The Stemcell United Ltd (ASX: SCU) share price has nearly doubled today, rising by 83.3% at the time of writing. In short, this is due to the company’s announcement of its joint venture (JV) agreement with Blue Aqua International Pty Ltd to cultivate and farm sea grapes in Singapore on a commercial scale.

The proposed JV partner, Blue Aqua International, is a one-stop solution provider for the aquaculture industry worldwide. Specifically, the group provides cutting-edge solutions for the management of the aquaculture environment and the optimisation of animal nutrition.

Stemcell United is an Australian small cap in the field of plant stem cell technology. Accordingly, it is actively researching products in industrial cannabis and Chinese herbs for use in the cosmeceutical fields. 

What moved the Stemcell share price?

Stemcell United has successfully trialled plant stem cell technology on Sea Grape cultivation at its research base located in Singapore. As a result, the joint venture combines the strengths of both parties in creating an integrated aquaculture farming system. Moreover, the collaboration aims to implement a scalable circular economy in aquaculture. This includes plans to promote the ocean vegetable’s unique qualities as a sustainable superfood and plant-based protein.

The Stemcell share price has rallied based on the potential for revenue generation within a relatively short period of time. Although the company already generates revenues, this moves it closer to becoming a profitable organisation. 

Management commentary

Mr. Philip Gu, Stemcell United CEO and Executive Chairman, commented:

SCU is honoured to be able to partner with Blue Aqua in making Sea Grapes available to the growing population on a commercial scale, and with the strong belief that Sea Grapes will become part of a recognised balanced diet mix… The COVID-19 pandemic has added additional urgency to Singapore’s food security concerns, which makes this joint venture even more compelling.

Dr. Farshad Shishehchian, Founder, Group President and CEO of Blue Aqua International commented:

The synergy with SCU is palpable. Passion and a strong technological partnership is a good recipe for sustainable growth. The joint incorporation of SCU Green Aqua Farm embodies our continual efforts to build a circular economy in aquaculture, starting with our own production systems towards the development of sustainable nutrition globally.

More reading

• Ramsay (ASX:RHC) share price firms as its UK hospitals reopen to private patients
• Top brokers name 3 ASX shares to buy today
• The Michael Hill (ASX:MHJ) share price has rocketed 11% today. Here’s why.
• Bigtincan (ASX:BTH) share price edges higher following acquisition
• What is the biggest financial regret since the pandemic?

Motley Fool contributor Daryl Mather 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 Michael Hill International Ltd (ASX: MHJ) share price is storming higher today following the release of its Q1 trading update for the FY21 period.

At the time of writing, the Michael Hill share price is up 10.84% to 46 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.1% to 6,396 points.

Let’s see how the retail jeweller performed for the first quarter of the financial year.

Q1 trading update

Michael Hill reported a solid result despite COVID-19 impacting its business operations and reducing foot traffic. For the quarter ending September 27, same store sales grew to $116.7 million, up 7.3% on the prior corresponding period. The company said it remained focused on its growth strategies to support both sales and margin.

The increased margin was attributed from 100 to 200 bps for the Q1, with gross profit growth outpacing sales. Michael Hill’s online sales also experienced an increase, up 129% with digital initiatives delivering a favourable outcome. Digital channels now represent 5.3% of total company sales.

Michael Hill’s loyalty program saw its membership base exceed 260,000 members, reflecting an 80.9% lift from June 2020.

The company said it had carefully managed capital expenditure, working capital, inventory levels, and cost of doing business. The disciplined cost focus has helped Michael Hill maintain a healthy net cash position for the quarter end.

COVID-19 store closures

At the business end of things, Michael Hill advised it closed 44 stores over Q1 period due to COVID-19. In addition, 15 more stores were dragging down group performance as a result of low foot traffic volumes.

The company has a total of 289 stores across all markets in the Australia and New Zealand.

What did the CEO say?

Commenting on the results, Michael Hill CEO Daniel Bracken said:

I am particularly pleased with our first quarter results from both a sales and margin perspective. Although experiencing double digit foot traffic decline at a store level, we achieved a significant lift in same store sales, largely attributable to a number of key initiatives delivering material improvements in conversion and ATV.

As previously reported, our emphasis has shifted from a focus on top line sales and market share recovery, to a balance of both margin and sales growth, underpinned by our strategic initiatives. It is encouraging to see so many of these strategies now flowing through to our results.

About the Michael Hill share price

The Michael Hill share price has been falling since 2016, with previous trading highs of $1.72 now at 46 cents. With a market capitalisation of $178 million, shareholders have seen their value drop by more than 70% in the last four years.

More reading

• The iSelect (ASX:ISU) share price was on the move today. Here’s why.
• Why the Spirit (ASX:ST1) share price is shooting the lights out today
• The Azure Minerals (ASX:AZS) share price has rocketed 62%. Here’s why.
• Why the Mount Gibson (ASX:MGX) share price is moving higher today
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares

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 Bigtincan Holdings Ltd (ASX: BTH) share price has edged 1.5% higher today after the company announced the completion of its acquisition of Danish sales technology company, Agnitio. The acquisition will provide the Australian sales enablement platform with additional reach into the life sciences sector. Specifically to pharmaceuticals and medical devices companies. In addition, the acquisition also brings with it 3,000 users across 45 countries and an estimated sustainable annualised recurring revenue (ARR) of A$1.6 million. 

The acquisition will be fully funded from existing cash reserves raised through the institutional placement and share purchase plan (SPP) completed in May and June 2020.

Impact on the Bigtincan share price

Aside from growing the company’s presence in Europe, the acquisition brings many strategic benefits to Bigtincan. Most beneficial over the long term, I believe, are Agnitio’s proven track record and new technology for remote selling. In addition, the acquisition provides Bigtincan complimentary technology, as well as an executive team with significant depth of experience in life sciences. 

Bigtincan saw its revenue increase by 56% in FY19 as it continues to grow into the global sales enablement market space. In addition, 95% of the company’s total revenue is ARR, with a gross margin of 85%. With these tailwinds, I believe the acquisition clearly provides a positive financial impact. In addition, it delivers a focused, go-to-market strategy with a new and active customer base for Bigtincan. I feel this will likely benefit the company’s long-term performance and, as such, the Bigtincan share price. 

Management commentary

Regarding the acquisition, David Keane, Co-founder and CEO of Bigtincan said:

Life sciences organisations are seeking new ways to engage their customers remotely while remaining compliant with local and international laws. Agnitio has pioneered the market’s most advanced virtual engagement solution specifically designed to support life sciences companies, and when added to Bigtincan’s existing market leading Sales Enablement Automation platform, will help life sciences companies interact with their customers in a virtual ‘Digital Sales Room’ environment.

CEO of Agnitio, Lars Meincke, said:

Agnitio’s core mission has been to empower sales teams, market access and medical affairs teams in today’s digital world, and we believe that together with the global Bigtincan team, we can accelerate progression towards that vision.

Foolish takeaway

This acquisition is yet another landmark for Bigtincan’s growing sales enablement platform. Specifically, it provides additional revenue channels that can continue to be built upon. Moreover, it sustains the company’s gross margins and provides it with new technology for mobile and remote sales. The Bigtincan share price has a current market capitalisation of approximately $500 million with annual revenue of $31 million.

More reading

• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• Why all eyes will be on the Bigtincan (ASX:BTH) share price on Thursday
• Are these the best small cap ASX shares to buy for FY 2021?
• Why I would buy Xero (ASX:XRO) and this ASX tech share
• Why these ASX tech shares just hit record highs

Daryl Mather 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 has recommended BIGTINCAN 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.

The COVID-19 pandemic has affected the markets and economy like few single events in recent history. Everything changed after the pandemic hit – markets turned from bull to bear, entire industries were obliterated, millions of jobs were lost, and the United States plunged into recession. Of course, that all takes a backseat to the devastating health effects and tragic loss of life it has caused.

It came upon Americans so fast and so furiously that few had time to process the financial implications. But roughly six months later, people have had time to reflect, and there is one major regret. A new survey by Allianz revealed that 52% of Americans regret not having more of their savings protected from market loss.

While the market did bounce back and recover all of the losses within the next six months, the US remains in a recession and there are concerns about a tech bubble or another crash. Investors who are concerned about more volatility in these uncertain times should take this opportunity to review their portfolios, while keeping one key point: that markets have always bounced back to produce strong performance in the long run.

Long-term, the numbers are on your side

The type of volatility we saw this past spring is a hard thing to stomach for many investors watching their portfolios drop 30%, 40%, 50%, or more in the span of weeks. But it provided a great example of why it is so important to ignore short-term fluctuations and stay focused on the long term. From the low on March 23, the S&P 500 Index (INDEXSP: .INX) has gained back all of its losses and then some – as it’s now up about 6% year to date. If you sold out of some stocks or investments at the bottom, you locked in your losses and never got the returns back.

The fact is, the markets, over the long term, have been remarkably resilient. Over the last 10 years through to 8 October, the S&P 500 has an average annual return of 11.6% – that, of course, includes the COVID-19 crash. If you want to look really long-term, the S&P 500 has posted an average annual return of 8.4% over the past 30 years through 8 October.

Now, if you are in retirement or have a shorter time horizon for whatever reason or goal (college payments, for example), the short-term volatility becomes more of a concern. Your time horizon would affect your asset allocation. Whereas someone who’s 10 or more years out from their goals can ride it out, people with a time horizon of five years or less may want to allocate their assets accordingly to add more safety and stability.

Reassess your investments 

The market crash wasn’t the only thing that happened when the pandemic hit – its impacts went much deeper than that. The shutdowns were temporary, but the effect on certain industries was much longer-term. Restaurants are still affected by social distancing protocols, as are movie theaters, airlines, retail stores, hotels, theme parks, and entertainment venues, to name a few. Banks are looking at interest rates in the 0% range through 2023, according to the Federal Reserve. On the other hand, social distancing and the pandemic in general have accelerated e-commerce and the companies that operate within it, as well as companies that produce technology that allows us to live and work in this new normal.

In other words, the pandemic has facilitated longer-term societal shifts. So, as an investor, it is a good time to reassess your portfolio with a macro view of the markets. Know which industries are growing and which are more resistant to a recession, but also be aware of those spaces that could suffer longer-term effects. Which stocks you invest in always comes down to a granular look at the company, but having an awareness of the larger macro forces will better inform your choices.

If you keep these ideas in mind, you’ll likely have fewer financial regrets.

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

More reading

• Why the Afterpay Ltd (ASX:APT) share price broke its record high today
• Why the Dubber (ASX:DUB) share price rocketed 16% higher today
• The niche ASX shares critical to fuelling the tech boom
• Why the Clearview (ASX:CVW) share price is surging up today
• 3 top global ASX dividend share ideas

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.

The post What is the biggest financial regret since the pandemic? appeared first on Motley Fool Australia.

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

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The Afterpay Ltd (ASX: APT) share price is up 2.5% at 96.90 this afternoon after hitting a record high of $98.68 in opening trade today.

Afterpay’s share price has defied naysayers and is now 5% up from its previous all-time highs, set on 25 August. Year-to-date, the share price is up 218%.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 8% for the year.

As if Afterpay shareholders needed anything else to celebrate this year, AUSTRAC just delivered it.

What does Afterpay do?

Afterpay is a leader in the buy now, pay later (BNPL) market. Afterpay’s payment platform allows people to buy and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.

Founded in 2015, Afterpay shares first began trading on the ASX in June 2017. Today the company operates in Australia, the United States and the United Kingdom, with current expansion plans into the wider European market.

What was AUSTRAC’s decision on Afterpay?

In June 2019, financial crimes watchdog AUSTRAC ordered Afterpay to appoint an external auditor into allegations the company had broken anti-money laundering legislation. Last November the report indicated that Afterpay had indeed breached some laws, but that it was due to poor legal advice rather than its inherent business model.

In an announcement to the ASX this morning, Afterpay confirmed that it had received final notification from AUSTRAC, and that the agency would not be taking any further regulatory action.

AUSTRAC noted that the BNPL giant had uplifted its AML/CTF compliance framework and financial crime function, and completed its mandated remediation activities.

Commenting on the decision, Afterpay chair Elana Rubin said:

We are pleased to have received AUSTRAC’s decision following the external audit as it provides the company and its stakeholders with certainty and acknowledges the work the company has undertaken to strengthen its AML/CTF compliance.

The external audit provided Afterpay with the opportunity to better understand our obligations and to improve the way we manage our AML/CTF risks. We will use these learnings and our ongoing engagement with AUSTRAC to continue enhancing our AML/CTF framework as the business continues to grow.

With the Afterpay share price now up a mind-boggling 994% since the 23 March lows, shareholders will welcome the news of its strengthened compliance regimes.

More reading

• The niche ASX shares critical to fuelling the tech boom
• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 
• 3 ASX tech shares that pay dividends

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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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The Dubber Corp Ltd (ASX: DUB) share price has been a very strong performer on Wednesday.

The cloud-based call recording services provider’s shares were up as much as 16% to $1.30 at one point today.

They have since given back some of these gains but are still up 10% to $1.23 at the time of writing.

Why is the Dubber share price rocketing higher?

Investors have been fighting to get hold of the company’s shares following the release of its first quarter update this morning.

For the three months ended 30 September, Dubber reported solid growth across a number of key metrics.

According to the release, the number of subscribers of its services increased 20% or 38,062 on the prior quarter to 230,606. Over the 12 months, Dubber’s subscriber numbers are up 96%.

Management advised that this reflects organic growth in recording users from its pre-existing service provider partner networks.

This strong subscriber growth underpinned a 12% or $2 million quarterly increase in its annualised recurring revenue (ARR) to $18.1 million. This means its ARR is now up 77% since this time last year.

Also growing strongly was its quarterly revenue, which lifted 26% or $687,000 to $3.25 million.

Finally, Dubber’s cash receipts for the quarter came in at $2.7 million, which is up 64% or $1.1 million. The company ended the period with a cash balance of $16 million.

Outlook.

No guidance was given for the remainder of the year. However, management appears confident that it is well-positioned for the future.

It commented: “The Company believes that with the now accepted “new normal” of a distributed workforce, together with the resultant expectation levels for intelligent data services, there has never been a better time to operate a global scalable cloud-based platform.”

And thanks to its re-branding program and growth strategy, management believes the company is on a path to $100 million in ARR.

More reading

• Why the Afterpay Ltd (ASX:APT) share price broke its record high today
• The niche ASX shares critical to fuelling the tech boom
• Why the Clearview (ASX:CVW) share price is surging up today
• 3 top global ASX dividend share ideas
• How I’d make a passive income with just $100 a month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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) is slipping today, down 0.1% in early afternoon trade.

This comes after the index of the top 200 listed shares hit more than 6-month highs yesterday.

We’re told the impetus for today’s modest retreat is renewed doubts over the next round of United States government stimulus measures. These doubts saw the S&P 500 Index (SP: .INX) fall 0.6%. Though, mind you, that’s only 1.9% below its all-time highs.

We’ll spare you the details of the latest political gridlock in Washington DC. They’re really no different from last week. Or the week before.

What’s also no different is that the US government will pass new stimulus measures, potentially worth several trillion dollars. The only question is the timing.

As long-term investors, that timing shouldn’t concern us. If your investment horizon is at least three years, a few weeks or even months of political wrangling over the next spending package should be little more than a fading bump in the road.

Tech shares shining bright

Over in the US the tech-laden NASDAQ-100 (NASDAQ: NDX) proved largely immune to yesterday’s selling, closing flat (down 0.04%). That’s just 2.7% below the index’s 2 September record highs.

We see the same playing out here in Australia.

The S&P/ASX All Technology Index (ASX: XTX) – which tracks 50 of Australia’s leading and emerging technology shares – hit a fresh all-time high yesterday. And it’s up another 1.3% today.

The All Tech Index is enjoying a helpful boost from the likes of Afterpay Ltd (ASX: APT). The buy now, pay later (BNPL) giant has shrugged off doubts about would-be competitors and its valuation to once again be trading at its own record high share price.

So too cloud-based accounting software company Xero Limited (ASX: XRO). Gaining in intraday trading today, the Xero share price is up nearly 18% in October alone.

Budget offers fresh tailwinds

With many ASX tech shares at or near record highs, many investors fear they may have missed the boat. But there are a lot of reasons to believe the well managed companies in this sector, and indeed across most sectors in the ASX, can see their share prices run far higher.

According to Fidelity International cross-asset specialist Anthony Doyle, today’s ultra-low interest rate environment gives investors little choice but to turn to shares, which provide potential share price gains along with dividend payments.

Doyle says (quoted by the Australian Financial Review):

We haven’t breached that 7000 level which we saw earlier in the year but in relation to 1987, and 2009 certainly, the bounce back surpasses both of those episodes and one of the big reasons is the collapse in real yields…

We don’t believe that the market has rallied too hard. We don’t believe it has got ahead of itself. Indeed, particularly in the news last week coming from the budget, we’re pretty optimistic on the outlook for Australian equities…

What central banks are doing by dropping interest rates as low as they are is removing the power of compound interest from cash and defensive assets. Investors are herded into riskier, riskier assets in order to attempt to generate the returns that they once enjoyed from defensive assets.

David Bassanese, the Chief Economist at exchange-traded fund (ETF) manager BetaShares, believes the Aussie tech sector is a winner from the new budget.

As the AFR reports, Bassanese cites the government’s “new commitment to roll out ultra-fast broadband, push electronic invoicing within the public sector, streamline the business registration process and expand the digital identity system.”

Bassanese adds, “This may well see a significant bring-forward of investment spending, boosting sales of computer and office equipment, along with cars and trucks.”

We’ll leave cars and trucks on the table today and stick with tech shares.

The ASX shares defending our virtual world

Australia and most of the developed world have embraced five years of technological innovation in a matter of months following the pandemic outbreak.

That means it’s more important than ever we’re able to keep our personal, business and government data secure from cyber thieves and prying eyes.

According to Richard Price, the Chief Executive of South Australian defence agency, Defence SA (quoted by the AFR):

Mitigating and managing the risk of cyber attack by criminals is an essential activity for everybody these days. For businesses in critical infrastructure and critical supply chains, of which defence is one obvious example, the threats are much more sophisticated, persistent and patient.

There are a number of ASX shares involved in the business of cyber security. One you might wish to consider adding to your own portfolio is Tesserent Ltd (ASX: TNT).

Tesserent provides cyber security and networking solutions to businesses and government institutions across Australia.

The Tesserent share price is up a phenomenal 525% year to date. Shares hit an all-time high on 14 August. The share price is sliding today and is down 14% since the record high, potentially offering investors a profitable entry point.

More reading

• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 
• 3 ASX tech shares that pay dividends
• 2 unstoppable ASX shares to buy with $2,000

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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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The Clearview Wealth Ltd (ASX: CVW) share price has climbed higher today following a positive update on its Q1 FY21 performance.

The Clearview share price shot up 6% to an intra-day high of 35 cents early trading, before retreating to sit at 34 cents at the time of writing, up 3.03%.

About Clearview

Clearview is a financial services company with businesses that specialise in life insurance, wealth management and financial advice solutions.

The company has a network of experienced and accredited financial planners based throughout Australia. The main function of Clearview is to give financial advice on wealth accumulation, retirement strategies and on life insurance.

Robust Q1 performance

For the period ending September 30, the diversified financial services company provided a robust Q1 FY21 business update.

Underlying net profit after tax (NPAT) increased to $6.9 million in Q1, a jump of 355% on the prior corresponding period. The result was underpinned by continued growth of in-force life insurance portfolios to $276 million, up 8%.

Clearview noted the material improvement in profitability, driven by strong underlying claims performance in its life insurance segment. The increase represented $1.7 million in claims experience profit.

Lapses were higher than expected, however retention strategies employed by the company reduced the amount to a $0.3 million loss.

The fallout of COVID-19 is likely to further increase individual income protection claims, coming from secondary economic impacts (social and health challenges).

Clearview recorded a healthy balance sheet and recurring revenue base. Its net shareholder cash position stood at $281 million and is being investment conservatively.

Looking ahead

Clearview reiterated it was on track in the first quarter to meet its medium-to-long term performance objectives. The group is forecasting a NPAT guidance of between $20 million–$24 million for FY21.

The company sees FY21 as a base transitional year, in which the industry has shifted to rational pricing and sustainable product features. Clearview will focus on building customer loyalty, enhance product offering and investments in technology for ease of client use.

It is expected these measures will improve in underlying profit margins and return on capital.

Is the Clearview share price a buy right now?

The positive Q1 result is good news for Clearview shareholders after a disappointing run over the last two years. The company’s shares have fallen heavily since reaching as high as $1.60 in early 2018 to price at just 35 cents today. This is a downhill trend of almost 80% which began well before the pandemic brought the market down in March this year.

Despite the strong recent performance, I will be saving my money for other opportunities in the market that present a better risk/reward option.

More reading

• 3 top global ASX dividend share ideas
• How I’d make a passive income with just $100 a month
• EML (ASX:EML) share price rockets up 8% on investor briefing
• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Why the Shaver Shop (ASX:SSG) share price is up 8% today

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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I think that Aussie investors would be smart to look at global ASX dividend share ideas.

Australia has a reputation for dividend-paying shares because of the higher payout ratios as well as the bonus of franking credits.

However, if you focus on businesses that are mainly based in Australia (and New Zealand) then you’re missing out on the rest of the world economy.

Here are three ASX dividend share ideas to get income diversification from global sources:

Pacific Current Group Ltd (ASX: PAC)

Pacific is a global boutique asset management business which takes stakes in asset managers and helps them grow.

It has a portfolio of 15 specialist boutiques in Australia, India, Luxembourg, the US, and the UK.

Pacific’s underlying funds under management (FUM) has been growing at a strong rate recently. In FY20, asset manager GQG grew its own FUM from US$25.1 billion to US$44.6 billion. Carlisle and Victory Park also grew by 31% and 19% respectively.

Excluding boutiques sold and acquired during the year, Pacific’s FUM grew by 52% to $93.3 billion.

I count Pacific as a great ASX dividend share because the underlying earnings growth is helping its dividend. FY20 underlying earnings per share (EPS) went up by 18% to $0.44, helping the annual dividend jump by 40% to $0.35 per share.

At the current Pacific Current Group share price it offers a trailing grossed-up dividend yield of 8%.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This is a listed investment company (LIC) operated by Paul Moore and his investment team at PM Capital. The purpose of a LIC is to invest in other shares, make investment gains and then the LIC can pay dividends from those investment profits.

PM Capital Global Opportunities Fund looks to invest in good businesses at a good price which are being valued differently to their long term intrinsic value and will return to their ‘correct’ value over time.

At the moment some the holdings in its portfolio include Cairn Homes, Bank of America, Visa, MGM China Holdings, KKR & Co, Siemens and Freeport-McMoRan.

Its portfolio is invested in businesses right around the world. At the end of September 2020, around 60% of the portfolio was invested in businesses listed in the US, 29% in Europe, 6% in Asia (excluding Japan) and 5% in the UK. Remember that the underlying earnings of those holdings are mostly global, not just from one country.

I think, at the current PM Capital Global Opportunities Fund share price, it’s a global ASX dividend share to consider because it offers a grossed-up dividend yield of 6.3%. It has increased its dividend each year since 2016. It’s also valued at a 16% discount to the pre-tax net tangible assets (NTA) at 9 October 2020.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which aims to invest in the best businesses in the world.

It targets companies that can consistently exploit competitive advantages and earn good returns on capital.

Looking at its holdings, some of the businesses to make it into Magellan Global Trust’s portfolio are: Alibaba, Alphabet, Atmos Energy, Eversource Energy, Microsoft, Tencent, Facebook, Facebook, Visa, Mastercard and Reckitt Benckiser.

The portfolio is a combination of both defensive and ‘growth’ businesses. It has worked well. After fees, the trust has delivered annual outperformance of an average of 1.35% per annum compared to the MSCI World Net Total Return Index (AUD) since inception in October 2017.

I think it’s a solid idea as an ASX dividend share because it aims for a distribution yield of 4%. That handily beats what you can get from the bank at the moment. The distribution should grow as Magellan Global Trust’s net asset value (NAV) increases over time.

There are also some other top dividend ideas on the ASX worth looking into.

More reading

• 2 little-known ASX dividend shares to buy for income
• Get paid huge amounts of cash to own these ASX dividend shares
• Why Magellan Global Trust (ASX:MGG) could be a retiree’s dream share
• 3 ASX growth shares I’d buy today for growth and income
• How to generate $1,000 a month in dividends

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and PM Capital Global Opportunities Fund 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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Making a worthwhile passive income in retirement by investing just $100 per month may sound unlikely at first glance. After all, a substantial amount of capital is required from which to obtain even a modest income on a regular basis.

However, through regularly buying a diverse range of shares, you could build a surprisingly large nest egg. Over a long period, it could help to pay for your retirement and improve you overall financial prospects.

Making a passive income from cheap shares

The recent market crash may have dissuaded some investors from buying shares to make a passive income. However, the track record of the stock market suggests that buying cheap shares is a sound means of obtaining relatively high returns in the long run. The world economy has always recovered from recessions to return to growth. Similarly, depressed stock prices have offered buying opportunities for long-term investors ahead of their recovery.

As such, now could be the right time to start investing regularly in stocks. In many cases, high-quality businesses with competitive advantages over their peers and solid financial positions are currently trading significantly below their long-term average prices. This may provide investors with the chance to buy them at a price that is below their intrinsic values. In doing so, you could profit from their likely recovery and build a retirement nest egg that provides an income in older age.

Building a diverse portfolio of stocks

Of course, not all undervalued stocks will experience recoveries that allow you to make a passive income in retirement. Some companies will inevitably struggle to survive what could be a tough year for the world economy. Other companies may find it difficult to adapt to what seem to be rapidly-changing consumer tastes across many industries.

As such, it is important to diversify your portfolio across a range of stocks and sectors. This limits company-specific risk, which is a reliance on a small number of companies to produce your returns. A more diverse portfolio may also deliver higher long-term returns due to its exposure to a wider range of growth areas.

Regular investing

Buying cheap shares today may enhance your long-term returns and boost your passive income prospects. However, even the market rate of return could help you to enjoy financial freedom in older age.

For example, the stock market has delivered a high single-digit annual total return over recent decades. Assuming the same return on a $100 monthly investment would produce a portfolio valued at around $350,000 over a working life of 40 years. From that, an annual withdrawal of 4% would produce an income of $14,000.

Clearly, not every investor has 40 years left until they retire. However, the example serves to show that even obtaining the stock market average return over the long run can lead to a surprisingly large nest egg. Furthermore, by investing in a diverse range of cheap shares, you could beat the market and earn a higher passive income in retirement.

More reading

• 3 top global ASX dividend share ideas
• EML (ASX:EML) share price rockets up 8% on investor briefing
• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Why the Shaver Shop (ASX:SSG) share price is up 8% today
• Angry staff at ASX company take industrial action

Motley Fool contributor Peter Stephens 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.

The post How I’d make a passive income with just $100 a month appeared first on Motley Fool Australia.

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