There are some very reliable dividend shares on the ASX. I plan for a few of them to pay for my retirement.

I think dividend shares are great. It’s very pleasing to receive dividend cashflow from your investments without any effort. There’s a lot of things you need to do when owning a rental property like paying the bills, dealing with a property manager, getting a good tenant into the property, dealing with tenant issues and collating all the info for the tax return. After all that work, a lot of rental properties are actually negatively geared. That means there are more expenses than income each year, you’re losing money.

Dividend shares pay you to own them. You can get juicy, income-boosting franking credits. Many dividend shares generate long-term capital growth as well. I’m planning for these dividend shares to pay for my retirement:

Dividend share 1: Future Generation Investment Company Ltd (ASX: FGX)

Future Generation is a listed investment company (LIC) with a difference. There are no management fees or performance fees involved with this LIC. It donates 1% of its net assets each year to youth charities, hence the name ‘Future Generation’. In 2019 it donated $4.6 million across a number of charities.

The dividend share invests in the funds of fund managers that invest in ASX shares. Those fund managers also work for free to enable Future Generation to give good donations. Some of those quality fund managers include Bennelong, Paradice, Regal, Eley Griffiths and Wilson Asset Management. The underlying diversification is strong because of all the different funds.

Future Generation has been a solid performer. At the end of May 2020 its gross portfolio performance outperformed the S&P/ASX All Ordinaries Accumulation Index over one month, six months, 12 months, three years, five years and since inception in September 2014. 

LICs can turn investment returns into a nice dividend for shareholders. At the current Future Generation share price it offers a grossed-up dividend yield of 7.2%.

Dividend share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I think Soul Patts is a great dividend share for a number of reasons. The investment conglomerate has grown its dividend every year since 2000. I’d really like to have that type of income certainty in retirement. In-fact Soul Patts has paid a dividend every year in its listed history since 1903.

The company is invested in a number of shares like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API). It’s also invested in a number of unlisted businesses like swimming schools, resources and agriculture.

Soul Patts retains some of its cash profit each year to re-invest into more investment opportunities. At the current Soul Patts share price, it offers a FY20 grossed-up dividend yield of 4.3%.

Dividend share 3: Magellan Global Trust (ASX: MGG)

Magellan Global Trust could be one of the best set ups for retirement. There is a widely-used rule that suggests that people can withdraw 4% of their portfolio each year in retirement. I’m not sure if that rule works for some investments, particularly when it comes to sequencing risk.

Dividend share Magellan Global Trust targets a 4% distribution yield for its investors. That’s a good starting yield. If the trust makes better total net returns than 4% a year then the distribution payment should steadily grow over time.

At the end of May 2020 it had generated net returns of 12.5% per annum since inception in October 2017. It’s invested in high quality global shares like Microsoft, Alphabet, Visa, Mastercard, Tencent and Alibaba. These types of businesses seem solid in the face of COVID-19. 

The trust started with a bi-annual distribution of 3 cents per unit. It just announced an upcoming distribution of 3.58 cents per share. At the current Magellan Global Trust share price it offers a distribution yield of 3.85%.

Foolish takeaway

I really like each of these dividend shares for long-term income. I think Soul Patts is the best choice for reliable dividends. Future Generation has the best yield, though Magellan Global Trust could make the best total returns because of its global investment focus on the best businesses.

More reading

• 2 dirt-cheap ASX shares to buy next week
• Here’s how to play China’s V-shaped growth story
• 10 FY21 ASX share picks revealed by Bell Potter
• 3 ASX dividend shares for every income investor’s portfolio
• ASX shares vs property: which is a better investment?

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, MAGLOBTRST UNITS, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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As I mentioned here yesterday, at present the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account currently provides savers with a base interest rate of just 0.05%.

This is broadly in line with what you’ll find with other savings accounts. And unfortunately, I expect rates to stay at these ultra low levels for some time to come.

In light of this, if you’re looking to earn an income, then you might want to consider investing your funds into some of the high quality dividend shares on the ASX.

Three top ASX dividend shares I would buy are listed below:

Coles Group Ltd (ASX: COL)

I think this supermarket operator would be a great option for income investors. I think Coles is well-positioned to grow its dividend at consistently solid rate over the next decade. This is because of its positive growth outlook thanks to food inflation, its refreshed strategy, and expansion opportunities. Based on the current Coles share price, I estimate that it offers a fully franked 3.9% FY 2021 dividend.

Rio Tinto Limited (ASX: RIO)

Another dividend share that I think income investors ought to consider buying is this mining giant. Because of the high prices that iron ore is commanding at present, I believe Rio Tinto is well-placed to deliver high levels of free cash flow this year and next. And given the strength of its balance sheet, I suspect the majority of this free cash flow will be returned shareholders. In light of this, I estimate that Rio Tinto shares currently offer a forward fully franked dividend yield of at least 5%.  

Rural Funds Group (ASX: RFF)

A final dividend share that I would buy right now for income is Rural Funds. It is a leading agriculture-focused property company with a collection of quality assets throughout Australia. The main attraction to Rural Funds for me is its long term tenancies. These have been designed to allow the company to consistently increase its distribution at a solid rate each year. For example, in FY 2020 it plans to pay 10.85 cents per share and in FY 2021 it intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, the latter equates to a 5.7% yield.

More reading

• 2 ASX dividend shares with yields over 6%
• Here’s how to play China’s V-shaped growth story
• What’s going on with the Coles share price?
• Why Adbri, BlueScope, Netwealth, & Rio Tinto shares are tumbling lower
• Risk to supermarkets is rising but is Woolworths share price still a 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 RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 unprecedented consequences of the coronavirus pandemic have taken a heavy toll on the global economy. As a result, the pandemic has forced individuals and society to adapt in order to function and endure. Despite the widespread chaos for most businesses, some notable ASX COVID-19 success stories have emerged.

Here are 3 companies that have come into their own as a result of the coronavirus lockdown.

Temple & Webster Group Ltd (ASX:TPW)

Temple & Webster is Australia’s largest online retailer of furniture and homewares, boasting more than 150,000 products for sale. The company has been a market darling during the coronavirus lockdown period as shoppers switch to online retail avenues.

Temple & Webster acknowledge this strong demand in a recent trading update, which highlighted a 130% surge in gross sales to 28 June on a year-on-year basis.  In mid-June, the online retailer reported a 668% increase in year-to-date EBITDA of $7.1 million. Additionally, Temple & Webster reported a 68% increase in year-to-date revenue of $151.7 million.

Despite being debt-free and boasting around $30 million in cash, Temple & Webster recently completed a $40 million share placement. The company noted that this will allow for further investments in growth and will improve its technology, product and service offerings.

Marley Spoon AG (ASX: MMM)

Another company to capitalize on the demand for online and convenience services has been Marley Spoon. The subscription-based meal-kit provider saw an unprecedented surge in demand during the pandemic. Marley spoon reported that 7.5 million meals were delivered in the first quarter of 2020.

This surge in demand resulted in Marley Spoon recording its first-ever positive cash flow and accelerating future growth plans. This has been reflected in the company’s share price, which has surged more than 600%  since mid-March. In response, the company completed a $16.6 million capital raising to strengthen its balance sheet and fund continued global expansion.

Kogan.com Ltd (ASX: KGN)

Kogan.com is fast becoming a household name following the coronavirus pandemic. During the lockdown period, Kogan’s active customer base grew to over 2 million, with 126,000 additional customers as of 31 May.

Kogan reported a 100% increase in gross sales across April and May thanks to consumers opting for the convenience of online shopping. The online retailer also reported a 130% surge in gross profit for the same period.

The demand has rippled into the Kogan share price which has surged more than 300% from late March to trade near all-time highs. The online retailer recently completed a $115 million capital raising in order to accelerate future acquisition opportunities.

Foolish takeaway

The trend among these ASX COVID-19 success stories is the benefits they have all experienced from the change in consumer behaviour and their continued investment in online exposure.

Although all 3 companies have rallied tremendously since March, I can’t advocate buying shares in any at the moment.

Instead, I think a prudent strategy for investors would be to compile a watchlist of similar companies that could thrive in 2020 and beyond.

More reading

• How I’d build a $100,000 portfolio with ASX growth shares
• 10 more top broker ASX share picks for FY21
• Why Afterpay and this ASX share just hit record highs
• Temple & Webster share price at an all-time high after capital raise
• The Marley Spoon share price is up 588% in 2020. Will it keep delivering?

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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The S&P/ASX 200 Index (ASX: XJO) was back on form last week and charged notably higher. The benchmark index climbed a total of 153.8 points or 2.6% to end the period at 6057.9 points.

A good number of shares climbed higher with the market. However, a few stood out with particularly strong gains. Here’s why these were the best performers on the ASX 200 last week:

The Afterpay Ltd (ASX: APT) share price was the best performer on the ASX 200 last week with an 18.4% gain. Investors were buying the payments company’s shares thanks partly to a broker note out of Citi. Although its analysts have retained their neutral rating, they have more than doubled their price target to $64.25 from $27.10. The broker made the move after upgrading its earnings estimates materially. This was in response to Afterpay’s impressive growth in the UK and United States and its belief that it will benefit from the acceleration in the shift to online shopping.

The Nearmap Ltd (ASX: NEA) share price wasn’t far behind with a 17.5% gain. A positive broker note released last week could also have played a role in this strong gain. A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted their price target to $2.47. Macquarie appears impressed with the aerial imagery and location data technology company’s performance during the pandemic. Nearmap recently confirmed that it is on track to achieve its FY 2020 guidance.

The NEXTDC Ltd (ASX: NXT) share price was a strong performer and jumped 14.6% last week. Investors were buying the data centre operator’s shares after it announced major new contract wins in New South Wales. According to the release, NEXTDC’s contracted commitments at its New South Wales data centre facilities have now increased by approximately 4MW, to more than 36MW. And including expansion options, its data centres in the state are now approaching a sizeable 60MW. This is more than the total capacity of its S1 and S2 data centres.

The Domain Holdings Australia Ltd (ASX: DHG) share price was on form and surged 14.3% higher last week. This was despite there being no news out of the property listings company last week. The Domain share price has now more than doubled in value since dropping to a 52-week low of $1.68 in March.

More reading

• How I’d build a $100,000 portfolio with ASX growth shares
• These were the worst performing ASX 200 shares last week
• 2 dirt-cheap ASX shares to buy next week
• ASX 200 closes 0.4% higher, Cochlear share price up 6%
• Here are the 10 shares that move global markets

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap 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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Building a $100,000 investment portfolio with only ASX growth shares is not for the faint of heart. Growth shares can be a lucrative ground to hunt for oversized ASX returns. However, growth shares can also be volatile and often have a tendency to underperform during market sell-offs. This can make them emotionally taxing investments to hold if things go south on the markets.

But if you can stomach this volatility, then building a $100,000 portfolio of growth shares could be the right path for you. So here’s how I would build such a growth-focused portfolio:

Spend $25,000 on Openpay Group Ltd (ASX: OPY) shares

Openpay is one of the ‘mid-tier’ players in the red-hot buy now, pay later (BNPL) space. Its shares have been on an absolute tear in recent months, rising more than 300% over the past 3 months alone. Even with the current Openpay share price, I still think there could be an opportunity here for a long-term investment. Unlike its bigger rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), Openpay focuses more on life’s ‘bigger’ purchases, such as medical bills, hardware, bedding and dental. I think this is a relatively untapped niche, and if Openpay can keep its momentum going, I’m optimistic about the prospect of a decent, long-term payoff from this company.

Spend $25,000 on Polynovo Ltd (ASX: PNV) shares

Polynovo is one of the most exciting, up-and-coming ASX healthcare shares in my opinion. Its flagship ‘Novosorb’ product is a cutting-edge skin treatment for severe burns, which has already received rave reviews from various corners of the medical profession. Polynovo is also working to expand into the hernia and breast implant markets, which (if the company can pull it off) represent significant future growth opportunities. The Polynovo share price has yet to re-touch its February high, which I think could mean there is plenty of near and long-term growth left on this runway.

Add $25,000 of Marley Spoon AG (ASX: MMM) shares

Marley Spoon is a meal delivery service that works on a subscription basis. It targets consumers who care about quality, nutritious meals but lack either the time or inspiration to shop for the ingredients themselves. The company provides a continually updated menu and delivers the precise ingredients enabling customers to cook their chosen meals at home. The trend towards time-effective, healthy eating was already on the rise prior to COVID-19.

Following the onset of the pandemic and its associated lockdowns, however, the move towards these types of services has accelerated even further. As a result, the Marley Spoon share price has been on fire in recent months, climbing more than 500% year to date. This was fuelled by revelations the company’s services were selling like hot cakes during lockdowns, with sales up 46% in the first quarter of 2020. If even some of this recent increase in the demand for convenient, cook-at-home meals continues longer term, I think Marley Spoon has a very bright future.

Finish with a $25,000 investment in ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO)

This exchange-traded fund (ETF) holds a basket of global companies that are all involved in robotics and automation. I feel this is an area we can probably all agree is ripe for sizable future growth. In my opinion, the trend towards greater automation is one of the most significant in the commercial world. Afterall, every company wants to become more efficient with their capital. With this investment, you are buying into companies like Daifuku Co, NVIDIA, ServiceNow, and iRobot (the robotic vacuum cleaner company, not the Will Smith movie!). I believe these are all exciting and disruptive growth organisations. This ETFs management fee isn’t exactly cheap at 0.69% per annum. But I think it’s worth it considering the global exposure this ETF can provide for us ASX investors.

More reading

• Here are 3 ASX COVID-19 success stories
• These were the best performing ASX 200 shares last week
• What’s going on with the Coles share price?
• Why you can expect further gains for ASX shares this quarter
• Will the Afterpay share price break $100 in 2020?

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and ZIPCOLTD FPO. 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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Strong gains in the tech sector helped drive the S&P/ASX 200 Index (ASX: XJO) notably higher last week. The benchmark index rose 153.8 points or 2.6% to end the period at 6057.9 points.

Unfortunately, not all shares were able to follow the market higher last week. Here’s why these were the worst performers on the ASX 200 over the period:

The Adbri Ltd (ASX: ABC) share price was the worst performer on the ASX 200 last week with a 26.1% decline. Investors sold off the building materials company’s shares on Friday after Alcoa of Australia decided not to renew its current lime supply contract when it expires at the end of June 2021. This means Alcoa is ending its almost 50-year relationship with Adbri, which was formerly known as Adelaide Brighton. And while this contract currently constitutes approximately $70 million or 4.6% of its annual revenue, investors appear concerned that others may also switch to cheaper imported products.

The Perenti Global Ltd (ASX: PRN) share price was some way behind with a disappointing 8% decline. This latest decline means the engineering company’s shares are now down 22% over the last 30 days. Investors have been selling the mining services company’s shares over the last few weeks after the release of a business update in June. Perenti advised that it expects FY 2020 underlying profit after tax to be $106 million to $110 million. This was a 4% to 8% reduction on its guidance that was withdrawn in March.

The Southern Cross Media Group Ltd (ASX: SXL) share price started the new financial year as it finished the last and fell 7.9%. This was despite there being no news out of the media company. The Southern Cross Media share price was the worst performer on the ASX 200 in the last financial year with a whopping 80.7% decline. Concerns that the coronavirus crisis could impact advertising revenues materially and a highly dilutive capital raising have weighed on its shares.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price was out of form and dropped 6.2% lower last week. This decline appears to have been driven by an institutional investor selling down its stake. On Thursday Bennelong Australian Equity Partners offloaded the equivalent of a 4.4% stake in Reliance Worldwide. It went from an interest of 123,730,477 shares down to 81,524,354 shares.

More reading

• 2 dirt-cheap ASX shares to buy next week
• ASX 200 closes 0.4% higher, Cochlear share price up 6%
• Here are the 10 shares that move global markets
• Where to invest $5,000 into ASX 200 shares immediately
• The latest ASX stocks to be downgraded by top brokers today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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I’m a very big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price has been a market beater over the last decade with an average annual return of 11.8%. This has been driven by Cleanaway delivering solid earnings growth over the period and growing into a real force in the waste management industry. This has particularly been the case during the last few years following the successful acquisitions of Toxfree and SKM Recycling. If you had invested $20,000 into its shares in 2010, it would be worth a cool $61,000 today.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price has been a particularly positive performer over the last 10 years. During this time the severe skin disorders-focused biopharmaceutical company’s shares have generated an average total return of 26.9% per annum. The majority of these gains have come in the last few years following the successful development of its lead compound, SCENESSE. This is a drug which is currently treating erythropoietic protoporphyria and could soon be expanded to treat vitiligo. A $20,000 investment into Clinuvel’s shares 10 years ago would be worth a sizeable $217,000 today.

CSL Limited (ASX: CSL)

The CSL share price has certainly not disappointed over the last 10 years. Thanks largely to its high level of investment in research and development, CSL now has an extremely lucrative portfolio of therapies. It also has a growing vaccine business following its acquisition of the Novartis global influenza vaccine segment. Combined, they have underpinned consistently strong sales and earnings growth. This has resulted in CSL’s shares providing investors with an average return of 25.1% per annum over the last decade. Which means that $20,000 invested in its shares in 2010 would now be worth $188,000 today.

More reading

• Is the ANZ, APA or CSL share price a strong buy?
• Looking to start a share portfolio? Here are 3 quality ASX shares to begin with
• Is the CSL share price fairly valued?
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• Why I would buy CSL and these ASX blue chip shares 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 CSL Ltd. 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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