The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has surged nearly 80% from its lows in late-March and is currently trading near record highs. The positive price action reflects how high demand for convenience food has been during COVID-19 lockdowns.

Here’s why the Domino’s share price has my attention for 2020 and beyond.

How did Domino’s perform during the pandemic?

At the height of the pandemic, Domino’s was forced to close all stores in its nine markets. Apart from France and New Zealand, where even takeaway orders were banned, the company could only operate to provide delivery and online orders. In order to maintain health and safety standards during the height of COVID-19, Domino’s implemented a range of initiatives including ‘zero-contact’ delivery.

In the company’s last update in late April, Domino’s noted that operations in France and New Zealand were progressively re-opening. The company also highlighted that operations in Japan and Germany saw strong sales performance, whilst same store sales in Australia remained positive but noted that stores were being affected unevenly.

Why the Domino’s share price has my attention

Domino’s Pizza in the United States recently reported its full-year results which was highlighted by a 16% increase in same-store sales. Although Domino’s in Australia and the US are two separately listed entities, the company’s performance in the US could reflect similar consumer behaviour in other markets. In a trading update in April, Domino’s Australia reiterated its target for 3% to 6% annual, same-store sales growth and a 7% to 9% increase in new stores each year over the medium term.

In my opinion, there are multiple tailwinds that could benefit the Domino’s share price in 2020 and beyond. The pandemic has forced consumers to turn to brands that they can trust to uphold hygiene and delivery standards. In addition, with economic conditions in the future looking volatile, the affordable goods offered by Domino’s could become more appealing.

The pandemic has also accelerated the shift to online with operational markets reporting a material shift to food delivery demand. This has resulted in stores hiring more team members to help adapt to the change. In addition, the pandemic has reinforced the fortressing growth strategy of Domino’s which involves opening more stores in existing sales areas. With large seating restaurants expected to continue suffering post-COVID, this strategy could help Domino’s through its operation of smaller stores whilst also decreasing its delivery times.

Is the Domino’s share price a buy?

Domino’s is expected to report its full-year earnings for FY20 on Wednesday 19 August. The company has not provided any short-term earnings guidance, so I feel the most prudent strategy would be to wait on the side-lines before investing.

More reading

• Top brokers name 3 ASX shares to sell today
• a2 Milk and 1 other quality ASX 200 share to buy and hold beyond 2026
• The blue chip ASX shares to buy in August
• Get rich with these stellar ASX growth shares
• Why Morgans thinks the Afterpay share price could be a reporting season hero

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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ASX companies are due to report their full year results this month. It is the first ASX earnings season since the onset of the coronavirus pandemic and will reveal the financial damage wrought by the virus thus far.

The S&P/ASX 200 Index (ASX: XJO) ended July lower as investors looked toward the August earnings season with trepidation. Share prices bounced back strongly from their slump in March at the start of the pandemic impact, with the ASX 200 up 29.7% from its March low.

But ASX share prices need to be supported by earnings. And earnings are likely to have taken a hit for a number of companies. Here’s what we’re looking out for this ASX earnings season. 

ASX earnings season surprises and shocks 

The sudden and unexpected onset of the pandemic hit many businesses unprepared – this ASX earnings season will be unique in terms of the impact of the pandemic on shares.

While some businesses saw sales drop sharply, others (especially those leveraged to ecommerce) saw a rise in sales. Many companies withdrew earnings guidance at the onset of the pandemic. Six months in, the effects on both FY20 results and future guidance on ASX shares should be much clearer.

Future earnings are key

The price of a share should, theoretically, be the present value of the future cash flow expected from that share. Because of this, expected future earnings are often a much more important influence on the share price than current earnings.

The onset of the pandemic caused a one-off economic shock, but what ASX share investors want to know is what the future looks like. The ongoing impacts of the pandemic mean some companies will need to shift or pivot strategy. Given the turbulent six months investors have endured, they will be looking for some comfort in future earnings guidance. 

While the pandemic has obviously had a severe negative impact on  travel shares such as Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT), it has actually had a positive impact on other ASX shares.

ASX earnings season winners

Lockdowns have accelerated the shift to online shopping, working, and living. This has resulted in booming sales for the likes of Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW).

Life in a COVID-19 world has also accelerated customer adoption of buy now pay later solutions like those operated by Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).

More reading

• Why Alliance Aviation, Cochlear, Kogan, & Netwealth shares are storming higher
• Is the Afterpay share price a boom or bust?
• How these ASX investors made 60% in three months
• These are the 10 most shorted shares on the ASX
• Top ASX Stock Picks for August 2020

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, and 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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It may no longer be Christmas in July, but if you need to buy a gift for a loved one, why not buy them some S&P/ASX 200 Index (ASX: XJO) shares. It’s a gift that can pique interest in investing for beginners or be highly valued by the investment nerd in your life. 

With the ASX 200 still down around 17% since 20 February, now could be the perfect time to gift this top retail ASX 200 share to your friends or family members. 

Wesfarmers Ltd (ASX: WES) – The retail conglomerate

Wesfarmers may have multiple subsidiaries in diverse sectors such as industrials and chemicals, but for the most part, the business is driven by a host of top retails brands like Bunnings, Officeworks and Kmart.

The Wesfarmers share price has beaten the market since the February highs, sitting nearly flat at $46.20 at the time of writing. I think that the Wesfarmers share price can continue to be a market beater over the long term due to management’s strong track record of efficient capital allocation.

Capital allocation is key

As a conglomerate, Wesfarmers buys, holds and sells businesses based on its own, in-house investment analysis. Given the current climate, the most notable example of a recent Wesfarmers acquisition is catch.com.au. Although no-one could have foreseen COVID-19 and the acceleration of eCommerce, Wesfarmers identified a growing trend and moved into the online-only retail market. I think this is a smart hedge against the company’s current bricks-and-mortar retail operations and also provides some synergies and cross-selling opportunities with its other brands.

What to watch in full year earnings

I also expect continued strength from the Bunnings group, when Wesfarmers releases its 2020 full year results on 20 August 2020. Bunnings has been a significant driver of both revenue and profit growth over a number of years. With lockdowns across the country, I expect the number of DIY projects to have risen, providing strong demand for Bunnings products.

Wesfarmers share price valuation

The Wesfarmers share price currently trades on a trailing price-to-earning (P/E) ratio of around 24 x earnings and a dividend yield of 3.3% or 4.7% grossed-up for franking credits.

I think this is a fair price to pay for investors looking for a stable, long-term dividend payer. Over the last 20 years, Wesfarmers has produced an annualised total return of 10.7% per annum.

Foolish bottom line

With so much bad news in the world, and social restrictions back in place in some states, share some cheer with your friends and family by buying them this quality retail ASX 200 share.

More reading

• 2 ASX shares that have benefitted from measures to reboot the economy
• Why ASX bank stocks are the worst performing group today
• ASX 200 up 0.1%: Big four banks tumble, Flight Centre sinks, SEEK cancels final dividend
• Is the Transurban share price a buy right now?
• Analysis: Is the Woolworths share price good value in August?

Motley Fool contributor Lloyd Prout has no position in any of the stocks mentioned and expresses his own opinion. The Motley Fool Australia owns shares of 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.

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The S&P/ASX 200 Index (ASX: XJO) has bounced back from a sizeable morning decline and is pushing slightly higher this afternoon. At the time of writing the benchmark index is up 0.1% to 5,934.6 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

The Alliance Aviation Services Ltd (ASX: AQZ) share price has jumped 7% to $3.34. This morning the airline operator announced an agreement with Azorra Aviation to expand its fleet. This will see the company purchase 14 Embraer E190 aircraft, including a significant package of related inventory, ground support equipment, tooling, and training devices. Management commented: “This acquisition is more than opportunistic, it underpins our expected growth.”

The Cochlear Limited (ASX: COH) share price has stormed 5% higher to $199.58. Investors have been buying the hearing solutions company’s shares despite there being no news out of it today. However, with its shares down 21% from their 52-week high, some investors may believe they are in the bargain bin.

The Kogan.com Ltd (ASX: KGN) share price is up 8.5% to $18.09. This ecommerce company’s shares have been in demand with investors on Monday after the Victorian state government announced a six-week lockdown. With non-essential retail stores to close across the state, more and more spending looks set to shift online. This bodes well for ecommerce companies like Kogan.

The Netwealth Group Ltd (ASX: NWL) share price has risen 5% to $12.61. The investment platform provider’s shares have been in fine form of late thanks to a strong fourth quarter update. So much so, Netwealth was the best performer on the ASX 200 in July. At the end of the fourth quarter, its funds under administration (FUA) had climbed to a sizeable $31.5 billion. This means the company grew its FUA by $8.2 billion or 35% during the financial year.

More reading

• Which shares to watch this ASX earnings season
• ASX 200 up 0.1%: Big four banks tumble, Flight Centre sinks, SEEK cancels final dividend
• These were the best performing ASX 200 shares in July
• Top ASX Stock Picks for August 2020
• 7 ASX shares to watch this reporting season

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 Cochlear Ltd. and Kogan.com ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Cochlear Ltd. and Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The old saying about ‘all boats rising on an incoming tide’, applies equally when it comes to listed shares. Even ‘not so good stocks’ get a leg up when the bulls are running, and the opposite also tends to be true.

The fundamentals have been thrown out the window in response to the COVID-19 crisis. As a result, we’ve seen that many ASX shares have become beneficiaries of JobKeeper, Jobseeker, plus central bank policies, and other government stimulus measures.

Depending on sector, some ASX shares are more directly riding the coattails of the measures to prop up our ailing economy. Revelations of further stimulus measures, including the continuation of JobKeeper well into next year, represents more ‘pennies from heaven’ for some ASX shares.

Australians are spending more on the basics

Recent Australian Banking Association figures show that 429,900 mortgages had been deferred, totalling $153.5 billion, since mid-May. But during this time, a number of measures have also turbocharged household spending. These measures include JobKeeper and JobSeeker payments. Adding further stimulus to spending, 1.4 million people have tapped into $10,000 of super, while a selected cohort of Australians have also received a $750 lump sum payment from the federal government.

As a result, during the pandemic we’ve seen food delivery, hardware, and online electronics retailers receive the strongest kickers of all the ASX sectors, aside from healthcare. For example, based on data gathered by AlphaBeta Australia, spending on food delivery was 230% higher than normal in the week of 11 to 17 May. It has also been 200% above normal for 3 consecutive weeks. With people spending so much more time at home, spending on DIY jobs is up to 40% above normal.

I’ve identified 2 ASX shares that I believe will continue reaping the benefits of these stimulus measures.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price has bounced from a low of $2.40 on 27 March to its current price of $6.10, after soaring as high as $8.28 per share in early July. Sales during the height of coronavirus pandemic (nationally), between 24 February and 15 March were up 15.1% compared to the same period in 2019. Cleaning, groceries, toiletries and pet care proved to be the strongest categories.

The $64,000 question is whether the discount variety retailer can continue to sustain this growth over the longer-term. All eyes will be on the 2021 guidance that accompanies its full year result.

While Reject’s 351 stores across Australia have combined annual sales of $900 million, a slide in earnings over the last 3 years can be attributed to the overstocking of too many low-margin items that simply haven’t been moving off the shelves fast enough. New CEO Andre Reich plans to staunch this slide in earnings by shrinking the product range by as much as 75%, and cutting inventories by a third.

The share’s recent upgrade by Morgan Stanley to overweight is encouraging, and based on Morningstar’s analysis the Reject Shop share price is undervalued, with fair value set at $8.28.

Wesfarmers Ltd (ASX: WES)

Unlike a lot of stores, Wesfarmers kept its 4 retailers Kmart, Bunnings, Target and Officeworks open for trading during the coronavirus pandemic. That didn’t stop the Wesfarmers share price from tumbling from $47.25 on 20 February to a COVID-19-induced low of around $31.02 per share on 23 March.

But it has since regained virtually all its lost ground to trade at $46.23.

In testimony to its resilience during the worst of the pandemic, the iconic Australian retail group’s Bunnings and Officeworks stores experienced significant sales growth. They recorded 19.2% and 27.8% jumps, respectively, in the quarter ended June 2020. Equally important, Kmart and online marketplace Catch, also recorded growth in the second quarter.

Only Target registered a (minor) drop in sales. Management expects nearly half of its Target stores to close or be converted into the more successful Kmart model. It’s also using the COVID-19 opportunity to renegotiate lease terms around Australia.

Wesfarmers has already tipped the market to expect its full financial year report on online sales across all of its brands – on a fiscal year-to-date basis – to be up 60% to $1.9 billion. Confirmation of this result when it reports its full year result on 20 August, plus any supporting commentary outlining future plans for Kmart and Catch could push the share even higher.

Trading at a price-to-earnings ratio of around 24x, Wesfarmers shares aren’t cheap. Yet there I think there are some drivers of future share price appreciation. These include: a) additional upside from a continued improvement of its existing businesses; and b) the launch of Bunnings’ full digital offering in 2020, which is likely to significantly boost margins and sales.

More reading

• My top retail ASX 200 share to gift right now
• Analysis: Is the Woolworths share price good value in August?
• 7 ASX shares to watch this reporting season
• The rocketing Aussie is shaping up as a new threat to the profit season
• Coles and Wesfarmers share prices reach for new highs. Should you invest?

Motley Fool contributor Mark Story has no position in any of the shares mentioned. The Motley Fool Australia owns shares of 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.

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The ASX banking sector is leading the S&P/ASX 200 Index (Index:^AXJO) lower this morning on fears of a bad debt blowout.

Even though the top 200 index is recovering from the early sell-off and is trading just under breakeven at the time of writing, big bank stocks are still deep in the red.

The hard lockdown of Victoria is souring sentiment towards these big lenders. The Victorian Premier Daniel Andrews is expected to announce widespread business closures in the state later this afternoon.

Bad debt risks just got worse

Investors are “selling the rumour” on speculation that many more businesses are unlikely to survive the strictest COVID lockdown in the country.

The National Australia Bank Ltd. (ASX: NAB) share price and Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price are the worst hit of the big four. They have shed close to 4% each.

The Westpac Banking Corp (ASX: WBC) share price is faring a tat better with a loss of 3.1%, while the Commonwealth Bank of Australia (ASX: CBA) share price declined 2.2%.

This is probably because NAB has the largest exposure to small and medium business (SMB) lending. Meanwhile, APRA data showed ANZ Bank is leading the group in growing its business lending business in the past three months. Talk about bad timing!

Looming fiscal cliff

Even before stage four restrictions were imposed, experts were divided on whether ASX banks held enough capital to buffer their balance sheets from the first wave of the COVID-19 fallout.

While the big four are well capitalised, investors (and probably the banks themselves) are having a tough time quantifying the risk of the looming fiscal cliff.

This cliff represents the withdrawal or tapering of the support measures to support the economy runs out in October.

State of disaster

The latest Victorian defeat by coronavirus will exacerbate the chances that more businesses and mortgagees will default on loans.

The Victorian economy represents around a quarter of Australia’s GDP. If most businesses are force to shutter for six weeks, the fallout will be felt well beyond the state’s borders.

But before you hit the “sell” button on ASX banks, there’s a chance the industry could dodge a bullet.

Should you sell ASX bank stocks now?

Daniel Andrews is pushing the federal government to offer extended support for the state – maybe by keeping the JobKeeper and JobSeeker at current levels till next year instead of tapering both programs.

There are reports that federal Treasurer Josh Frydenberg isn’t keen on changing the rate. He may instead make it easier for Victorian businesses to qualify for the scheme.

Victoria is also expected to pump additional stimulus to keep households and SMBs from going to the wall.

There’s still too much we don’t know, so it’s probably better to wait for more details before deciding on what to do with your ASX bank holdings.

One thing I do believe though is that CBA’s share price will keep outperforming its peers in this fast-moving environment.

Most brokers have a “sell” rating on the stock as its valuation is significantly ahead of its peers. But the reason for this is because it’s the safest of the big four.

At this point in time, it’s worth paying more for safety.

More reading

• ASX 200 up 0.1%: Big four banks tumble, Flight Centre sinks, SEEK cancels final dividend
• Is the Transurban share price a buy right now?
• Why ANZ, Flight Centre, SEEK, & Tabcorp shares are dropping lower
• Analysis: Is the Woolworths share price good value in August?
• How these ASX investors made 60% in three months

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start and is edging higher. The benchmark index is currently up 0.1% to 5,933.1 points.

Here’s what is happening on the market today:

Victoria’s “State of Disaster” weighs on shares.

On Sunday the Victorian state government declared a “State of Disaster” and locked down the state. This has put a lot of pressure on certain areas of the market on Monday such as the banking and travel sectors. For example, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price and the Flight Centre Travel Group Ltd (ASX: FLT) share price are down 3.5% and 6%, respectively.

No final dividend for SEEK shareholders.

The SEEK Limited (ASX: SEK) share price has dropped lower on Monday after it announced that it would be cancelling its final dividend for FY 2020. The job listings giant made the move as it believes it is better to preserve capital in an uncertain environment to fund its long-term growth strategy. This means the 13 cents per share interim dividend paid last month, will be the only dividend paid in FY 2020.

Tabcorp’s billion-dollar impairment charges.

The Tabcorp Holdings Limited (ASX: TAH) share price has recovered from a sharp early decline and is trading almost flat at lunch. This morning the gambling company announced that it expects to incur non-cash goodwill impairment charges in the range of $1,000 million to $1,100 million in FY 2020. These charges relate to its Wagering & Media and Gaming Services businesses, which have been impacted by the pandemic. Tabcorp also revealed that it expects to report a net profit before tax and significant items in the range of $267 million to $273 million. This will be a 31% to 32.5% decline year on year.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Monday has been the Cochlear Limited (ASX: COH) share price. The hearing solutions company’s shares are up 5% despite there being no news out of it. The worst performer has been the Monadelphous Group Limited (ASX: MND) share price with a decline of over 7%. This morning it was hit with legal action by Rio Tinto Limited (ASX: RIO). The mining giant is seeking $493 million in lost earnings and damage for a fire incident in Cape Lambert.

More reading

• Why ASX bank stocks are the worst performing group today
• Is the Transurban share price a buy right now?
• Why ANZ, Flight Centre, SEEK, & Tabcorp shares are dropping lower
• Analysis: Is the Woolworths share price good value in August?
• SEEK share price tumbles after cancelling its FY 2020 final dividend

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Flight Centre Travel Group Limited, and 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 Domain Holdings Australia Ltd (ASX: DHG) share price closed 2.9% lower on Friday, but could it be headed lower?

Why is the Domain share price under pressure?

There have been no new ASX announcements from the real estate media and technology group since July 1.

However, investors were keen to sell down their holdings with the Domain share price down 10.5% for the year.

I would think there is a strong correlation between housing market expectations and Domain’s value. A bull market for residential property is good for property listings as buyers and sellers are keen to interact.

However, there are signs that the Aussie housing market could be under pressure.

One article in the Australian Financial Review (AFR) caught my eye on the weekend.

Weak auction clearance rates have some commentators expecting a housing market correction later this year and in early 2021.

Domain recorded just 285 Melbourne homes listed for sale this week, down 36% from the previous week. That’s also the lowest number in two months with a preliminary clearance rate of just 58%.

The numbers were higher in Sydney with 508 auction listings at a clearance rate of 66%. Of course, listings and clearance rates are not the be-all and end-all of housing market strength.

These numbers do, however, provide some food for thought. The Domain share price dropped 2.9% on Friday but I think it’s worth looking ahead to the August earnings result.

CoreLogic data suggested home prices values to be down an average 1.1% in Melbourne and 0.8% in Sydney.

That could mean sellers think twice before listing their property in the current market. There’s also the coronavirus impact to consider as buyers consider their job security and ability to take on leverage right now.

What can we expect in August?

Despite some question marks, there is still strong support for Aussie property in 2020.

The government stimulus package continues to roll out, which is good for construction, renovation and the property market as a whole.

That, combined with homeowners wanting to sell near the top, could be good for Domain’s August result.

With the Domain share price down 10.8% this year, I think investors are bracing for some more bad news.

However, any signs of market strength or medium-term earnings growth could see the property group’s value climb in August.

More reading

• A top ‘coronavirus share’ to buy this August
• Why Domain, OceanaGold, Praemium, & TechnologyOne are tumbling lower
• ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide
• These were the worst performing ASX 200 shares last week
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble

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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On Friday, the Transurban Group (ASX: TCL) share price fell 2% to $13.81 per share. The stock broadly followed the S&P/ASX 200 Index (ASX: XJO), which also lost 2% Friday.

The Transurban share price is down in morning trade today, and is currently sitting at $13.67 per share with a market capitalisation of $37.39 billion. Transurban shares have bounced back sharply from their 19 March low (up by 36.15%), but the Transurban share price still down 8.3% year-to-date.

Transurban has an annual dividend yield of 3.4% and will pay its next dividend of 16 cents on 14 August. It’s too late to get in on that payment now, but while its dividends have fallen since the onset of national lockdowns, the company has a long track record as a reliable yield stock.

What does Transurban do?

Transurban is one of the world’s largest toll road operators. It also designs and builds new road projects. The company is Australian owned and active in Melbourne, Sydney and Brisbane. It also operates in Montreal, Canada, and Greater Washington in the United States (US).

If you’ve popped onto the major freeways in New South Wales, Victoria or Queensland, you’ve probably paid Transurban for the privilege.

What’s next for the Transurban share price?

With the coronavirus crisis shifting on an almost daily basis, it’s impossible to say what the short-term impact will be on any Aussie stocks.

But if you’re looking for a share to add to your long-term holdings, I think Transurban should be near the top of your list.

Social distancing and lockdowns in the US, Canada and Australia have had a major impact on the company’s 2020 revenues. The company’s 2020 financial year results will be released on 12 August, so stay tuned. And with Victoria entering the most restrictive lockdown measures in Australian history, the coming months will likely see more pain ahead for its toll revenues.

But longer term, which is where I think investors should be concentrating, the impact of this virus should see people in the major cities turning away from public transport and more inclined to use their own cars, in my view. There’s nothing like your boot and bonnet to maintain a safe distance.

More reading

• Analysis: Is the Woolworths share price good value in August?
• How these ASX investors made 60% in three months
• AMP and 2 other ASX 200 shares to watch this week
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing shares on the ASX 200 in July

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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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