The Qantas Airways Limited (ASX: QAN) share price has had a tough year. Shares in the Aussie airline are down 43.6% to $4.04 per share as of yesterday’s close.

Clearly, the travel industry is one of the hardest hit by the coronavirus pandemic and subsequent restrictions. I’d consider travel alongside the likes of entertainment, energy and hospitality in terms of those doing it tough.

So, the Qantas share price is clearly under pressure. But despite some short-term challenges, is now the time to pickup Qantas shares for a bargain?

Why the Qantas share price could be cheap

For one thing, I think there is implicit government support for the Aussie airline. I can’t see the Federal Government letting Qantas fold given its proud history and the effective duopoly in the Aussie travel market.

Of course, everyone thought much the same with Ansett. But times have changed and the impacts of COVID-19 won’t last forever. I think there is strong implicit support to get Qantas through to the other side of this.

That all combines to help the Qantas share price and the risk-return characteristics. On top of that, I think the company is proactively managing its balance sheet with careful capital management.

That includes the airline parking much of its fleet in the Mojave Desert and looking to move its headquarters out of Sydney. 

Cost cutting is key right now given the limited cash coming in the door. The group announced a $1.9 billion equity raising in June to help strengthen its balance sheet and accelerate its recovery from the pandemic.

All of this tells me that the Qantas share price could have a lot of upside with carefully managed downside. No one can predict the future, but I think there is a clear strategy to manage the airline out of this crisis over a 3-year span.

Foolish takeway

It’s hard to look at the Qantas share price as a bargain based on short-term returns. However, I think the airline can return to its former glory as a leading carrier and strong ASX dividend share in the medium to long-term.

It’s certainly a punt in the current climate, and perhaps I’d wait until the economic picture is more clear in early 2021, but Qantas could be a bargain for $4.04 per share.

More reading

• Is now the time to be buying ASX travel shares? 
• Qantas (ASX:QAN) considers leaving Sydney
• Why the Qantas (ASX:QAN) share price is sinking lower today
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• How to build a recession-beating ASX share portfolio

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 Openpay Group Ltd (ASX: OPY) share price jumped 3.0% higher yesterday but is the buy now, pay later (BNPL) share a good buy?

Why the Openpay share price is surging

I think a lot of the recent share price movements have less to do with Openpay and more to do with the broader market.

US tech stocks have been volatile in recent weeks and we’ve seen the same for Aussie tech and BNPL shares. The Openpay share price is now down 22.7% since 1 September but has recovered 11.9% this week.

Of course, the BNPL share is still up 150% for the year to $3.10 per share having hit an all-time high of $4.98 per share in late August.

There is something of a mania going on in ASX BNPL shares. You only have to look at rival Afterpay Ltd (ASX: APT) to see just how badly investors want to buy in.

To be fair, while the price to earnings (P/E) ratios are eye watering, recent capital gains have been underpinned by strong growth profiles.

Openpay’s full-year result contained plenty of good news for long-term investors. That included a successful expansion into the UK, a new Business to Business (B2B) offering with Woolworths Group Ltd (ASX: WOW) and strong local market growth.

The number of active plans jumped 229% to 824,000 with 141% more active customers and total transaction values up 98% to $192.8 million.

Openpay’s revenue jumped 64% to $18.0 million despite posting a 155% increase in its net loss after tax to $36.5 million.

Is the BNPL share a cheap buy?

For all of the positive growth signs, the Openpay share price may be a touch expensive.

I do like that it’s now down 22.7% in September but it feels like a lot of potential growth is baked into the current valuation. The group now has a market capitalisation of $334.4 million but I’d like to see some more cash generation.

However, if you’re deadset on buying BNPL shares, Openpay could be a good option. I do think it has a solid growth strategy but has some way to go before catching established rivals like Afterpay or Zip Co Ltd (ASX: Z1P).

If the Openpay share price were to dip below the $3 per share mark, I think I’d have to consider buying in.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 ASX shares I wouldn’t touch with a 10-foot pole
• Buy and hold these ASX shares to grow your wealth
• ASX 200 up 0.7%: Afterpay (ASX:APT) higher, QBE Insurance (ASX:QBE) lower on UK update
• Why Afterpay, Clinuvel, Kogan, & SEEK shares are storming higher today

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths 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 Woodside Petroleum Limited (ASX: WPL) share price climbed 1.2% higher yesterday in good news for shareholders. I’m starting watch the ASX energy share and wondering if it’s cheap enough to buy right now.

How has the Woodside share price performed in 2020?

Despite edging higher yesterday, 2020 has been a tough year for Australia’s largest oil and gas producer.

The Woodside share price has slumped 46.7% lower in 2020 as oil prices have been smashed. The coronavirus pandemic has seen demand for energy slump as the manufacturing and travel industries have ground to a halt.

An oil price war between Saudi Arabia-led OPEC+ and Russia also didn’t help. That culminated in oil contract prices briefly going negative in May.

These factors have combined to send the Woodside share price slumping lower in 2020 but is the ASX oil share cheap enough to buy?

Is the ASX oil share a cheap buy or a falling knife?

The outlook for the oil and gas markets are very uncertain in FY21. Much of this relies on the demand side of the equation including how quickly global restrictions ease and key energy-heavy sectors pick back up.

Since bottoming out in the March bear market, the Woodside share price has climbed 20.4% higher but has been trending lower since May.

Overall, investors seem to be pretty pessimistic on the sector. I tend to agree and think there would have to be a further discount to consider buying right now.

I’m not much of a speculator and falling ASX energy shares is about as speculative as it gets. Woodside does have a $17.5 billion market capitalisation and is an out and out large-cap share.

However, there are plenty of challenges facing the industry right now. I’d want to see open borders and a recovering travel industry before buying in.

A stabilising oil price would also be a big factor given how much the Woodside share price relies on the Brent and WTI crude prices.

Foolish takeaway

It’s worth considering buying ASX energy shares at a near-50% discount. However, I think volatile commodity prices and an uncertain macro outlook for FY21 make the Woodside share price too expensive right now.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• Saudi oil price cut to hit ASX shares

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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If you’re not sure that a $5,000 investment in the share market is worth your while, give me a few minutes to try and change your mind.

As of 30 June 2020, the Australian share market has provided investors with an average return of 8.8% per annum over the last 30 years. This is even after factoring in the chaos caused by the coronavirus pandemic in 2020.

If you were to invest $5,000 every year into the share market for 30 years and earned an 8.8% return per annum, your investments would grow to be worth almost $715,000 at the end of the period.

And thanks to the power of compounding, you will need just a further 4 years of the same to take the value of your investments beyond $1 million.

I think this demonstrates why allocating $5,000 of your funds to the share market each year is worth it and can help you generate significant wealth in the future.

With that in mind, here is where I would invest $5,000 into the share market right now:

Altium Limited (ASX: ALU)

The first share to consider investing $5,000 into is Altium. I think the electronic design software platform provider would be a great option. This is because of its exposure to the rapidly growing Internet of Things and artificial intelligence markets. Given its leadership position and the explosive growth expected from these markets, I believe it is well placed to deliver strong earnings growth over the next decade.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a donor management and engagement platform provider. In FY 2020 it reported a very impressive ~1,500% increase in EBITDAF thanks to strong demand for its platform, particularly during the pandemic. Pleasingly, this strong form is expected to continue in FY 2021, with management providing EBITDAF guidance of US$48 million to US$52 million. This represents a 91.2% to 107% increase year on year. But its growth won’t stop there. Management is aiming to grow its revenue to US$1 billion in the future. This compares to revenue of US$127.5 million in FY 2020.

ResMed Inc. (ASX: RMD)

A final option for your $5,000 investment is this sleep treatment-focused medical device company. I believe it could be a fantastic option due to its industry-leading products and massive market opportunity. Management estimates that there are close to 1 billion people impacted by sleep apnoea worldwide. But with only ~20% of these sufferers being diagnosed, it should have a long runway for growth. 

More reading

• 2 of the best ASX tech shares to buy and hold until 2025
• 2 ASX shares I’d buy in a heartbeat
• 2 top ASX shares to buy for income and growth
• 5 quality ASX shares to buy in September
• The best ASX blue chip shares to buy after the market selloff

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

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There are some very exciting ASX tech shares that are worth buying and holding until at least 2025.

Technology businesses have a strong operational advantage because the main element of the business is digital. It makes it a lot easier to expand quickly if a business can advertise and sell things digitally. Usually, tech businesses have lower operating costs compared to other industries as well. 

COVID-19 has completely changed the world. Technology businesses have seen the adoption of their services brought forward. I think that’s good news for top ASX tech shares like these:

Redbubble Ltd (ASX: RBL)

Redbubble operates two of the leading online artist marketplaces, Redbubble and TeePublic which have over 1 million independent artists. A number of products are sold through the marketplaces including apparel, stationery, housewares, bags, wall art and masks.

The ASX tech share had a really strong FY20. Marketplace revenue grew by 36% to $349 million and gross profit increased by 42% to $134 million. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) grew 141% to $15.3 million and EBITDA rose 358% to $5.1 million.

During the last quarter of FY20, marketplace revenue went up 73%, gross profit rose 88% and the business generated operating EBITDA of $8.4 million.

Redbubble is the type of business that can benefit enormously from network effects. The more artists it attracts, the more options there are available for potential buyers. If there are more buyers then it will encourage more artists to go to Redbubble and stay there. Recurring activity is good for profit margins.

The ASX tech share can expand into new product lines that could attract more growth. Masks was a key growth line after the launch in April 2020.

In FY20 it generated free cashflow of $38 million, compared to an outflow of $0.2 million in FY19. That means at the current Redbubble share price, it’s priced at 28x FY20’s free cashflow.

Excitingly, Redbubble revealed that July marketplace revenue grew by 132% and it saw similar sales levels in the first two weeks of August on a paid basis.

I’m not expecting the same level of growth all the way to 2025, but I believe Redbubble could keep capturing market share to 2025. It’s definitely one to watch in my opinion.

Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay is a very exciting ASX tech share. It’s helping large and medium US churches to receive donations from their congregations.

The Pushpay technology allows churches to livestream to their congregations, which is a very useful tool in this COVID-19 era.

FY20 was a very strong year for Pushpay. It grew its total processing volume by 39% to US$5 billion and total customers rose 42% to 10,896.

The company boasted of an annual revenue retention rate of more than 100%, meaning existing customers are contributing more to Pushpay’s revenue than before.

The ASX tech share’s recent acquisition of Church Community Builder was a smart move in my opinion. It brought together two complementary businesses. Each business can advertise to the other’s customer base and Pushpay can take the combined offering to new customers.

I believe that Pushpay could continue to be a market-beating share because of how fast its margins are rising.

At 31 March 2019 its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin was 9%, it grew to 17% at 30 September 2019 and rose again to 22% at 31 March 2020. In FY20 the gross profit margin rose from 60% to 65%. If this scaling continues as it gets bigger then it could turn into a very impressive business. 

I think that Pushpay could be much more profitable by 2025 and that will flow through to profit growth which will hopefully lead to strong shareholder returns.

At the current Pushpay share price it’s valued at 35x FY21’s estimated earnings.

Foolish takeaway

Both Pushpay and Redbubble are exciting ASX tech shares and I believe they can deliver good returns over the next five years. I particularly like Pushpay at the current price, its profit margins could continue to grow strongly for a number of years as it becomes larger.

More reading

• 2 ASX shares I’d buy in a heartbeat
• Where to invest $20,000 into ASX shares right now
• Where I’d invest $20,000 into ASX shares right now
• Buy and hold these stellar ASX growth shares for 10 years
• 3 ASX shares for beginners to buy

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended 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 Wednesday the S&P/ASX 200 Index (ASX: XJO) was a very strong performer and surged higher. The benchmark index jumped 1% to 5,956.1 points thanks partly to the tech sector.

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

ASX 200 poised to edge lower.

The ASX 200 index looks set to drop lower on Thursday after a mixed night of trade on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 9 points or 0.15% lower this morning. On Wall Street the Dow Jones rose 0.1%, the S&P 500 fell 0.45%, and the Nasdaq tumbled 1.2% lower.

US Federal Reserve keeps rates on hold.

As was largely expected, overnight the U.S. Federal Reserve voted to keep interest rates at zero in September. The central bank also indicated that this will remain the case for years to come. According to CNBC, Jon Hill, the senior fixed income strategist at BMO, thinks rates could be at zero until 2024. This could have some bearing on what the Reserve Bank does in the future.

Oil prices jump.

It could be a great day of trade for energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) on Thursday after oil prices jumped higher. According to Bloomberg, the WTI crude oil price is up 4.9% to US$40.16 a barrel and the Brent crude oil price is up 4.3% to US$42.28 a barrel. The catalyst for this was a pullback in oil inventories and production disruption caused by storms.

Tech shares on watch.

Australian tech stars such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) will be on watch after the Nasdaq’s recovery ran out of steam. The technology-focused index tumbled 1.2% lower overnight. As the local tech sector has a tendency to follow the Nasdaq’s lead, it could be a day in the red for our tech shares.

Gold price edges higher.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up slightly to US$1,967.50 an ounce. The precious metal barely even moved after the U.S. Federal Reserve suggested that rates will be low for years.

More reading

• ASX 200 rises 1%, SEEK (ASX:SEK) jumps 9%
• 3 ASX shares I wouldn’t touch with a 10-foot pole
• Meet the ASX sector that is cum-consensus upgrade for FY21
• SEEK (ASX:SEK) shares surge 9% today. Here’s why.
• Bear vs Strong Bear: Choosing the right hedge for your portfolio

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

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Overnight the U.S. Federal Reserve kept interest rates on hold at zero and suggested that this will remains the case for years to come.

Unfortunately for income investors, I suspect that it will be a similar story in Australia as well.

But don’t worry, because there are plenty of quality dividend options available on the Australian share market right now.

Two ASX dividend shares I would buy are listed below:

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share to consider buying is Bravura Solutions. I think the provider of software products and services to the wealth management and funds administration industries would be a great option right now following a sharp pullback in its share price. This was driven partly by the company warning that earnings could be flat in FY 2021 because of the pandemic.

I think this has created a fantastic buying opportunity for investors and believe a return to growth will come once the pandemic passes. Especially given its high quality Sonata product and recent acquisitions. These look to have positioned Bravura perfectly for solid earnings and dividend growth over the next decade. Based on the current Bravura share price, it offers a 3.25% yield.

Telstra Corporation Ltd (ASX: TLS)

I think this telco giant could be an ASX dividend share to buy. Especially after a notable pullback in the Telstra share price since its full year results release. The catalyst for this share price weakness has been concerns that another dividend cut is coming.

While there is a real possibility that Telstra will cut its dividend down to 12 cents per share in FY 2021, I’m optimistic this won’t be the case. This is because a shift to a more appropriate free cash flow based dividend policy would allow for it to be maintained if it achieves its guidance. Based on the Telstra share price, a 12 cents per share dividend will provide a fully franked 4.2% yield. Whereas if it maintains it, it will provide a very generous 5.6% yield.

More reading

• 2 top ASX dividend shares I would buy for income this week
• 3 retirement myths you can’t afford to believe
• The best ASX blue chip shares to buy after the market selloff
• Are telco shares winners now that everyone’s staying home?
• 3 ASX dividend shares to buy in a downturn

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 and Telstra 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 Next Science Ltd (ASX: NXS) share price was placed on a trading halt today after a capital raise was announced.

The Next Science share price closed yesterday at $1.32.

What does Next Science do?

Bacterial biofilms are a leading cause of antimicrobial resistance. They can be found in almost all aspects of human health, industry and food production. With nearly 80% of all global bacterial infections associated with biofilm bacteria, Next Science aims to address this problem.

The Australian medical company is developing and commercialising its Xbio technology. This patented product attacks biofilm structures by breaking metallic bonds that hold the extracellular polymeric substance together.

This in turn may reduce reliance on use of antibiotics and other infection treatments.

Why the capital raise?

Next Science is undertaking a capital raise of up to $15 million to support the launch of XPerience. A new addition to the Xbio family, it’s a surgical rinse of site infections.

The $15 million placement will comprise $8 million underwritten by Canaccord Genuity. This will be issued without shareholder approval.

A $2 million commitment will come from Next Science’s largest shareholder, Lang Walker. The allocation to Mr Walker is subject to shareholder approval to be voted at an extraordinary general meeting in mid-November.

Lastly, a $5 million share purchase plan will be available to existing shareholders from 25 September. The issue price is $1.20 per share which represents a 9% discount on the last closing price and a 6.25% discount to the five-day volume weighted average price.

Next Science’s managing director Judith Mitchell was delighted at receiving firm support for the placement and said XPerience was a potential game changer.

She said:

In our half year results briefing, I spoke about our prioritisation and focus on the preventative surgical site infection market. With around 110 million surgeries in the world per annum, this is a US$15bn per annum uncontested market space that is expected to double in size by 2030.

Surgical site infections are the leading cause of readmissions to hospitals and are a major cost and burden in health care. XPerience has proven superior performance against MSRA (Golden Staph) and other known pathogens. It is the only antimicrobial product that will be available to surgeons which can be left behind in the surgical site after a surgical close to help prevent infection occurring for over five hours after the surgery.

Next Science will re-lodge its submission to the United States Food and Drug Administration before the end of year. The company said it would move quickly to commercialise should approval be granted.

About the Next Science share price

The Next Science share price has underperformed in the market since the middle of last year, down almost 70%. The Next Science share price hit an all-time low of $1.00 in March 2020 and has slowly regained to $1.32 in the following months.

More reading

• ASX 200 rises 1%, SEEK (ASX:SEK) jumps 9%
• 2 ASX shares I’d buy in a heartbeat
• 3 ASX shares I wouldn’t touch with a 10-foot pole
• 2 top ASX dividend shares I would buy for income this week
• The Kogan (ASX:KGN) share price is up 180% in 2020: Is it still a buy?

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. 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 S&P/ASX 200 Index (ASX: XJO) climbed by just over 1% today to 5,956 points.

Here are some of the highlights from the share market:

SEEK Limited (ASX: SEK)

SEEK released an announcement today, noting media speculation relating to potential corporate activity involving Chinese employment platform Zhaopin.

The ASX 200 employment business said that in line with its previously disclosed investments strategy, it will regularly assess strategic options to maximise the long term growth aspirations of its investments.

With that in mind, SEEK said that Zhaopin and its shareholders are holding discussions with a number of parties to assess whether the introduction of new investors could better support Zhaopin’s long term growth aspirations. These discussions may or may not lead to changes with Zhaopin.

According to The Information, that potential investor is Alibaba which may invest hundreds of millions of dollars. The investment could lead to collaborations between Zhaopin and Alibaba which would see the employment business have access to Alibaba’s large customer base.

Spark New Zealand Ltd (ASX: SPK)

The New Zealand business released details of a three-year strategy covering FY21 to FY23. The Spark share price rose by nearly 2% today. 

Spark has a number of goals by 2023.

It wants to be primarily wireless with around 80% of relationships on wireless technology. Spark wants to be the leading cloud custodian by bringing the best of private and public cloud together. It’s aiming to have 5G and the internet of things deployed everywhere with unconstrained mobile capacity.

Finally, the business is aiming to have a top decile culture, defined by inclusivity and growth.

Spark Chair Justine Smyth said: “Our next three year strategy builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people and supporting New Zealand’s economic transformation.”

The CEO of Spark, Jolie Hodson, said: “Our investment in 5G, edge computing and network slicing will open up new opportunities in wireless and will enable smart business solutions beyond connectivity alone. Our end to end digital services capability across cloud, security and service management positions us well to accelerate digital transformation as businesses adapt to COVID-19.

“We see significant opportunities for growth in IoT, as New Zealand transitions to future ways of working and pursues productivity improvements across all sectors.”

Gold Road Resources Ltd (ASX: GOR) dividend policy

ASX 200 gold miner Gold Road Resources made an announcement today about its dividend policy.

The company said it will target an annual aggregate dividend payout of 15% to 30% of free cash flow for each calendar year in two half yearly payments. The free cashflow is defined as cashflow before debt and dividends.

It will also pay out franking credits. At 31 December 2019 it had $65.7 million of franking credits available for shareholders.

The payment of any dividend will be subject to maintaining a minimum net cash balance of $100 million.

Gold Road will announce any dividend payments when announcing its future full year or half year results.  

Gold Road Resources’ Chair Tim Netscher said: “In less than a year since we declared commercial production at Gruyere, I am pleased to be in a position to announce a dividend policy. The company is debt free and building a strong cash balance.

“The dividend policy seeks to share our strong cash flow generation with our shareholders whilst still allowing us to prioritise ongoing operations and growth opportunities.”

It’s expected that the inaugural dividend will be declared for the six month period ending 31 December 2020. The free cash flow for that period will inform the dividend amount.

More reading

• Meet the ASX sector that is cum-consensus upgrade for FY21
• SEEK (ASX:SEK) shares surge 9% today. Here’s why.
• Bear vs Strong Bear: Choosing the right hedge for your portfolio
• Firefly (ASX:FFR) share price tanks despite further positive drill results
• Here’s how I would spend $10,000 on ASX shares right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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.

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