In this article are four small cap ASX dividend shares with large yields.

Small caps are businesses that are smaller than many well-known companies. The definition of a small cap normally means having a market capitalisation of less than $1 billion.

Here are four examples of businesses that are relatively small, but have a large dividend yield:

Pacific Current Group Ltd (ASX: PAC)

This is a business that takes strategic stakes in fund managers and tries to help them grow with the expertise it has gained.

In FY20 the small cap ASX share increased its dividend by 40% to $0.35 per share, which was supported by an increase of underlying earnings per share (EPS) growth of 18% to $0.44 per share. That means at the current Pacific Current share price it has a trailing grossed-up dividend yield of 8%.

Its funds under management (FUM), which is a driver of earnings, grew by 14% to $106.4 billion in the first quarter of FY21 for the three months to 30 September 2020.

360 Capital REIT (ASX: TOT)

This is a fund of diversified assets across real estate equity, debt and real estate based operating businesses with a history of quarterly distributions. It has access to real estate based investment opportunities available through its manager 360 Capital Group Ltd (ASX: TGP).

360 Capital REIT said it has commenced deploying its cash reserves again after holding cash during the COVID-19 period. 

The small cap ASX share had a net tangible asset backing of $1.13 per security at 30 June 2020, so the current 360 Capital REIT share price is at a 24% discount to this value. It is currently undertaking an on-market buyback.

For the first quarter of FY21 it declared a 1.5 cents per unit distribution, which equates to a yield of around 7% at the current share price.

It said in a recent update that it is well positioned to take advantage of market volatility arising from a tapering of government stimulus and ending of the moratorium on interest payments.

Tassal Group Limited (ASX: TGR)

Tassal is the biggest fish business in Australia. It has large salmon farming operations and it also has a growing prawn division after some acquisitions.

In FY20 the small cap ASX share grew operating net profit by 13.4% to $64.2 million and operating earnings before interest and tax (EBIT) went up 9.8% to $99.8 million. That supported the dividend being maintained during the COVID-19 period. In FY20 it paid a dividend of 18 cents per share. At the current Tassal share price, that equates to a partially franked dividend yield of around 5%.

The fish business recently announced the acquisition of Billy Creek, a property with around 1,300 hectares that is next to its Proserpine prawn farm. The combination of these two properties provides the opportunities for an additional (approximately) 350 hectares of ponds, supporting a total of around 800 hectares of ponds across the wider precinct. The proximity to the Bruce Highway provides ready power availability as well as existing road infrastructure.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the largest furniture businesses on the ASX, but it’s still a small cap ASX share.

In FY20 it increased its final dividend by 12.5%, bringing the full year dividend to 47.5 cents per share. At the current Nick Scali share price that represents a grossed-up dividend yield of 7.7%.

Its net profit was flat in the last financial year. However, it’s expecting higher growth in the first half of FY21. Total sales orders for the first three months of FY21 have been up 45% on the previous year. Excluding Melbourne and Auckland, comparable store sales orders grew by 59% in the first quarter.

Online orders have increased by 47% for the first quarter of FY21 compared to the last quarter of FY20 and the company now expects the EBIT contribution from online in FY21 to be higher than previously anticipated. It’s expecting first half net profit to be 70% to 80% more than the first half of FY20.

More reading

• These are the 10 most shorted shares on the ASX
• Brokers name 3 ASX shares to buy right now
• 360 Capital (ASX:TGP) share price edges higher on earnings forecast
• 3 ASX shares with large dividend yields
• 3 ASX dividend shares with large and growing dividends

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

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On Tuesday the Reserve Bank of Australia met to discuss the cash rate. As was widely expected, the central bank kept rates on hold at the record low of 0.1%.

But this may not be the case for long, with the latest cash rate futures now pointing to a 65% probability of a rate cut at its next meeting in February 2021. 

This would be another blow for income investors, who will have to contend with even lower rates next year.

But never fear, the Australian share market and its countless dividend shares are here to save the day.

Two ASX dividend shares that could solve your income needs are listed below. Here’s why they have been given buy ratings:

Aventus Group (ASX: AVN)

Aventus is the owner and operator of large format retail parks across Australia. Among its tenant base it counts a wide range of major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. Having such quality retailers filling its centres has been a huge positive in 2020. At a time when many retail landlords have struggled to collect rent, Aventus has collected its rent largely as normal and been able to reward shareholders with generous dividends.

Analysts at Goldman Sachs expect this to be the case again in FY 2021. They currently have a buy rating and $2.76 price target on its shares. They are also forecasting a forward 6% dividend yield for investors.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. It is best-known for its Sonata wealth management platform, but also has a number of other quality products supporting its growth. This includes the Rufus transfer agency solution, the Midwinter financial planning solution, and the recently acquired Delta Financial Systems.

And while FY 2021 is going to be difficult due to COVID headwinds, Goldman Sachs thinks investors should stick with the company due to its strong long term growth potential. Its analysts have a buy rating and $5.00 price target on its shares. They are also forecasting a ~10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.

More reading

• Leading brokers name 3 ASX shares to buy today
• 3 ASX dividend shares with 5%+ yields to buy today
• 2 ASX dividend shares to buy next week
• Why Beach, Bravura, Flight Centre, & Treasury Wine shares are dropping lower
• 2 ASX dividend shares with 6%+ yields to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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A new month is here, so what better time to look to see if there are any additions you could make to your portfolio to take it to the next level.

If you’re interested in the tech sector, then you might want to take a look at the shares listed below.

Here’s why they have been rated as buys:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of sales enablement software which provides businesses with the information, content, and tools to sell more effectively. Demand for its platform has been growing strongly in recent years and even during the pandemic. This led to it recording strong recurring revenue growth in FY 2020 and guiding to more of the same in FY 2021.

In fact, the new financial year has started strongly and led to management recently reiterating its annualised recurring revenue (ARR) guidance. It is expecting ARR in the range of $49 million to $53 million in FY 2021, which represents a 37% to 48% increase year on year.

One broker that has been pleased with its positive start to the financial year is Canaccord Genuity. It was pleased with its update and put a buy rating and $1.40 price target on its shares.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a donor management and community engagement provider to the church market. Thanks to the quality of its platform, its leadership position, and the shift to a cashless society, it has been growing at a very strong rate. For example, last month the company released its half year results and revealed a 53% increase in operating revenue to US$85.6 million and an even more impressive 177% jump in EBITDAF to US$26.7 million.

Management appears confident its growth can continue thanks to positive tailwinds it is experiencing. This should be boosted by the recent launch of ChurchStaq. It is the combination of its Pushpay and Church Community Builder software, bringing together digital giving, donor development, church apps, and ChMS to deliver a fully integrated engagement platform.

Pushpay’s strong form has caught the eye of analysts at Goldman Sachs. They have a conviction buy rating and $10.35 price target (now $2.59 after its 4-1 share split). This compares to the current Pushpay share price of $1.81.

More reading

• 4 ASX growth shares to buy in December
• 2 rapidly-growing small cap ASX shares to buy
• 10 fantastic ASX shares to buy in December
• 4 great ASX growth shares to buy
• 2 ASX shares delivering explosive growth in FY 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended BIGTINCAN FPO and PUSHPAY FPO NZX. 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) bounced back strongly and recorded an impressive gain. The benchmark index rose 1.1% to 6,588.5 points.

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

ASX 200 expected to storm higher.

The Australian share market looks set to storm higher on Wednesday after a positive night on global markets. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.75% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.95%, the S&P 500 is up 1.45%, and the Nasdaq has jumped 1.6%.

Tech shares on watch.

It looks set to be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Wednesday. They have a tendency to follow the lead of their U.S. counterparts, which are surging higher on the tech-focused Nasdaq index at the time of writing.

Gold price jumps.

It could also be a very good day for gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). This follows an exceptionally strong night of trade for the precious metal. According to CNBC, the spot gold price is up 2.1% to US$1,818.50 an ounce. This was driven by U.S. dollar weakness caused by the announcement of a COVID stimulus package.

Oil prices sink lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a tough day after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 1.9% to US$44.48 a barrel and the Brent crude oil price has dropped 1.1% to US$47.35 a barrel. News that OPEC is delaying production cut talks is weighing on prices.

Westpac rated as a buy.

Goldman Sachs has retained its buy rating on the Westpac Banking Corp (ASX: WBC) share price following its update on APRA’s investigation into its risk governance. The broker notes that its price target of $20.34 takes into account regulatory uncertainty, hence no changes are being made today. Goldman is also forecasting a 4.8% dividend yield in FY 2021.

More reading

• ASX 200 rises on Tuesday
• Westpac (ASX:WBC) share price gaining ground despite slap by regulator
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

In a press release Saturday, Shopify Inc (NYSE: SHOP) announced that merchants using its e-commerce platform achieved record global sales of $2.4 billion on Black Friday alone. This represented an increase of 75% over 2019. 

More than 1 million merchants in 175 countries helped boost the digital sales watermark, with the festivities beginning in New Zealand and continuing around the world. By 8 a.m. EST on Friday, Shopify had already achieved $1 billion in sales.

Shopify also released other metrics to illustrate the early success of its holiday shopping season. The average Black Friday shopping cart totaled $90.70, an increase of 11% compared to the year-ago period. With more people shopping from home due to the pandemic, mobile sales edged lower to 67%, down from 69% in the prior-year period. At the same time, desktop sales climbed to 33%, up from 31%.

This underpins other data that suggested more consumers have pivoted to shopping online in the face of the pandemic. A report from Adobe Inc (NASDAQ: ADBE) Analytics found that online spending during Black Friday jumped nearly 22%, according to a report by CNBC. 

At the same time, preliminary figures showed that retail-store traffic dropped to abysmal levels, down roughly 52% compared to 2019, according to data released by Sensormatic Solutions. The report found that traffic levels were also down for the period beginning on Sunday, Nov. 22, and ending on Black Friday, sliding 45%. The report suggested that fewer in-store doorbuster sales and store closures on Thanksgiving, as well as the increasing adoption of e-commerce, contributed to the decline.

In 2019, Shopify reported sales of $2.9 billion on its platform between Black Friday and Cyber Monday, an increase of 61% over the prior-year period. Investors should stay tuned as Shopify appears poised to demolish the sales records it set just last year. 

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

More reading

• Forget eBay, Shopify is a better e-commerce stock

Danny Vena owns shares of Adobe Systems and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Adobe Systems and Shopify. The Motley Fool Australia has recommended Adobe Systems. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Joe Biden’s US presidential election victory has brought renewable energy back into the spotlight. Biden has pledged that on his first day in office he will bring the US back into the Paris Climate Agreement and restore a number of environment protections that the Trump administration has revoked. His energy plan proposes an investment of US$1.7 trillion over 10 years to promote a portfolio of clean energy technologies. 

There isn’t much of a selection when it comes to large cap ASX renewable energy stocks. The large ASX energy producers like Origin Energy Ltd (ASX: ORG) and AGL Energy Ltd (ASX: AGL) utilise both ‘dirty’ and renewable sources to produce power. 

However, the smaller end of town contains ASX renewable energy stocks that are much more aligned with creating sustainable, clean energy. 

New Energy Solar Ltd (ASX: NEW)

New Energy Solar focuses on solar power generation with a number of assets across Australia and the US. Its shares have slumped 37% year-to-date to just 86 cents with a market capitalisation of $320 million. 

The company intends on selling its Australian assets to provide investors with pure exposure to the strong US growth market. 

The company’s website hints at its future intentions, stating it also intends to “invest in other renewable energy assets including wind, geothermal, hydro-electricity, hybrid solutions and associated investments such as battery and other storage, smart metering and other potential future technologies.” 

Genex Power Ltd (ASX: GNX) 

Genex owns two operational solar projects in Queensland with a number of assets under development. The company is currently developing an abandoned Queensland gold mine as a hydro renewable energy generating and storage project. 

The Genex share price currently sits at 18 cents, down more than 17% year-to-date. The company has yet to turn a profit but in FY20 generated $12.3 million revenue. 

ClearVue Technologies Ltd (ASX: CPV)

ClearVue’s patented technology allows visible light to pass through a pane of glass, while the invisible wavelengths of light are deflected to the edges of the glass where they are converted into electricity. 

Its technology has broad applications ranging from commercial buildings through to greenhouses. ClearVue has achieved a number of commercial and showcase projects. This includes the construction of a greenhouse Murdoch University in Western Australia and the installation of its glass at a villa for Jinmao Green Building Technology Co Ltd. The company has commenced negotiations with Jinmao Green Building for a formal agreement to be put in place following a letter of intent. 

In a recent investor presentation, the company indicated it anticipates that regulatory support across multiple jurisdictions and the change in government in the US will positively impact its growth. 

More reading

• The New Energy Solar (ASX:NEW) share price jumped 12% higher this week

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

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The Strategic Elements Ltd (ASX: SOR) share price rocketed today, closing the day 9% higher at 18 cents per share. This comes following the company’s announcement of a successful scale up of its self-charging battery technology.

Today’s gains see Strategic Element’s share price up 125% year-to-date, and up 500% from the post-COVID sell-off lows on 24 March.

By comparison the All Ordinaries Index (ASX: XAO) is up 0.2% for the year, and up 43% since 24 March.

What does Strategic Elements do?

Strategic Elements is involved in numerous innovative projects, including the self-charging battery technology that led to today’s share price leap. The company operates as a venture builder, generating projects by combining teams of leading scientists or innovators in the technology and resources sectors.

Strategic Elements operates as a registered Pooled Development Fund (PDF). Notably, investors in Strategic Elements do not pay capital gains taxes, as a compensation for the added risk of investing in small and medium sized companies under the Federal Government PDF program.

What moved the Strategic Elements share price today?

This morning Strategic Elements announced its self-charging battery technology project had achieved a critical milestone.

The company revealed it had manufactured a 1 litre batch size of Battery Ink – enough to produce 2,000 battery cells. The results reveal the potential to scale up the technology, with capacity having rapidly increased 10-fold from the previous 200 battery cells.

Strategic Elements reported 5 Battery Ink cells were fabricated from the scaled-up ink. Those cells successfully harvested energy from humidity in the air to generate at least 0.8 volts for a 2-hour testing period. Recharging time was just 3 minutes, and the battery cells were only 1 centimetre in size and thinner than a human hair. Additionally, the performance matched that of the smaller 200 millilitre batch size ink.

The battery technology is a liquid ink based on graphene oxide. It can generate energy from the humidity in the air or from your skin to self-charge. The technology is being developed together with the University of New South Wales and CSIRO.

Looking ahead, the company stated the next key milestone for the technology will be to fabricate a prototype battery pack with multiple connected Battery Ink cells producing 3.7 volts. It expects that stage to be complete in January 2021.

When those results are released, the Strategic Elements’ share price will again be on watch.

More reading

• Why the Althea (ASX:AGH) share price soared 6% today
• ASX 200 rises on Tuesday
• ASX stock of the day: Sensen Networks (ASX:SNS) rockets 27%
• Why the Xero (ASX:XRO) share price zoomed 20% higher in November
• Westpac (ASX:WBC) share price gaining ground despite slap by regulator

Motley Fool contributor Bernd Struben 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 Althea Group Holdings Ltd (ASX: AGH) share price stormed higher today after the company announced it will be manufacturing US Cannabis brand Tinley’s products in Canada. Shares in the small cap closed today’s trade 6.19% higher at a price of 52 cents.

The news continues what has been a strong year for the company, which has seen its share price rise by more than 32%. For comparison, in the same period the All Ordinaries Index (ASX: XAO) has risen by 0.29%.

What Althea does

Althea is an Australian licensed supplier and exporter of pharmaceutical grade, medicinal cannabis. The company offers a range of products, education, and other services to support patients and healthcare professionals in navigating medicinal cannabis treatment pathways.

The group currently operates within select, highly regulated medicinal cannabis markets, which include Australia and the United Kingdom. However the company has plans to expand into Europe and emerging markets throughout Asia.

What happened

Althea announced a deal for one of its subsidiaries, Peak, to be used as the exclusive manufacturer of Tinley’s.

Tinley’s is a leading cannabis beverage brand in the United States and the company itself is listed on the Canadian Securities Exchange.

Under the agreement, Peak holds exclusivity for the manufacture and distribution of three Tinley’s products in Canada until Tinley’s meets minimum quantities. An initial order representing more than CA$100,000 in revenue for Peak is planned for delivery in the first quarter of 2021. The agreement is for an initial 3-year period.

What now

Shareholders were clearly pleased with the deal as the Althea share price stormed higher today.

This sentiment was shared by Althea’s CEO Joshua Fegan,  who said:

The agreement with Tinley’s is yet another key milestone for Peak and immediately follows the Company announcing an increase in its forecasted revenue of up to CAD$4.65M, over the next 12 months. With Peak having successfully obtained its Standard Processing Licence from Health Canada in only September 2020, the team has been quick to further ramp up business development. The addition of the Tinley’s Agreement to Peak’s growing list of contracts increases our 12 months expected revenue yet again and keeps the Company well on track to deliver on our revenue objectives in the short, medium and long term.

More reading

• Why the Althea (ASX:AGH) share price is climbing higher today
• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Althea (ASX:AGH) share price on watch following 2 new agreements
• ASX stock of the day: Elixinol Global (ASX:EXL) shares blaze new highs

Motley Fool contributor Daniel Ewing 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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