If you have money ready to deploy to try to find dividends from ASX shares then there are some contenders to think about.

Here are three to consider:

Pacific Current Group Ltd (ASX: PAC)

This company is a business which invests in fund managers across the world. It then helps those fund managers grow with capital and/or Pacific’s expertise.

Dean Fremder of Perpetual Limited (ASX: PPT) said when Pacific Current shares were around this level: “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. This was supported by an 18% increase in underlying earnings per share (EPS) with funds under management (FUM) growing by 62% to $93 billion.

Pacific’s quarterly update for the three months to 31 December 2020 showed FUM had grown to AU$112.8 billion. It would have been even higher if the Australian dollar hadn’t strengthened significantly against the US dollar. Most of the growth was delivered by key investment manager GQG, which grew FUM by more than US$35 billion during the 2020 calendar year.

At the current Pacific Current share price it has a grossed-up dividend yield of 8.2%.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX dividend share with one of the longest records on the ASX – it hasn’t cut its dividend for over four decades.

The dividend has been supported over the decades by its large holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Brickworks currently owns around 40% of the business after selling some shares to fund its US acquisitions.

Soul Patts is an investment conglomerate that has been paying a dividend every year since it listed in 1903. It has a diversified portfolio across various industries including telecommunications, resources, pharmacies, building products, agriculture and financial services.

Over the last decade or two the Brickworks dividend has also been supported by its property earnings. It owns a 50% stake in an industrial property trust along with Goodman Group (ASX: GMG). Properties are built on excess Brickworks land. As more properties are completed, it increases the value of the trust and grows the rental profit distributions.

At the current Brickworks share price it has a grossed-up dividend yield of 4.3%.

Charter Hall Long WALE REIT (ASX: CLW)

This ASX dividend share is a real estate investment trust (REIT). It is liked by a few different brokers including Citi.

Charter Hall Long WALE REIT currently is guiding that its operating EPS and distribution will be at least 29.1 cents per unit, which meant that guidance was left unchanged from previous guidance.

The REIT reported its FY21 half-year result this week which showed that operating EPS and the distribution were up 3.6% to 14.5 cents per unit.

Citi thinks that considering the FY21 half-year result was slightly better than the broker was expecting, there is upside considering Charter Hall Long WALE REIT bought around $700 million of new assets during the period.

The ASX dividend share has a weighted average lease expiry (WALE) of 14.1 years, which is one of the longest in the REIT sector.

It has a number of major, stable tenants including Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP and Woolworths Group Ltd (ASX: WOW).

At the current Charter Hall Long WALE REIT share price, it has a distribution yield of at least 6% for FY21.

More reading

• 3 ASX shares rated as strong buys by brokers
• 3 top ASX dividend shares to buy
• 3 ASX dividend shares with higher yields
• 2 ASX dividend shares rated strong buys by brokers
• ASX 200 rises 0.6%, Vocus jumps on takeover offer, Afterpay hits new record

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

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Cimic Group Ltd (ASX: CIM) shares will be watched closely by investors once the market opens this morning. This comes after the company announced yesterday it has secured several contract extensions in the power industry. 

The Cimic share price finished Wednesday’s session 17% lower at $21.56 due to its disappointing full-year results.

What was announced?

The Cimic share price could be on the rebound today following a positive update to the market after Wednesday’s session.

According to its release, Cimic advised its subsidiary, UGL, has won several power contract extensions involving maintenance and outage works.

The engineering company will deliver services across Western Australia, South Australia, and New South Wales.

It’s estimated that the entire value of the contracts secured will generate around $110 million in revenue for the company.

Furthermore, Cimic noted that all of the contracts signed are effective from early 2021.

Management commentary

Cimic group executive chair and CEO Juan Santamaria touched on its services specialist business UGL, saying:

UGL has a history of delivering value to the Australian energy industry and we’re proud to continue to do so by offering maintenance and shutdown services to these long-standing clients.

Commenting on Mr Santamaria’s speech, UGL managing director Doug Moss went on to add:

These contract extensions are a testament to the adaptability and trust we share with our clients. We are proud of our ability to provide a safe and reliable service and we look forward to building on our relationships in 2021 and beyond.

Cimic share price snapshot

The Cimic share price has been on a bit of a rollercoaster since the beginning of last year. A major catalyst for its wild share price swings has been the severe impact of COVID-19 on the construction industry.

Shares in the engineering company reached a 52-week high of $28.72 last February. Soon after, Cimic shares took an extreme dip to a low of $11.87 during the March crash. While the company’s shares rebounded to around the mid-$20’s mark over the past few months, yesterday’s full-year results release shook investor expectations.

Based on the current Cimic share price, the company commands a market capitalisation of roughly $6.7 billion.

More reading

• Why CIMIC, Crown, Domino’s, & Praemium shares are tumbling lower today
• ASX 200 up 0.35%: CBA half year update, IAG impresses, Zip shoots higher
• Why the Cimic (ASX:CIM) share price is plunging 16%
• Goldman Sachs says sell Premier Investments (ASX:PMV) shares into today’s big rally

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

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If you’re currently searching for a couple of tech shares to add to your portfolio, then you might want to check out the ones listed below.

Here’s why these ASX tech shares come highly rated right now:

Adore Beauty Group Limited (ASX: ABY)

The first ASX tech share to look at is Adore Beauty. It is Australia’s number one pureplay online beauty retailer. Its aims to deliver users an empowering and engaging beauty shopping experience personalised to their needs.

Management notes that education and entertainment are core elements of Adore Beauty’s offering. As a result, its platform is a destination for beauty consumers even when they are not seeking to purchase items.

The company’s aspiration is to transform the beauty shopping experience and drive online penetration in order to own the beauty category in Australia and New Zealand. Furthermore, it wants to be the pre-eminent online destination for a broad selection of premium beauty, wellness, personal care products across skin, hair, make up, accessories and close adjacencies.

It certainly is going the right way about this. At the last count, the company had almost 600,000 active customers and was expecting to generate revenue of $158.2 million from them in calendar year 2020.

Morgan Stanley is a fan of the company and has an overweight rating and $8.35 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX tech share to look at is app maker Life360. The San Francisco-based company provides families with a market leading app with a wide range of features.

These include real-time location sharing and notifications and driving safety features like Crash Detection and Roadside Assistance. Ultimately, the company aims to create tools that remove uncertainty from modern life, so families can feel free, together.

At the last count, the company had more than 25 million monthly active users (MAU) across 195 countries.

One broker that is very positive on Life360 is Bell Potter. In fact, it was the broker’s top pick in the tech sector for 2021. Its analysts currently have a buy rating and $7.70 price target on its shares.

Bell Potter notes that the company is carving out a significant global footprint with its family app at the core. The broker also believes it will benefit greatly once the pandemic passes and people are on the move again.

More reading

• ASX retail shares show strong signs of resurgence 
• 3 outstanding ASX shares growing rapidly
• 5 of the best ASX shares to buy in February
• 2 exciting mid cap ASX shares to buy and hold
• 2 quality ASX tech shares you can 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Some ASX blue chip shares are demonstrating reliable performance during these uncertain times.

Here are three to consider:

Macquarie Group Ltd (ASX: MQG)

The global investment bank recently released its profit update for the third quarter of its FY21. It said that trading conditions have improved across the company.

Macquarie’s ‘annuity-style businesses’, called Macquarie Asset Management (MAM) and banking and financial services (BFS), experienced a profit increase in the third quarter compared to the prior corresponding period.

These defensive businesses reported that net profit for the nine months from MAM and BFS was largely flat with the prior corresponding period because of base and performance fees being in line with last year, partially offset by BFS margin pressure, increased credit impairment charges and higher costs to support clients through COVID-19.

Meanwhile, the market-facing businesses of commodities and global markets (CGM) and Macquarie capital experienced a significant increase in net profit in the third quarter. The profit for the nine months to 31 December 2020 was broadly in line with the prior corresponding period. There was stronger activity across most CGM businesses, offset by lower fee revenue and principal income in Macquarie Capital.

The ASX blue chip share is expecting FY21 net profit to be almost as high as the FY20 profit. Management are confident about medium-term growth potential.

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.

In FY20 the ASX blue chip share reported that total revenue increased by 4.8% to $2.13 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) grew 5.1% to $1.65 billion, operating cashflow went up 8.3% to $1.1 billion and net profit after tax (NPAT) grew by 10.1% to $317.1 million. APA decided to increase the FY20 distribution by 6.4% to 50 cents.

After announcing some recent new investments, such as a new pipeline in WA to connect to its existing network, APA decided to increase its interim FY21 distribution by 4.3% to 23 cents. The ASX share funds its annual distributions from the operating cashflow that it generates.

The new WA pipeline that I mentioned is a $460 million investment to build a 580km pipeline to connect emerging gas fields in the Perth Basin to the resource rich Goldfields region, forming an interconnected WA gas grid.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the world’s largest pathology businesses with operations in Europe, Australia and North America.

The ASX blue chip share is playing a key role in the fight against COVID-19 as it’s doing countless tests. The northern hemisphere, where Sonic has a major presence, is having a difficult winter with the pandemic.

The company’s base laboratory business revenue (excluding COVID-19 testing) is up on prior levels in most countries, with negative but improving growth in the USA and UK. The COVID-19 testing revenue that it’s generating is extra revenue on top of that.

Sonic Healthcare said that its revenue was up 29% in the first quarter of FY21 to $2.1 billion and its EBITDA was up 71% to $580 million.

At the annual general meeting (AGM), Sonic said that its October 2020 revenue was 33% higher than October 2019.

More reading

• Top brokers name 3 ASX shares to buy today
• ASX 200 drops 0.9%, Crown not suitable for Sydney casino, Macquarie rises
• ASX 200 down 0.4%: Macquarie impresses, Challenger disappoints, & Suncorp rises
• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher
• Here’s why the Macquarie (ASX:MQG) share price is surging 7% higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of APA Group. 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.

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If you’re a growth investor, then you’re in luck. The Australian share market is home to a good number of shares that are growing at a strong rate.

Two exciting ASX growth shares to consider buying are listed below. Here’s what you need to know about them:

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides innovative human resources, payroll, and rostering technology to over 1,400 businesses across the APAC region.

Management notes that its solutions are at the forefront of a disruptive technology industry, driven by the transition of organisations towards online systems which automate processes and aggregate information in new and intelligent ways.

The company has also been strengthening its offering (and cross-selling opportunities) through the acquisition of complementary business. This includes through the acquisitions of Webexpenses for 13 million pounds and Breathe for $32 million.

Morgan Stanley is a fan of the company and currently has an overweight rating and $9.70 price target on its shares.

Nuix Limited (ASX: NXL)

Nuix is a leading provider of investigative analytics and intelligence software. It specialises in transforming massive amounts of messy data from emails, social media, communications, and other human-generated content into actionable intelligence.

The company’s investigative analytics and intelligence software can help users understand the context and connections across billions of items of data. They can search it, filter it, visualise it, analyse it, and find the truth it holds.

Its software has been used in a number of important investigations. This includes the Panama Papers and the Banking Royal Commission.

Demand has been strong for its services and led to Nuix reporting a 25.9% increase in total revenue to $175.9 million in FY 2020. This revenue is largely from subscriptions, with subscription revenues now accounting for 88.7% of its total revenue.

Analysts at Morgan Stanley are also very positive on Nuix. They currently have an overweight rating and $11.00 price target on the company’s shares.

More reading

• 3 outstanding ASX shares growing rapidly
• 2 quality SaaS ASX shares to buy in February 2021
• 2 ASX shares that this fundie really likes right now
• Forget GameStop and buy these fantastic ASX growth shares
• Brace for an IPO resurgence as new floats beat the ASX 200 by ~50%

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 Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Elmo Software and Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Fortunately for income investors in this low interest rate environment, there are a good number of dividend shares on the Australian share market with attractive yields.

Two ASX dividend shares to consider buying are listed below. Here’s what you need to know about them:

Fortescue Metals Group Limited (ASX: FMG)

At present, the spot iron ore price is trading around the US$160 per tonne mark. As a comparison, Fortescue’s C1 costs are approximately US$12.74 per wet metric tonne.

It doesn’t take a rocket scientist to see that this is leading to material free cash flow generation by the mining giant. And with the company’s balance sheet is such good health, the majority of this free cash flow is likely to be returned to shareholders through dividends.

One broker that is forecasting bumper dividends from Fortescue is Macquarie. It expects the company to reward shareholders with a fully franked interim dividend of $1.37 per share. Based on the current Fortescue share price, this interim dividend alone represents a yield of 5.8%.

For the full year, the broker estimates that its shares offer an 8.6% yield. They also see upside for its shares and have an outperform rating and $26.50 price target on them.

Wesfarmers Ltd (ASX: WES)

This conglomerate has been a very positive performer over the last 12 months. This has been driven partly by its key Bunnings business, which has been experiencing strong sales growth during the pandemic. The hardware giant has been benefiting from government stimulus and consumers redirecting their spending from holidays to home improvements.

The good news is that Bunnings continues to perform well and recently reported stellar sales growth. This was supported by strong growth across other businesses such as Kmart, Target, and Catch.

Macquarie is positive on Wesfarmers as well and recently upgraded its shares to an outperform rating with a $60.00 price target. Its analysts are forecasting a 150.3 cents per share fully franked dividend in FY 2021. Based on the current Wesfarmers share price, this represents a 2.7% yield.

More reading

• How big will the ASX bank dividends be in 2021 and beyond?
• Top brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• 2 super ASX 200 shares to buy for your retirement portfolio
• Why ASX miners will get a double tailwind from Biden’s US$1.9tn stimulus

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

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A few small cap ASX shares have been generating quick revenue growth over the last few months.

Smaller businesses may be able to generate more returns because they are starting from a smaller size, whereas blue chips have already done a lot of their growing.

Here are two to consider:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara says that it’s a health technology company, its clinical functions are used for screening clinics to provide feedback on breast density, compression, dose and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement and patient tracking.

In its quarterly update for the three months to 31 December 2020 it revealed that its annual recurring revenue (ARR) increased by 20% compared to the prior corresponding period, up to NZ$20.7 million. There was rising demand for the Volpara breast health platform.

The small cap ASX share received quarterly cash receipts of NZ$4.6 million, which Volpara said was strong despite COVID-19 and the weak US dollar. Its churn was low and at that point it covered approximately 27% of women in the US. Average revenue per user (ARPU) grew 5% to US$1.22, up 5% from the second quarter of FY21.

Volpara CEO Dr Ralph Highnam said: “Our ability to identify women at high cancer risk who should have genetics testing has potential to be a game-changer and significantly increase our ARPU. Over the next few quarters, our focus will be on ramping up these genetics relationships and connections as quickly as we can.”

A few days after that quarterly announcement, the small cap ASX share announced that it was acquiring breast cancer risk assessment company CRA Health, which is based in Boston.

Volpara said that CRA Health is profitable, with ARR of over US$4 million, ARPU of around US$1.70 and coverage of around 6% of US breast screenings.

After the acquisition is complete, Volpara will have ARR of around US$17.5 million and at least one product in use in over 30% of breast screenings.

Regarding this acquisition, Dr Highnam said: “The acquisition of CRA is very significant for Volpara. CRA is a leading provider of risk assessment tools within major EHR systems and has integrations already built with the main genetics companies.”

Bubs Australia Ltd (ASX: BUB)

Bubs says that it’s a business that makes a range of premium Australian infant nutrition and goat dairy products. It has Bubs goat milk infant formula and Bubs organic grass-fed cow milk formula, along with organic baby food, cereals, toddler snacks and Vita Bubs (a range of vitamin and mineral supplements).

Whilst Bubs had a difficult first quarter of FY21, sales have rebounded significantly in the second quarter. A couple of weeks ago it revealed that group quarterly gross revenue was up 36% compared to the first quarter of FY21, to $12.8 million. However, total revenue was still down 12% on the prior year.

The small cap ASX share said that export sales to markets outside of China continue to strengthen, with sales up 194% quarter on quarter. The first shipments of Bubs infant formula and Bubs organic baby food were exported to Malaysia during the second quarter. It has signed with e-commerce platforms in the Asia region recently, including Redmart in Singapore and Lazada in Malaysia.

The corporate daigou trade is still lower than pre-COVID-19 levels, but it was up 122% compared to the first quarter of FY21.

The company boasted that it is the fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales at the checkout up 41% quarter on quarter.

Bubs infant nutrition sales in the second quarter were up 27% compared to the first quarter. Adult goat dairy revenue was up 45% quarter on quarter and China cross border e-commerce (CBEC) sales were up 45% quarter on quarter.

More reading

• Got cash to invest? Here are 3 ASX shares to buy
• Leading brokers name 3 ASX shares to sell today
• Got money to invest? Here are 2 ASX shares to buy
• 2 growing small cap ASX shares to buy
• Why AGL, Bubs, BWP, & Origin shares are dropping lower

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 VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended BUBS AUST FPO and VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX shares that a number of brokers like and have rated as ‘buys’

It can be quite hard to find good businesses that are trading at a good price. One investor might say that BHP Group Ltd (ASX: BHP) is a good buy, whilst another might say that Woolworths Group Ltd (ASX: WOW) is the share to buy.

Brokers are constantly looking at businesses and share prices, thinking about what would be a good investment. There are various brokers out there like Bell Potter, Macquarie Group Ltd (ASX: MQG) and UBS that provide different recommendations about shares.  

With that in mind, these ASX shares are liked by more than one broker. Of course, this still isn’t a guarantee of success – they could all be herding together.

FINEOS Corporation Holdings PLC (ASX: FCL)

FINEOS is an ASX share liked by at least three brokers at the moment, including UBS which likes the tech company for the long-term growth opportunity.

This business says that it’s a global player in the software space for the employee benefits and life, accident and health industry.

FINEOS operates a platform which has technology for a number of different areas for clients like new business, claims, policy, billing and absence. Its software is designed to manage the structure and relationships of group and individual insurance processing to optimise plan, coverage and data management, operational processing, and business intelligence.

The company is aiming to increase its market share over time. For the quarter ending 31 December 2020, FINEOS generated 69% growth of its cash receipts to €28.2 million.

City Chic Collective Ltd (ASX: CCX)

City Chic is an ASX share that’s liked by at least three brokers, including Morgan Stanley.

It’s a retailer of plus-size clothes, footwear and accessories for women. It operates through a number of different brands including Avenue, Evans, CCX, Hips & Curves and Fox & Royal.

This business isn’t just a bricks and mortar operator in Australia and New Zealand. It’s currently selling around 70% of its products online, with more than 40% of revenue being generated in the northern hemisphere.

City Chic recently acquired Evans in the UK. It’s not taking over the retail store chain, but it is acquiring the online assets and the wholesale business. Those two segments generated £26 million of sales for the 12 months to August 2020. City Chic said that the retail store network had been shrinking in recent years as more customers transition to the digital channel. Evans bought this business for $41 million, funded from existing cash.

City Chic says that this acquisition will give the company a platform to launch in the $9 billion UK market. It’s also confident that it can use its lean, customer-centric operating model to drive revenue growth and cost efficiencies in the existing business.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX share that’s liked by at least three brokers, including UBS.

The broker thinks that the housing industry has good growth potential in 2021 as long as there aren’t any rate hikes or credit lending restrictions.

Brickworks has several different segments that serve the construction industry in Australia. It manufactures and sells bricks, paving, roofing, masonry, cement and precast.

The company also has its joint venture industrial property trust with Goodman Group (ASX: GMG) which is expected to increase in value significantly once the large warehouses for both Amazon and Coles Group Ltd (ASX: COL) are completed. The gross value of the trust’s assets are expected to be higher than $3 billion once completed, which is also expected to lead to a 25% increase in the net rental profit distributions to Brickworks.

More reading

• 3 ASX dividend shares with higher yields
• 3 ASX shares rated as strong buys by brokers
• 2 ASX shares to own according to fund managers
• 2 ASX dividend shares with yields above 4%
• 3 compelling ASX shares rated as buys by brokers

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia owns shares of and has recommended Brickworks and Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended FINEOS Holdings plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index climbed 0.5% to 6,856.9 points.

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

ASX 200 futures pointing lower

It looks set to be a tough day for the Australian share market on Thursday. According to the latest SPI futures, the benchmark index is expected to open the day 0.5% or 32 points lower this morning. This follows a poor night of trade on Wall Street, which in late trade sees the Dow Jones up 0.05%, the S&P 500 down 0.1%, and the Nasdaq down 0.25%.

Telstra half year update

The Telstra Corporation Ltd (ASX: TLS) share price will be on watch today when it releases its half year results. According to a note out of Goldman Sachs, it expects Telstra to report an 8% decline in revenue to $12,318 million and a 15% decline EBITDA to $3,971 million. Despite this, the broker is forecasting the Telstra board to maintain its fully franked 8 cents per share interim dividend.

Oil prices continue to rise

Energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a positive day after oil prices pushed higher once again. According to Bloomberg, the WTI crude oil price is up 0.5% to US$58.64 a barrel and the Brent crude oil price has climbed 0.6% higher to US$61.45 a barrel. Oil has now had its longest rally in two years amid hopes that vaccines will lift demand.

ASX Ltd update

The ASX Ltd (ASX: ASX) share price will be one to watch today when it hands in its half year results. According to Morgans, it expects the stock exchange operator to report a net profit after tax of $240 million. From this, the broker is expecting the ASX board to declare an interim dividend of $1.11 per share. This follows a mixed half which is believed to have been weighed down by weaker Futures volumes.

Gold price edges higher

It could be a positive day for gold miners such as Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) after the gold price edged higher again. According to CNBC, the spot gold price is up 0.3% to US$1,843.10 an ounce. This was driven by further US dollar weakness and stimulus optimism. Newcrest is also releasing its half year results this morning.

More reading

• 2 ASX 200 shares to buy for growth
• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney
• Nasdaq at record high! Here’s what it means for the ASX 200
• Here’s what low interest rates really means for your cash
• ASX 200 up 0.35%: CBA half year update, IAG impresses, Zip shoots higher

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

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If you’re interested in adding some exposure to the small side of the market to your portfolio then you might want to take a look at the shares listed below.

Here’s why these ASX small caps have been tipped as buys:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is Bigtincan. It is an artificial intelligence-powered sales enablement automation platform provider. The company’s platform is being used by a growing number of blue chips, this includes 7 of the top 10 companies on the Fortune 500.

Last month Bigtincan released its second quarter update and revealed strong recurring revenue growth once again. According to the release, the company’s annualised recurring revenue (ARR) reached $48.4 million at the end of December. This represents an increase of 50% over the prior corresponding period.

Pleasingly, although the company has made some acquisitions, the majority of its growth was organic. Management advised that organic ARR came in at $40 million, which was up 42.9% on the prior corresponding period. ARR from acquisitions totalled $8.4 million.

Analysts at Morgan Stanley were impressed with its update. They initiated coverage on the company’s shares with an overweight rating and $1.40 price target. The broker believes the company is well-positioned for growth thanks to its leadership position in a growing market.

Universal Store Holdings Limited (ASX: UNI)

Another small cap ASX share to look at is Universal Store. It is a leading fashion retailer with a strategy of delivering a frequently changing and carefully curated selection of on-trend products to a target 16-35 year old fashion focused customer.

As with Bigtincan, it recently released a trading update which revealed very strong growth so far in FY 2021.

According to the release, Universal Store expects its underlying earnings before interest and tax (EBIT) to be in a range of $30 million to $31 million for the first half. This represents growth of between 61% and 67% on the prior corresponding period. This was driven by strong like for like sales growth and gross margin improvements.

This update went down well with Morgans. In response to the update, the broker put an add rating and $6.93 price target on its shares. It believes Universal Store is well-placed to grow its earnings at a 30% compound annual growth rate through to FY 2023.

More reading

• 3 fast-growing small cap ASX shares to watch
• 2 ASX growth shares to buy right now
• 2 explosive ASX growth shares to buy immediately
• Leading brokers name 3 ASX shares to buy today
• 3 very impressive ASX quarterly updates from last week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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