with a generous passive income, as well as a growing portfolio valuation.

Defensive stocks

The uncertain economic outlook means that defensive shares could prove to be relatively attractive income stocks. They may be less affected by factors such as weak GDP growth and higher unemployment than many of their index peers. This may enable them to deliver more resilient financial performances that mean there is less chance of a dividend cut.

Of course, defensive stocks are not without risk. For example, utility companies have robust business models that are not closely correlated to the economic outlook. However, they may face challenges such as regulatory changes that lead to an evolving dividend outlook. Therefore, it is important to ensure that the yield obtained from any stock is sufficiently high given its risk profile and long-term prospects.

Income stocks with affordable dividends

The future prospects for all income stocks are arguably less certain now than they have been for a number of years. Therefore, it is logical for investors to demand a margin of safety so that there is less chance of dividends being reduced.

For example, you may wish to only purchase those stocks that have dividends covered generously by net profit. This means that if sales and profitability fall in the coming months, there is a higher chance that they will be able to afford their dividend payouts. Furthermore, there may be a greater prospect of dividend growth that outperforms inflation in the coming years.

Checking the dividend cover of any income stocks can be undertaken by dividing its earnings per share by dividends per share. Any figure above one means profit covered dividends, but in the current climate investors may wish to demand a higher figure to compensate them for elevated risks.

Long-term growth potential

While the prospect of dividend growth may not be on the radar for many income stocks, it could make a significant difference to your overall returns. Those businesses that can grow dividends at a fast pace may not only provide a higher income for investors, their shares could become increasingly demanded in a period of low interest rates. This may produce capital gains that improve your financial prospects.

Therefore, focusing on companies with sound growth strategies that can adapt to changing economic conditions could be a sound move. It could improve your portfolio’s performance in the coming years.

More reading

• Why the Federal Budget is good for the Transurban (ASX:TCL) share price
• How the federal budget will impact on your ASX stock portfolio
• Why the Altium (ASX:ALU) share price is one to watch today
• Could Flexigroup (ASX:FXL) be an opportunity if you missed the Afterpay share price run? 
• Is the CBA share price a buy right now?

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. 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.

The post 3 simple steps I’d take to find top income stocks to buy in October 2020 appeared first on Motley Fool Australia.

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The Federal Budget has dropped and Australia is headed into deep debt thanks to strong deficit spending. That could be good news for infrastructure groups and, as such, I’ve got my eye on the Transurban Group (ASX: TCL) share price.

Why is the Federal Budget good for the Transurban share price?

There was plenty to unpack from last night’s Federal Budget announcement by Treasurer Josh Frydenberg.

The government is set to push Australia into $1 trillion of debt but all that money has to go somewhere. $10 billion of that is earmarked for infrastructure to go with the government’s existing $100 billion plans.

That could mean major infrastructure players like Transurban could benefit. I think the Transurban share price will be one to watch when the market opens today.

More infrastructure spending could mean more subsidies and project support for major employers and spenders like Transurban.

It’s not just the Aussie toll road operator that I’m watching. I think other infrastructure shares like Lendlease Group (ASX: LLC) are worth a look.

The Federal Budget showed the Coalition is serious about spending Australia out of a recession. I was already quietly bullish on the Transurban share price but I think this helps cement that even further.

High-quality assets are hard to come by, especially at scale. That means major operators like Lendlease and Transurban could benefit from a cash splash.

When times are tough, it’s good to have a strong balance sheet to fall back on. Even if share prices fall, I like the comfort of hard assets compared to growth that supports valuations for the likes of Afterpay Ltd (ASX: APT).

Foolish takeaway

There’s plenty to take away from last night’s Federal Budget. I think the increased $10 billion for infrastructure spending is good news for infrastructure players in general.

The Transurban share price is down 4.2% this year but could be worth watching in 2021.

More reading

• Ignore the noise and focus on these ASX shares instead
• 5 things to watch on the ASX 200 next week
• Top ASX Stock Picks for October 2020
• How to make money by investing in ASX 200 shares
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Transurban 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.

The post Why the Federal Budget is good for the Transurban (ASX:TCL) share price appeared first on Motley Fool Australia.

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The Federal Budget has dropped and Australia is headed into deep debt thanks to strong deficit spending. That could be good news for infrastructure groups and, as such, I’ve got my eye on the Transurban Group (ASX: TCL) share price.

Why is the Federal Budget good for the Transurban share price?

There was plenty to unpack from last night’s Federal Budget announcement by Treasurer Josh Frydenberg.

The government is set to push Australia into $1 trillion of debt but all that money has to go somewhere. $10 billion of that is earmarked for infrastructure to go with the government’s existing $100 billion plans.

That could mean major infrastructure players like Transurban could benefit. I think the Transurban share price will be one to watch when the market opens today.

More infrastructure spending could mean more subsidies and project support for major employers and spenders like Transurban.

It’s not just the Aussie toll road operator that I’m watching. I think other infrastructure shares like Lendlease Group (ASX: LLC) are worth a look.

The Federal Budget showed the Coalition is serious about spending Australia out of a recession. I was already quietly bullish on the Transurban share price but I think this helps cement that even further.

High-quality assets are hard to come by, especially at scale. That means major operators like Lendlease and Transurban could benefit from a cash splash.

When times are tough, it’s good to have a strong balance sheet to fall back on. Even if share prices fall, I like the comfort of hard assets compared to growth that supports valuations for the likes of Afterpay Ltd (ASX: APT).

Foolish takeaway

There’s plenty to take away from last night’s Federal Budget. I think the increased $10 billion for infrastructure spending is good news for infrastructure players in general.

The Transurban share price is down 4.2% this year but could be worth watching in 2021.

More reading

• Ignore the noise and focus on these ASX shares instead
• 5 things to watch on the ASX 200 next week
• Top ASX Stock Picks for October 2020
• How to make money by investing in ASX 200 shares
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Transurban 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.

The post Why the Federal Budget is good for the Transurban (ASX:TCL) share price appeared first on Motley Fool Australia.

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The $100 billion federal budget boost to businesses will give our economy the kickstart it needs to get to COVID normal. But it isn’t all good news for ASX investors.

Don’t get me wrong. I think there are few areas wanting in Treasurer Josh Frydenberg’s first budget – and he’s gone big for his first rodeo.

There are incentives for businesses to hire workers under 35, invest in plant and equipment for instant write-offs and bring forward losses till FY22.

Federal budget favours ASX growth over income stocks

The big budget is aimed at creating 950,000 jobs over the next four years, and I don’t have a reason to think this won’t work.

That can only be good news for our economy and that can only translate into higher profits for ASX stocks. But before you throw your hands up the air in celebration, this budget could be bad news for income investors hunting for dividends.

How ASX dividends could be affected by federal budget

You see, the enticing incentives are aimed to get companies to invest and hire. That means less retained earning to be handed back as distributions to shareholders.

Also, these companies will be paying less tax till at least FY22 thanks to generous Uncle Frydenberg. Unless the ASX stock holds a large bank of franking credits, this could limit their ability to hand back the generous tax credit to income investors.

The other point to note is that companies that generate revenue of over $5 billion are largely excluded from many of the tax and investment incentives. So this could push income investors into a concentrated area at the top the S&P/ASX 200 Index (Index:^AXJO).

But make no mistake. The budget unintentionally favours growth stocks over income.

This sector is a big winner from the FY21 budget

On that note, there are a number of stocks that are well placed to benefit from the government’s cash splash.

One area that the federal government is targeting is infrastructure construction. Frydenberg unveiled $14 billion in new and accelerated projects nationwide, a $2 billion road safety upgrade an $1 billion for local councils to improve footpaths and local roads.

There is also $2 billion set aside for water infrastructure to win over our farmers who have been doing it tough with bushfires and drought.

ASX stocks that will benefit

I believe heavy equipment rental group Seven Group Holdings Ltd (ASX: SVW) is well placed to benefit from this 10-year pipeline of projects.

Another that could do quite well is the Downer EDI Limited (ASX: DOW) share price due to its exposure to civil engineering work.

Building supplies groups like the Boral Limited (ASX: BLD) share price and Adbri Ltd (ASX: ABC) are another group of likely beneficiaries.

Demand for building supplies will also be bolstered by the extra 10,000 places for new home buyers under the government’s 5% deposit scheme.

More reading

• Federal Budget: What it means for the CSL (ASX:CSL) share price
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on mixed day, big gold merger
• Why the Coles Group (ASX:COL) share price just got upgraded to “buy”
• What investors learnt from the RBA’s rate decision today

Motley Fool contributor Brendon Lau owns shares of Seven Group Holdings Limited. 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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