Reliable dividend shares are hard to come by. The 4 major banks were always thought of as a reliable investment for income, right up to when they all deferred their dividends this year.

But as things are starting to become normal again, I believe these 4 great shares will provide reliable dividends, a great dividend yield, and a chance for share price growth.

Mining dividend shares

Not all miners pay dividends. In fact, the gold industry eschews them almost completely. St Barbara Ltd (ASX: SBM) is one of the highest paying of the large gold miners at a trailing 12 month (TTM) dividend yield of 2.68%.

Fortescue Metals Group Limited (ASX: FMG) pays one of the highest dividend yields of the large-cap mining companies. At the time of writing Fortescue has a TTM dividend yield of 7.14%. This is higher than iron ore rival, BHP Group Ltd (ASX: BHP) with a TTM of 5.97%. In addition, I believe Fortescue is currently selling at a good price anywhere under ~$15. 

Consumer discretionary

Harvey Norman Holdings Limited (ASX: HVN) currently has a TTM dividend yield of 5.97%. The company recently announced it would pay a special dividend of 6 cents a share on 29 June to any shareholder registered by 23 June. Aside from anything else, that is an additional payment of 1.7% on top of the regular dividend payments.

The company has seen its dividend payment increase year on year by around 9.4% over a 10 year period. In addition, it has a healthy 10-year average return on equity of 11.8%. Meaning it is pretty good at generating returns from its net assets.

Real estate dividend shares

Right now I really like Vicinity Centres (ASX: VCX) for a whole range of reasons. In particular, I think they did a good thing with their share placement recently. This helped them to reduce the company’s gearing from 34.9% down to 26.6%. In addition, it provided them with a cash and unused debt facilities war chest of $2.6 billion.

Be aware that they have deferred their current dividend due to the pandemic. However, the company has a history of reliable distributions and is tightly managed. At the time of writing Vicinity Centres had a TTM dividend yield of  10.16%.

The banks

The best dividend opportunity of the big 4 banks right now is Westpac Banking Corp (ASX: WBC). Although it has also deferred its decision on the current dividend, it had previously been a reliable dividend share.

At the time of writing Westpac is paying a TTM dividend yield of  9.62%. Moreover, while this company definitely has a few miles of bad road ahead of it, respected analysts have been saying it is undervalued. I believe it to be a very sound company with new management in place.

More reading

• Why the Wesfarmers share is beating the ASX 200
• How the ASX 200 can help first home buyers save for a deposit
• ASX 200 down 1.3%: Big four banks tumble, Afterpay tipped to go higher
• Where to invest $5,000 in an irrational market
• Next phase of bull market could see ANZ Bank outperform Afterpay

Motley Fool contributor Daryl Mather owns shares of Fortescue Metals Group Limited. 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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With so many quality blue chip shares to choose from on the Australian share market, it can be hard to decide which ones to buy.

To narrow things down I have picked out three blue chip ASX 200 shares which I think are standout buys. Here’s why I like them:

Goodman Group (ASX: GMG)

Goodman Group is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate globally. I think it is positioned perfectly for growth over the long term thanks to some very smart investments over the last decade. These include gaining exposure to the structural tailwinds of the ecommerce market with properties leased to the likes of Amazon and DHL. Based on how quickly online shopping is growing, especially after the pandemic, these assets are likely to be in demand for a long time to come. I expect this to underpin solid earnings and distribution growth throughout the 2020s. I think this makes it a blue chip share to buy.

REA Group Limited (ASX: REA)

Although times have been hard for this property listings company this year because of the pandemic, I’ve been very impressed at the resilience of its business model. Despite a sharp drop in property listings, it was able to reduce costs and grow its profits during the third quarter. The good news is that trading conditions are improving as social distancing restrictions ease and listing volumes appear to be recovering. I expect this to lead to REA Group’s profit growth accelerating in FY 2021 and FY 2022.

Telstra Corporation Ltd (ASX: TLS)

A final blue chip share to look at buying is Telstra. I like the telco giant due to its T22 strategy, which is aiming to turn the company into a leaner and lower cost operation. In addition to this, the return of rational competition in the telco market, the easing of the NBN headwind, and its leadership position in 5G are other reasons to be positive. The latter is expected to be a key driver of growth over the next few years and could help underpin modest profit and dividend growth from FY 2022 onwards.

More reading

• Why the Wesfarmers share is beating the ASX 200
• 5 things to watch on the ASX 200 on Friday
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended REA 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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The Wesfarmers Ltd (ASX: WES) share price is ahead of the S&P/ASX 200 Index (INDEXASX: XJO) year to date, over the past year, and over the past week. In fact, despite lockdowns and bushfires, the Wesfarmers share price is up by 4% year to date. 

Like JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN), Wesfarmers found itself well-positioned for the lockdowns.

The brands boosting the Wesfarmers share

Officeworks’ sales performance, up to the end of May for 2H20, rose by 27.8% against the prior corresponding period. This is a major step up from the 11.5% growth in 1H20. Similarly, Bunnings has seen its sales performance for 2H20 increase, so far, by 19.2% versus the 5.8% rise in 1H20.

This is a significant increase likely due to the company’s customers continuing to spend more time working, learning and relaxing at home. In a performance update on 9 June, the company claimed Bunnings had seen growth across all Australian trading regions and product categories. Pretty impressive.

Wesfarmers secret weapon

There are 2 secret weapons fueling the performance of Wesfarmers shares. First is the online company they purchased last year, Catch. Catch followed in the footsteps of permission marketing pioneer site, Daily Candy. The initial newsletter was ‘Catch of the Day’. Today it has evolved into an online marketplace. 

Catch is not just an e-commerce site to sell products from K-Mart or Bunnings. It is trying to compete directly with Amazon.com, Inc. (NASDAQ: AMZN) or Kogan.com Ltd (ASX: KGN). Moreover, it sells products directly in competition with Kogan.

Catch saw its 2H20 sales performance so far improve by an astounding 68.7% against the previous corresponding period. In contrast, 1H20 reported a gross sales increase of 21.4%. 

Across all their retail operations, Wesfarmers have seen total online sales growth of 89%. 

Strong management

The Wesfarmers management team has made quite a few tough decisions in recent time. They sold down their stake in the Coles Group Ltd (ASX: COL) at a near all-time high share price. In addition, they took the decision to close loss-making Target stores and to refocus on K-Mart and acted swiftly to permanently close 7 small-format Bunnings stores during the half.

Foolish takeaway

Wesfarmers unintentionally holds a range of assets which were perfectly suited to the recent lockdown. It has also bought a company that places it directly in competition with Kogan for growing online sales.

Lastly, Wesfarmers management have shown the capacity to make hard decisions. These include, as mentioned, closing underperforming Bunnings formats, releasing capital from Coles for business growth and closing the door on underperforming Target stores.

More reading

• Where to invest for reliable dividend shares
• Why I would buy Telstra and these ASX 200 blue chip shares
• 5 things to watch on the ASX 200 on Friday
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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.

The post Why the Wesfarmers share is beating the ASX 200 appeared first on Motley Fool Australia.

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If you’re interested in building your wealth, then I believe that thinking long term is the best way to do it.

This is because by investing with a long time horizon, you can benefit from the power of compounding.

This is essentially earning a return on your return, which accelerates the process. It explains why $50,000 generating an annual return of 10% per annum would turn into ~$130,000 in 10 years.

With that in mind, I have picked out three ASX shares that I believe could provide strong returns for investors over the next decade and beyond:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

I think the BetaShares NASDAQ 100 ETF is well worth considering. It provides investors with exposure to the 100 largest non-financial shares on the NASDAQ. This includes behemoths such as Amazon, Facebook, and Microsoft. As I believe the majority of the companies on this index have the potential to grow at a quicker rate than the global economy, I expect the ETF to provide investors with strong returns for many years to come.

NEXTDC Ltd (ASX: NXT)

Another ASX share I would suggest you look at is NEXTDC. It is a leading Data Centre-as-a-Service provider with a portfolio of world class centres in key locations across Australia. I believe the company is perfectly positioned for growth thanks to the structural shift to the cloud. Another positive is its recent $672 million equity raising, which will strengthen its balance sheet and fund its strategic expansion plans.

SEEK Limited (ASX: SEK)

I think this job listings company would be a top option for investors. While I’m a big fan of its ANZ business, I think its rapidly growing China-based Zhaopin business is the real reason to invest. In the first half Zhaopin contributed 47.8% of SEEK’s total revenue, compared with 25.6% by the ANZ business. Given how lucrative the China market is, I expect Zhaopin to underpin strong growth for many years once the crisis passes.

More reading

• 3 ASX shares I’d buy because of the online sales boom
• Will Xero shares and these 2 other ASX companies be portfolio staples by 2030?
• Looking to diversify your portfolio? Try these ASX ETFs
• Is the CSL share price a buy right now?
• Why these ASX shares could help you beat the market

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited and SEEK Limited. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ResMed Inc. (ASX: RMD) share price has been a very strong performer over the last 12 months.

Since this time last year the sleep treatment focused medical device company’s shares have stormed 43% higher.

Is it too late to buy ResMed shares?

I don’t believe it is too late to buy ResMed’s shares. In fact, I continue to believe it is one of the best buy and hold options on the local share market.

This is due to its industry-leading masks and software in an obstructive sleep apnoea (OSA) tipped to grow materially over the next decade and beyond.

One leading broker that is also a fan of the company is Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the company’s shares.

Why is Goldman Sachs positive on ResMed?

According to the note, Goldman hosted a call with ResMed’s management yesterday and notes that demand for OSA products has remained robust during the pandemic.

Goldman commented: “… we came away from the discussion comforted that the demand profile for OSA masks appears robust (indeed, elevated in many markets due to a heightened appreciation of respiratory care, and facilitated by effective access/distribution through Brightree/resupply).”

While it acknowledges that OSA diagnoses are down year on year, volumes are recovering quickly and are currently at approximately 85% to 90% of last year’s levels.

And the broker suspects that things could get better from here due to an unexpected consequence of the pandemic.

It explained: “In our view, an interesting development through this period is the potential for accelerated adoption of home diagnoses. Prior to Covid-19, this pathway constituted c.40% of new patient volumes in the US and, though greater reliance was initially borne out of necessity, the company is now seeing significantly more clinical/payor support than previously, potentially improving the overall penetration story through the mid-term.”

So, with research estimating that there could be almost 1 billion people globally with OSA, I feel this development bodes well for its future growth and leaves ResMed well-positioned to be a market beater again over the next decade.

More reading

• 5 things to watch on the ASX 200 on Friday
• Diversify your portfolio with 3 top ASX 200 shares from 3 sectors
• 2 ASX healthcare shares to buy for long-term growth
• You could beat the market in the 2020s with these ASX healthcare shares
• 3 companies with great intangible asset moats

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

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Although the All Ordinaries (ASX: XAO) index tumbled lower on Thursday, it didn’t stop some shares from pushing higher.

In fact, three shares were even able to race to new record highs. Here’s why these ASX shares are breaking records:

The A2 Milk Company Ltd (ASX: A2M) share price jumped to a record high of $20.05 on Thursday. Investors were buying the infant formula and fresh milk company’s shares after the release of a positive broker note. According to a note out of UBS, its analysts have retained their buy rating and NZ$22.00 (A$20.64) price target on its shares. The broker believes there is some upside risk to its earnings guidance for FY 2020 and suspects a new product could be launched in the not so distant future.

The Afterpay Ltd (ASX: APT) share price continued its remarkable run and reached a record high of $59.64. This latest gain appears to have been driven by a broker note out of Ord Minnett. Its analysts have retained their buy rating and almost doubled the price target on the buy now pay later platform provider’s shares to $64.70. According to the note, the broker believes Afterpay could have almost 10 million active customers using its platform by the end of the financial year. In addition to this, Afterpay has just revealed a partnership with Apple that sees its platform integrated into Apple Pay.

The Pushpay Holdings Ltd (ASX: PPH) share price stormed to a record high of $7.85 on Thursday. This latest gain means the donor management platform provider’s shares have now doubled in value since this time last year. Investors were buying Pushpay’s shares after it upgraded its earnings guidance for FY 2021 just six weeks after issuing it. At its annual general meeting the company revealed that it now expects EBITDA of US$50 million to US$54 million. This compares to its previous guidance of US$48 million to US$53 million and will be double FY 2020’s earnings.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• 3 undervalued ASX growth companies to add to your portfolio
• 3 stellar ASX mid cap growth shares to buy right now
• Pushpay share price jumps nearly 10% on updated guidance
• The a2 Milk share price just hit a record high: Is it too late to invest?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk and 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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If your risk tolerance allows you to invest in small cap ASX shares, then I think the ones listed below could be worth considering.

I believe all three small cap shares could be destined for big things in the future. Here’s why I think you should add them to your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap share to watch closely is Bigtincan. It is a fast-growing provider of enterprise mobility software. The company’s software allows businesses to increase their sales win rates, reduce costs, and improve customer satisfaction through improvements in mobile worker productivity. Demand for its software has been growing strongly in recent years and has continued during the pandemic. As a result, the company remains well-placed to deliver strong revenue growth in FY 2020.

Nitro Software Ltd (ASX: NTO)

I think Nitro Software is another small cap ASX share that is worth watching closely. Nitro is a software company which is aiming to drive digital transformation in businesses around the world across multiple industries. The main product in its portfolio is the the Nitro Productivity Suite solution. This solution provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Whispir (ASX: WSP)

A third and final small cap share that I think could have a bright future is Whispir. It is a growing communications platform as a service (CPaaS) provider which offers an industry-leading software platform. This clever platform allows organisations to deliver actionable two-way interactions at scale by using automated multi-channel communication workflows. Management notes that it has a long runway for growth. The CPaaS market is growing at a rapid rate and is expected to be worth US$6.7 billion per year by 2022.

More reading

• 3 exciting small cap ASX shares to watch closely in the 2020s
• EML Payments and these ASX mid cap shares could be destined for big things
• 3 small cap ASX tech shares that could be stars of the future
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• 2 exciting small cap ASX shares that could have big futures

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 BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nitro Software Limited, and Whispir 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index fell 0.9% to 5,936.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 looks set to end the week on a subdued note on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 4 points or 0.1% lower. This follows a mixed night of trade on Wall Street which has seen the Dow Jones fall 0.15%, but the S&P 500 rise 0.05% and the Nasdaq index climb 0.35% higher. This was the latter’s fifth straight gain.

Oil prices rebound.

It could be a strong finish to the week for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.5% to US$38.90 a barrel and the Brent crude oil price has pushed 2% higher to US$41.53 a barrel. Oil prices rebounded on OPEC+ output optimism.

Gold price edges lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on poor note after the gold price weakened. According to CNBC, the spot gold price is down 0.3% to US$1,730.50 an ounce. The price of the precious metal softened after U.S. jobless claims fell.

ResMed rated as a buy.

The ResMed Inc. (ASX: RMD) share price could go higher from here according to analysts at Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the medical device company’s shares. Goldman hosted a call with ResMed’s management yesterday and notes that demand for Obstructive Sleep Apnoea (OSA) products has remained robust during the pandemic.

Woodside given buy rating.

In addition to ResMed, Goldman Sachs is positive on Woodside Petroleum. It has reaffirmed its buy rating and $33.85 price target on the energy producer’s shares. This price target implies potential upside of 55.6% for its shares over the next 12 months.

More reading

• Why the ResMed share price could still go higher from here
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Reserve Bank of Australia almost halted property sales in April

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

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