With interest rates at ultra-low levels and unlikely to improve for some time to come, I continue to believe that the share market is the best place to earn a passive income.

But which dividend shares should you buy? Listed below are two top ASX dividend shares which I think are high quality options right now. Here’s why I like them:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a wholesale distributor of computer hardware and software. It has been an exceptionally strong performer in 2020 despite the pandemic. In fact, this week Dicker Data released a half year update which revealed unaudited first half revenue of $1 billion and net profit before tax of $40 million. This represents an 18.3% and 25% increase, respectively, over the prior corresponding period.

In light of this, I’m confident it is in a position to deliver on its plan to increase its dividend by 31% this year. This will bring it to 35.5 cents per share, which based on the current Dicker Data share price, equates to a fully franked 4.6% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share that I think income investors ought to buy is Telstra. After several years of struggles because of the decline of its fixed line business due to the NBN rollout, I believe a return to growth is finally on the horizon. This is thanks to its sizeable cost cutting, the arrival of 5G internet, and of course the easing of the NBN headwinds.

In respect to the latter, peak pain from the NBN rollout is expected to hit in the near future. After which, the pressure on its earnings will ease and growth could be on the agenda once again. Positively, until then I’m confident that its free cash flows are more than enough to sustain its 16 cents per share dividend. Based on the current Telstra share price, this equates to an attractive fully franked 5% dividend yield.

More reading

• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• Dicker Data share price surges higher after revealing strong first half profit growth
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• These 2 ASX tech shares show stellar growth prospects
• Top ASX Stock Picks for July 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed through the 6,000-point level. The benchmark index jumped 1.65% to 6,032.7 points.

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

ASX 200 expected to rise again.

The ASX 200 looks set to end the week on a high on Friday. According to the latest SPI futures, the benchmark index is expected to rise 36 points or 0.6% at the open. This follows a solid night of trade on Wall Street which saw the Dow Jones rise 0.35%, the S&P 500 climb 0.45%, and the Nasdaq push 0.5% higher. U.S. equities pushed higher after a better than expected U.S. jobs report.

Oil prices push higher.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could end the week on a high after oil prices continued their recovery. According to Bloomberg, the WTI crude oil price is up 1.2% to US$40.30 a barrel and the Brent crude oil price is 1.7% higher to US$42.75 a barrel. Solid U.S. economic data drove oil prices higher overnight.

Gold price recovers.

Gold miners including Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price has risen 0.4% to US$1,787.70 an ounce despite the strong economic data.

Magellan rated neutral.

The Magellan Financial Group Ltd (ASX: MFG) share price could be overvalued according to one leading broker. A note out of Goldman Sachs reveals that its analysts have retained their neutral rating and $51.69 price target on the fund manager’s shares. Goldman notes that Magellan’s shares are currently trading at 23.5x FY 2021 earnings. This is ahead of its five-year average of 20x. Magellan share price closed at $61.68 on Thursday.

Aristocrat and Reliance block sales.

Aristocrat Leisure Limited (ASX: ALL) and Reliance Worldwide Corporation Ltd (ASX: RWC) shares will be on watch on Friday after reports of large block trades. According to the AFR, someone was selling $127 million worth of Aristocrat shares yesterday afternoon. After which, an investor offloaded the equivalent of a 4.4% stake in Reliance Worldwide

More reading

• Is the CSL share price fairly valued?
• Should you buy these 2 new ASX 200 index additions?
• This ASX fund manager is still ultra-bearish on shares
• Should you buy ASX gold shares like Saracen Minerals in July?
• Why I would buy and hold a2 Milk and this ASX 200 share until 2030

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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With the S&P/ASX 200 Index (ASX: XJO) surging above the 6,000 points level again, a number of shares have been pushing higher in recent days.

Some have pushed so hard they are now trading at record highs. Two which have achieved this feat are listed below. Here’s why they are on form right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price continued its remarkable run and hit a record high of $68.62 on Thursday. This latest gain means that the payments company’s shares are now up an incredible 850% from their March low. This strong gain has been driven by its very positive performance during the pandemic, strong customer growth in the United States and the United Kingdom, international expansion options, and positive broker notes.

The latter appears to have been the catalyst for taking its shares to a new high yesterday. As I mentioned here, analysts at Citi retained their neutral rating but more than doubled their price target on Afterpay’s shares to $64.25. Citi lifted its price target after upgrading its earnings estimates to reflect strong customer growth and the acceleration of the shift to online shopping.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price rocketed 18% higher to a record high of $7.44 yesterday. This means the online homewares retailer’s shares are now up 435% from their March low. Investors were fighting to get hold of shares on Thursday after it successfully completed a $40 million share placement to institutional investors. These funds will be used to make further investments in its growth strategy, while also improving its technology, product, and service offerings.

In addition to this, it released a business update which revealed that its sales were strong again in June. Monthly gross sales to 28 June were up 130% on the prior corresponding period. This appears to have put the company in a position to deliver a bumper profit result in FY 2020.

More reading

• Afterpay share price hits $67! Are BNPL shares in a bubble?
• Why the Afterpay share price zoomed to a new record high today
• Temple & Webster share price at an all-time high after capital raise
• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• ASX 200 up 0.9%: Citi lifts Afterpay price target, Webjet boosts liquidity

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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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