The FlexiGroup Limited (ASX: FXL) share price will be on watch today after the financial services company released an update on its buy now pay later business.

What did FlexiGroup announce?

According to the release, the company’s buy now pay later offering has been growing in popularity during the pandemic. So much so, like rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), it has just passed a couple of milestones.

FlexiGroup has added over 380,000 new interest free instalment customers to its platform over the last 11 months. This has lifted its customer numbers to over 2.1 million, making it one of the largest instalment players in the ANZ market by both customer numbers and volume.

In respect to the latter, the company has processed $2 billion of transactions through its platform over the last 11 months.

Management revealed that this growth has been driven by the continued expansion of humm, along with its strategic partnership with Mastercard. The payment giant powers its interest free instalment products and enables customers to shop anywhere Mastercard is accepted.

Humming along very nicely.

The release advises that FlexiGroup’s digital offering has seen over 600,000 app downloads.

Positively, these apps are being opened more frequently than ever by consumers. The company notes that its payment products are used for purchases both small and large, with customers making an average of 9 purchases a year through its apps.

This led to online sales volumes for the humm platform increasing 103% in the first half and accelerating to 282% for the five months to May 2020.

The company’s Chief Executive Officer, Rebecca James, commented: “Our firm leadership position in interest free instalment transactions over $1,000, which is well in excess of the BNPL industry average, continues to be a strong differentiator.”

“We don’t believe in a one size fits all approach. Our services are designed not only with category specific features, but individually customisable payment options that empower each consumer to make their own decisions, set their own plan and ultimately stay totally in control of their own buying. It is this approach which continues to drive growth in high value verticals such as health, home and home improvement, and luxury goods,” she added.

The chief executive was particularly pleased with the frequency that customers are using its products.

She explained: “While we’ve added 380,000 new customers to our platform over the last 11 months, the most significant change is the number of times our customers are choosing to use our payment services – now 9 times a year and growing. This demonstrates that our strategy is well and truly working, and that our brands are now well entrenched with our customers.”

More reading

• Short-sellers are stepping up their attack against these popular ASX shares
• Top broker says this ASX stock is a better buy than Afterpay

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended FlexiGroup 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 BHP Group Ltd (ASX: BHP) share price climbed 1% yesterday while the S&P/ASX 200 Index (ASX: XJO) edged 0.03% higher to 5,944.50 points.

While the S&P/ASX 200 Materials (+1.68%) sector shares like BHP provided some strong gains, this was largely offset by a soft performance from the S&P/ASX 200 Info Tech (-1.76%) and S&P/ASX 200 Industrials (-2.35%) sectors.

One good day doesn’t necessarily make BHP a good investment, but is it worth another look at its current price?

Is it time to buy BHP shares?

I think BHP is an interesting company to look at buying right now. It’s currently the largest ASX share by market capitalisation and the Aussie miner is worth an incredible $167.6 billion.

The BHP share price has fallen 9.2% in 2020 but is starting to gain some momentum. BHP hit a new 52-week low of $24.05 in mid-March before nearly doubling to its current $35.36 valuation.

That means that many of the potential gains have been snapped up by brave investors in the recent bear market.

I think a lot of the potential BHP share price growth lies with fiscal policy in 2020 and 2021. If the government turns to infrastructure to fast-track an economic recovery that could be good news for BHP.

More construction means more steel, which means more demand for key inputs like iron ore. Government work is about as reliable as it gets, which means BHP shares could climb higher if we see some serious new investment.

The BHP share price is up 24% in the last 5 years, and I don’t think BHP is super cheap at $35.36 right now. However, with a company as old and large as BHP, you also have to account for dividends.

BHP is currently yielding a tidy 6% dividend, which is handy income for any retiree or even young investors looking to re-invest their gains for long-term growth.

Foolish takeaway

If you like reliable dividends then I think BHP shares could be a solid addition to a well-diversified portfolio.

The short-term outlook for iron ore prices is strong and the Aussie miner has been a blue-chip dividend share for decades.

Of course, nothing is guaranteed and it’s wise to only buy if you’re willing to hold on a long-term investment horizon.

More reading

• These ASX stocks might be a better option than Carsales.Com
• How to try and beat the market with ASX shares
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 finishes flat, ASX travel shares drop
• Afterpay and 2 more ASX 200 shares to watch this week

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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Over the past few days, it has dawned on me that the coronavirus situation is unlikely to change anytime soon. Like most other people I thought we would find ourselves opening up our own borders. Then opening up to New Zealand, and then slowly to the rest of the world.

However, judging by Victoria, things are not looking like they will play out this way. If we are going to continue managing this in a conservative manner then we may be taking 2 steps forward and 1 step back potentially for a very long time.

While none of us can really do anything about that, we can definitely shape our investment portfolios to match our circumstances. 

Local travel

I think that Alliance Aviation Services Ltd (ASX: AQZ) is going to be the only airline to make anywhere near decent earnings over the short term. Coronavirus makes it seem unlikely we will open all our borders and keep them open. Big carriers like Qantas Airways Limited (ASX: QAN) carry overheads that are designed for a much larger operation.

The other likely beneficiary of local travel is likely to be Bapcor Ltd (ASX: BAP), a distributor of car parts and services. 

Discretionary items

The likelihood of large venues opening and staying open until coronavirus has been defeated is also small I feel. This rules out a lot of the fast fashion purchases from Lovisa Holdings Ltd (ASX: LOV). Even though I think its sales will increase compared with April and May.

I think we will continue to see good sales volumes through shops like Bunnings and Officeworks; businesses owned by Wesfarmers Ltd (ASX: WES). Wesfarmers also owns Catch, an online marketplace it recently purchased. Catch has increased its sales turnover by 68.7% in H2 FY20 so far against the previous corresponding period.

Payment processing

Depending on your investment horizon it may still be too soon to invest in shares like the Commonwealth Bank of Australia (ASX: CBA). In fact, I would be cautious of any share requiring long-term credit commitments of the general public.

However, short term credit organisations like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) will likely continue to do well. Payment processing companies like Tyro Payments Ltd (ASX: TYR) will also continue to do well. None of these companies operate in a market that requires a total economic reopening. 

Foolish takeaway

The recent surge of coronavirus infections in Victoria has forced us to temper our expectations of how quickly we can open up the economy and our borders. I would consider focussing your investment portfolios on companies that have thrived over the past few months, rather than on companies that need a flawless return to normality. This isn’t meant to be negative, the market always throws us opportunities.

More reading

• How to try and beat the market with ASX shares
• ASIC hits Commonwealth Bank with civil proceedings
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 finishes flat, ASX travel shares drop
• Afterpay and 2 more ASX 200 shares to watch this week

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 Tyro Payments and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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Macquarie Group Ltd (ASX: MQG) is one of several ASX shares gaining in value in recent times.

The Macquarie share price has rocketed 9.7% higher in June but remains down 12.5% for the year. That is the sweet spot that I’m focusing on at the moment: ASX shares with positive momentum that could still be undervalued.

Here’s why Macquarie and a couple of others could be the secret gainers you’re missing out on right now.

3 ASX 200 shares gainers you’re missing out on today

 Of course, it’s not as simple as just buying shares that have fallen lower in 2020. There have to be some fundamentals behind a decision to buy or sell an investment. I think this exists with Macquarie.

The Macquarie share price has been climbing higher in recent months. While I don’t have a crystal ball, I do think Macquarie’s status as an investment bank could pay dividends this year.

Macquarie has several investment arms including Macquarie Capital and Macquarie Investment Management.

Those divisions could prove to be a double-edged sword. But I think recent market volatility could be a good thing for Macquarie’s investment teams to outperform.

That means the ASX 200 share could be a dark horse to announce a strong half-year result in October or November.

However, I’ve got my eye on more than just Macquarie right now. I’m also looking at the DEXUS Property Group (ASX: DXS) share price after its recent bullish run.

The DEXUS share price is up 10.2% in June but remains down 13.1% for the year. Dexus owns and operates a significant portfolio of Australian property with a strong focus in office and industrial real estate.

There could be some tough times ahead for office real estate with many companies still operating on a work from home model. That could drive down demand (and rent) which is bad news for ASX 200 REIT shareholders.

However, if we see a quicker bounce back to office culture, DEXUS could be a strong buy. Investors have been buying up DEXUS shares in recent months but it could prove to be a cheap income share at its current price.

Bendigo and Adelaide Bank Ltd (ASX: BEN) is another ASX 200 share that could be in the buy zone. The Bendigo Bank share price has rocketed 17.1% higher in June but is down 26.4% from where it started in 2020.

While changing office dynamics might be a headwind for the DEXUS share price, it could be good for Bendigo. More Aussies could look to move rural if office working arrangements become more flexible.

That could be good news for the ASX 200 bank share if regional centres see an uptick in growth. These things are far from certain right now but I’d be watching the Bendigo Bank share price closely in the second half of the year.

More reading

• Here are 3 ASX 200 shares with dividend yields over 8%
• Here are 3 Australian share market trends to watch this week
• ASX 200 Weekly Wrap: ASX back in the green
• What is the price/earnings (p/e) ratio?
• Consider these blue chip ASX shares for strong dividend yields

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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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Luckily in this low interest rate environment, the Australian share market has a large number of shares offering attractive dividend yields.

But which dividend shares should you buy? I think the three listed below would be great options for income investors:

Aventus Group (ASX: AVN)

The first dividend share to consider buying is Aventus. This retail property company specialises in large format retail parks across Australia. Given how Aventus’ rental income has a reasonably high weighting towards everyday needs, I think it well-placed to navigate the tough trading conditions facing the retail sector. This is a view I share with Goldman Sachs, which remains very positive on the company. So much so, it has forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~7.8% distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

As long as the recent spike in coronavirus cases in Victoria doesn’t get out of control, I’m optimistic domestic tourism will rebound strongly over the remainder of 2020. Especially given recent reports of pent up demand for travel in Australia after months of restrictions. This could put Sydney Airport in a position to start paying a decent dividend again in FY 2021. At this point, I expect the airport operator to pay shareholders a 29 cents per share dividend next year. This represents a forward 4.9% dividend yield based on its last close price.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you don’t have enough funds to maintain a truly diverse portfolio of dividend shares, then you might want to consider buying the Vanguard Australian Shares High Yield ETF. This exchange traded fund provides investors with exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the big four banks, telcos, and shares like Sydney Airport. At present I estimate that its units offer a forward dividend yield of at least 4.5%.

More reading

• ASX 200 finishes flat, ASX travel shares drop
• The ASX stocks worst hit by second wave COVID-19 fears
• These 5 ASX shares saw the biggest losses last week
• ASX share price winners and losers of last week
• ASX 200 Weekly Wrap: ASX back in the green

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

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The Commonwealth Bank of Australia (ASX: CBA) share price could be one to watch on Tuesday after a late announcement out of the banking giant on Monday afternoon.

What did Commonwealth Bank announce?

After the market close on Monday, Commonwealth Bank announced that it had been hit with further civil action.

According to the announcement, civil proceedings have been brought by the Australian Securities and Investments Commission (ASIC) against the banking giant and its wholly owned Colonial First State Investments Limited business.

Colonial First State is a provider of superannuation, investment, and retirement products to individuals and corporate and superannuation fund investors. It is also the operator and administrator of investment platforms.

In May, Commonwealth Bank announced that it had entered into an agreement to sell a 55% interest in Colonial First State to KKR. The transaction implies a total valuation (on a 100% basis) of $3.3 billion, which will result in the bank receiving cash proceeds of approximately $1.7 billion from KKR if the deal completes next year.

What is ASIC alleging?

The civil proceedings that have been brought by ASIC are based on findings during the Royal Commission.

The corporate regulator alleges certain contraventions of conflicted remuneration provisions in the Corporations Act relating to the arrangement between the two parties for the distribution of Commonwealth Essential Super.

Here’s a snippet from the Royal Commission hearing:

“Counsel Assisting submits that it is open to the Commission to find that the Distribution Agreement between CBA and CFSIL may have contravened the conflicted remuneration provisions of the Corporations Act.”

“This is because the Distribution Agreement provides for a benefit (an annual fee of 30% of the total net revenue earned by the trustee in relation to the fund) given to an AFS licensee (CBA) which, in Counsel Assisting’s submission, could reasonably be expected to influence the financial product advice given by CBA to its retail clients.”

The bank and Colonial First State are reviewing ASIC’s claim and will provide any further update as required.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Morgans is urging investors to buy ASX big bank stocks today
• Consider these 2 ASX fintech shares before they take off
• The NAB share price has fallen 24%. Should you buy?
• ASX 200 Weekly Wrap: ASX back in the green

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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index edged ever so slightly higher to 5,944.5 points.

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

ASX 200 expected to rise.

It looks set to be a positive day of trade for the ASX 200 on Tuesday after U.S. stocks pushed higher. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. Overnight on Wall Street the Dow Jones pushed 0.6% higher, the S&P 500 rose 0.65%, and the Nasdaq index jumped 1.1%.  

Oil prices jump.

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher today after oil prices started the week strongly. According to Bloomberg, the WTI crude oil price is up 2.15% to US$40.60 a barrel and the Brent crude oil price is 2.05% higher to US$43.06 a barrel. This is the first time the WTI crude oil price has been over US$40 a barrel since March.

Gold price higher.

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) look set to continue their positive runs on Tuesday. According to CNBC, the spot gold price is up 0.75% to US$1,765.90 an ounce after demand for the safe haven asset increased following an uptick in coronavirus cases.

Challenger set to return.

The Challenger Ltd (ASX: CGF) share price looks likely to return from its trading halt this morning. The annuities company requested the halt on Monday while it undertook a $300 million equity raising. These funds will be raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. The proceeds will be used to further strengthen its capital position and provide flexibility to enhance earnings.

Commonwealth Bank hit with civil proceedings.

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today after a late announcement out of the bank on Monday. That announcement revealed that civil proceedings have been brought by ASIC against the bank and its Colonial First State Investments business. The claim alleges certain contraventions of conflicted remuneration provisions in the Corporations Act relating to the arrangement between the two parties for the distribution of Commonwealth Essential Super.

More reading

• ASIC hits Commonwealth Bank with civil proceedings
• ASX 200 finishes flat, ASX travel shares drop
• Afterpay and 2 more ASX 200 shares to watch this week
• The ASX stocks worst hit by second wave COVID-19 fears
• Is the Challenger share price 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 Challenger 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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