The Telix Pharmaceuticals Ltd (ASX: TLX) share price is racing higher again on Wednesday after the release of two positive announcements.

At the time of writing, the nuclear medicine-focused biopharmaceutical company’s shares are up 9% to $4.07.

This means the Telix share price is now up 166% year to date.

What did Telix announce?

The first announcement reveals that the US Food and Drug Administration (FDA) has approved the institutional use of Ga-PSMA-11 at the University of California, Los Angeles (UCLA) and the University of California, San Francisco (UCSF) under an academic New Drug Application (NDA) submission.

Management notes that this is a highly anticipated event within the US nuclear medicine industry. It paves the way for the FDA to approve commercially available products, enabling the broader availability of this technology to American men with prostate cancer.

Telix’s CEO, Dr. Christian Behrenbruch, commented: “We offer our congratulations to Drs. Hope, Czernin, and Calais at UCSF and UCLA for their success in achieving this limited institutional approval for 68Ga-PSMA. Their efforts pave the way for broader commercial dissemination of this important technology, and they have been fundamental to physician and regulator education of the importance of advanced prostate imaging techniques using nuclear medicine.”

What else was announced?

Telix also announced that it has been granted Human Research Ethics Committee (HREC) approval and received Clinical Trial Notification (CTN) clearance by the Therapeutic Goods Administration (TGA) to commence its first-in-human Phase I study of its next generation prostate cancer therapy product TLX592, in patients with advanced prostate cancer.

Like Telix’s existing TLX591 antibody development program, TLX592 targets prostate specific membrane antigen (PSMA), which management notes is a target that is almost ubiquitously expressed by prostate cancer cells.

TLX592 has been engineered to clear far more rapidly from a patient’s circulation, making it suitable for use as a targeting agent for actinium-225. Actinium is a potent therapeutic alpha emitting radionuclide and treatment.

According to the release, the Phase I “CUPID” study is a single centre, open-label trial that will evaluate the safety and tolerability, pharmacokinetics, biodistribution, and radiation dosimetry of TLX592 in patients with advanced prostate cancer.

Dr. Behrenbruch commented: “We are delighted to have been granted approval to commence the Phase I CUPID study for TLX592. Telix’s proprietary RADmAb technology fundamentally underpins our ability to develop new TAT treatments for patients with metastatic cancer.”

“In the case of TLX592, the clinical objective is to treat patients with prostate cancer that have a low disease burden for which alpha therapy is ideally suited, as well as potentially treating patients that no longer respond to conventional lutetium PSMA therapy. Telix has one of the broadest TAT pipelines in the industry and we are pleased to see our R&D efforts heading into the clinic,” he concluded.

More reading

• Why Afterpay, Bega Cheese, Humm, & Telix shares are storming higher
• Telix (ASX:TLX) share price storms 8% higher to record high on acquisition news
• Why these All Ords shares have almost doubled in value this month
• Why Brickworks, Mesoblast, Qantas, & Telix shares are storming higher
• Why the Telix (ASX:TLX) share price is surging 8%

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. 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 Spirit Technology Solutions Ltd (ASX: ST1) share price has more than doubled this year following a series of acquisitions and the achievement of triple digit revenue growth. The Spirit share price will be one to watch today after the internet and IT provider delivered a market update and announced the acquisition of Intalock, one of Australia’s leading cyber security services businesses.

About Spirit 

Spirit has developed its own advanced, fixed wireless network which provides Australian small to medium-sized businesses (SMBs) with sky-speed internet, along with managed IT services and cloud-based business solutions. The company is rated as Australia’s fastest internet service provider with symmetrical internet speeds ranging from 25Mbps to a whopping 1Gbps. The company complements its strong organic growth with acquisitions, having made more than ten acquisitions in the last two years. 

Intalock cyber security acquisition 

Intalock provides a comprehensive cyber security offering with blue chip customer portfolios across corporate and government. The company generated revenue of $23.6 million and normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.3 million in FY20. Spirit is making an upfront consideration of $15.0 million as a combination of 85% cash and 15% equity with a deferred consideration component. An additional earn-out consideration is also available for out-performance in FY22 capped at a maximum total transaction value of $22.5 million. 

The acquisition will allow Spirit to cross sell and bundle its internet and IT services with cyber security services. Spirit will also leverage Intalock’s position in corporate markets as part of its market expansion strategy for FY21.

Cyber security a rapid growth market

According to Spirit, Australia’s revenue from cyber security could triple over the next decade and is forecast to reach $6 billion by 2026, at a compound annual growth rate of 10.6%. Spirit sees the current cyber security market as highly fragmented with disparate solutions. Over three-quarters of the market is dominated by foreign companies, mostly with local bases employing Australians. 

Record revenue in October and November

Spirit Group’s October revenue was $6.5 million, up 16% on September and 196% year-on-year from $2.2 million. The company experienced record sales and total contract value of $6.9 million in November, up 166% month-on-month and up 565% YoY, with pending installations at $2.8 million and IT services & technology sales of $12.1 million. Its growth was driven by large new business wins with cloud, voice and data products being sold in bundles across health, education and corporate segments. 

The Spirit share price has increased more than 95% in year-to-date trading.

More reading

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• 2 top ASX shares to buy according to WAM
• 2 ASX growth shares to buy in December
• Banks rejoice: House prices to return to 2019 levels

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SPIRIT TC 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.

Amazon.com Inc (NASDAQ: AMZN) has quickly gone from $1 billion to $15 billion in ad sales over the last four years as it ramps up its advertising businesses. While it still pales in comparison to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google, which brought in about 10 times as much ad revenue as Amazon in 2019, Amazon’s eating into the search giant’s share of search ad spending growth. That’s very likely to continue over the next few years as a couple of key factors impact search advertising.

The acceleration of e-commerce

COVID-19 has changed the way we do our shopping. More people are shopping for more things online instead of going into stores, accelerating the shift to e-commerce. And these changes seem fairly permanent, as the pandemic has brought in new customers and opened new retail verticals for online shopping.

With more shopping happening online, marketers are quickly following consumers. That’s good for both Google and Amazon. 

But considering the high purchase intent of Amazon searches, the influx of digital advertising in categories like consumer packaged goods or electronics heavily favors the retailer instead of the general search engine.

Amazon has been eating into Google’s share of product searches for years. And those searches are some of its most valuable. With Amazon seeing an influx of spending on its marketplace and growth in Prime memberships during the pandemic, investors should expect its share of product searches to have followed suit. And with more searches, there are more opportunities to sell ads.

The growth of Amazon’s advertising business has supported strong operating margin expansion and ought to continue to support Amazon’s bottom line as consumer packaged good ad spending keeps shifting online.

Google’s status as the default search engine on iPhone is in question

Google generates a lot of revenue from searches on Apple Inc‘s (NASDAQ: AAPL) iPhone. In fact, the company is willing to pay an estimated $12 billion per year just to be the default search engine in the Safari web browser across Apple devices.

But Google is under investigation of antitrust practices in its dealings with Apple. What’s more, Apple is reportedly developing its own search engine, which could compete with Google.

If Google’s forced to relinquish its hold on Safari’s default search engine in one way or another, it’s not like Google’s share of search traffic goes to zero on the iPhone. Google still has many popular services on the iPhone despite competing default services from Apple.

But the default Safari browser will only grow more important over time. The vast majority of search ad spending in the U.S. will go toward mobile devices. Mobile search ad spend in the U.S. is expected to grow by nearly $30 billion from 2020 to 2024, according to eMarketer. Desktop search ad spend will grow just $10 billion in the same period.

Google currently dominates mobile search, thanks in part to its partnership with Apple. If that relationship changes for any reason, it could put a damper on Google’s ability to take the majority of search ad growth on mobile as it has in the past.

It’s not all bad news for Google

It’s worth reiterating the accelerating shift to e-commerce will benefit Google at least some, even if it’s not as much as it benefits Amazon. Furthermore, Google and other digital advertisers will see benefits from accelerations in cord-cutting, leading to more marketers seeking digital advertising. In fact, eMarketer now expects search advertising to grow faster long-term than it forecast pre-pandemic.

Importantly, Google remains a primary option for digital advertisers thanks to its huge user base and differentiated ability to target advertisements and measure their effectiveness. Smaller competitors won’t be able to gain share from Google, merely leading to greater consolidation of a bigger market between the tech giants.

Google still has a lot of growth ahead, but it has a few hurdles in its way. Meanwhile, Amazon’s runway is clear for accelerating advertising revenue.

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

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Adam Levy owns shares of Alphabet (C shares), Amazon, and Apple. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Apple and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. 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 Laybuy Holdings Ltd (ASX: LBY) share price will be one to watch this morning after the release of an update from the buy now pay later provider.

What did Laybuy announce?

This morning the Afterpay Ltd (ASX: APT) rival announced that it experienced stronger than expected growth throughout the month of November. This was driven by an increasing number of consumers making use of its payment platform.

According to the release, purchases made using Laybuy reached NZ$71 million in November, which represents an increase of 56% on October’s gross merchandise value (GMV).

This is also well ahead of the forecasts made with its half year results, which were released just over a week ago. At that point, management estimated that November’s GMV would be NZ$61 million.

Laybuy’s Managing Director, Gary Rohloff, commented: “The results Laybuy experienced in November is a continuation of the very strong GMV growth we have been experiencing throughout the year, with GMV up 220 percent year-on-year to 30 November 2020. While November is traditionally a strong retail month, with Black Friday and Cyber Monday signalling the start of the Christmas shopping period, the November results far exceeded our expectations.”

Laybuy reported a 19% increase in active merchants and a 14% in active customers over October and November. This means that in the past eight weeks, the company has seen 79,300 new customers sign-up and make use of Laybuy.

Growth across markets.

Pleasingly, strong growth was experienced in all three of the markets the company operates in. Though, management notes that the standout performer was the United Kingdom market.

Mr Rohloff explained: “Compared to October, purchases made using Laybuy in the month of November increased by 33 percent in both Australia and New Zealand, while sales surged by a staggering 79 percent in the United Kingdom.”

“The growth demonstrates the strong marketing strategy Laybuy is employing in the United Kingdom is having an impact – with recent sponsorship agreements with Manchester United and Manchester City and our partnership with Arsenal, for example, helping increase Laybuy’s brand recognition amongst those clubs millions of fans,” he added.

The managing director concluded: “At Laybuy we have a goal of creating a global brand and the rapid growth we are experiencing is positioning the company well to be the leading Buy Now, Pay Later provider in the market.”

More reading

• Laybuy (ASX:LBY) share price pushes higher following half year results
• Is buy now, pay later (BNPL) giving Aussies a headache?
• Laybuy (ASX:LBY) launches tap to pay digital card
• Why Laybuy, Oil Search, PointsBet, & Webjet shares are racing higher

Motley Fool contributor James Mickleboro 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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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAX) which looks at businesses it thinks are the most undervalued.  

WAM says WAM Active invests in market mispricing opportunities in the Australian market.  

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.7% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 3.1%.  

These are the two ASX shares that WAM outlined in its most recent monthly update:

Steadfast Group Ltd (ASX: SDF)

Steadfast has a market capitalisation of $3.4 billion according to the ASX.

WAM describes Steadfast as the largest general insurance broking company in Australasia.

The fund manager said that in October, the company increased its FY21 guidance, changing its underlying earnings before income, tax and amortisation from between $235 million to $245 million to a range of between $245 million to $255 million.

The ASX share also upgraded its underlying net profit after tax guidance to ;between $120 million and $127 million, with diluted earnings per share (EPS) growth of between 10% to 15%.

WAM said that Steadfast continues to benefit from the insurance premium market and is well placed to make acquisitions given its strong balance sheet.

At the current Steadfast share price, it has a trailing grossed-up dividend yield of 3.5%. Looking at Commsec, it’s valued at 21x FY23’s estimated earnings.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine has a market capitalisation of $4 billion according to the ASX.

WAM describes Nine as the largest locally owned media company. It owns and operates television, video on demand, print, digital and radio assets.

Some of its highest-profile assets include streaming service Stan, as well as the news outlets of the Australian Financial Review, the Sydney Morning Herald, the Brisbane Times and The Age. It owns the radio station 2GB. It also owns a significant stake of Domain Holdings Australia Ltd (ASX: DHG).

The investment team at Wilson Asset Management think that the ASX share will benefit from rising advertising expenditure in the lead up to the Christmas period, with consumer confidence improving after the announcement that lockdown restrictions would be relaxed in Victoria.

By FY24, Nine is trying to achieve a $230 million cost reduction (compared to FY19). The majority of this will come from programming, production and distribution cost reductions.

Nine is aiming for 60% of its earnings before interest, tax, depreciation and amortisation (EBITDA) to come from digital businesses, Nine wants more than 35% of its group revenue to come from subscription and around 30% of its revenue to come from video on demand.

According to Commsec numbers, the Nine Entertainment share price is valued at 16x FY23’s estimated earnings. It also offers a trailing grossed-up dividend yield of 4.25%.

More reading

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Steadfast 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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Are you looking to add a growth share or two to your portfolio? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies. Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, Aristocrat Leisure has been tipped for strong growth. And while it is facing notable headwinds right now due to the closure of casinos because of the pandemic, trading conditions are beginning to normalise.

Analysts at Morgans recently put an add rating and put a $37.31 price target on its shares. The broker notes that underlying business fundamentals are improving and casinos are largely open as normal in North America. In addition to this, it believes its strong balance sheet gives management options to accelerate its growth.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides businesses with a unified platform to streamline processes such as employee administration, recruitment, and payroll. ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend over the next decade. This is thanks to strong demand for its platform and management’s plan to make earnings accretive acquisitions.

Morgan Stanley has been pleased with its performance and believes it is well-placed for growth. So much so, it has an overweight rating and $9.30 price target on its shares. This compares to the current ELMO share price of $6.45. The broker was also pleased to see ELMO reiterate its organic growth guidance at its annual general meeting and sees positives in its recent $32 million acquisition of UK-based Breathe. These include market expansion and cross sell opportunities.

More reading

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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 and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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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After a bumper November for their share prices, the good news just keeps coming in spades for Australian banks to start December.

The real estate market, which the sector’s fortunes correlate with, has forgotten all about COVID-19 and is now absolutely buoyant. 

In fact, 24 out of 28 finance experts forecast that house prices would exceed 2019 levels in the coming year, according to a survey by comparison site Finder.

LJ Hooker head of research Mathew Tiller said historic-low interest rates are sending the market into a frenzy.

“One of the main beneficiaries of the ongoing record low rates has been property markets, with LJ Hooker agents reporting a significant increase in enquiries and strong levels of sales transaction volumes.”

A resurgent economy will push banks higher

This, combined with a resurgent Australian economy, is set to fire a rocket under bank shares, according to Ausbil executive chair Paul Xiradis.

“As the economy builds strength, and companies complete their repositioning for a changed world and earnings growth returns, we believe one of the best risk-adjusted opportunities for leverage to a resurging economy is in the banks,” he said.

“Banks are still trading well below their long-term multiples, have experienced less delinquency and bad debts than first thought, and are all well capitalised.” 

Traditionally fat dividends were a big attraction for the major four banks — Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). But they were forced to cut payouts this year due to the pandemic recession.

Xiradis forecasts this austerity would be short-lived. 

“With leniency recently expressed by APRA in terms of dividends, we expect a resurging banking sector to return to paying more normalised dividends on the back of a resurging economy in 2021.”

Will customers fall behind when government support is gone?

Loan customers falling behind in repayments are a risk due to the higher unemployment rate and the coming withdrawal of COVID-19 government support.

But again, the RBA’s 0.1% cash rate is helping minimise the impact, according to S&P Global Ratings.

“While arrears are likely to rise in the months ahead, it would be off a low level,” the agency stated Wednesday.

“Lower interest rates and boosts to household income have helped to keep arrears low.” 

S&P Global Ratings states reopening borders has eased economic pressures and the risk of loan defaults.

“Household income has been well supported by enormous fiscal stimulus measures, access to superannuation, and lower interest rates,” the agency stated.

“This has helped many borrowers to build repayment buffers and better manage their financial situation.”

All 28 experts surveyed by Finder either thought it “likely” or “very likely” that the Australian economy would exit the coronavirus recession next year.

Even this year, 79% of the boffins suspected the gross domestic product will already have returned to positive growth.

“Official GDP figures for the September quarter will be released this Wednesday, with the general consensus being that Australia may have already exited a recession,” said Finder insights manager Graham Cooke.

“The December quarter is likely to be robust as well, meaning it’s highly probable that we may see a gradual recovery of GDP through 2021.”

More reading

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Motley Fool contributor Tony Yoo 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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Is the Temple & Webster Group Ltd (ASX: TPW) share price a buy?

Many investors may be asking themselves that question after its fall of around 30% since 20 October 2020. Despite that decline, it’s actually up 277% in the year to date.

But what has been driving these movements?

The rise

Temple & Webster share price was at $4.18 before the onset of the COVID-19 crash on the share market. It fell all the way to $1.57 on 23 March 2020. The share market started recovering as government stimulus and central bank support started.

E-commerce businesses saw elevated demand during the period of lockdown restrictions. At the end of April 2020 it said that second half revenue was up 74% year on year to date.

That growth continued throughout the rest of FY20. In the final FY20 result, Temple & Webster reported that second half revenue was up 96% and the fourth quarter revenue was up 130%. Overall, full year revenue grew 74% to $176.3 million.

The company said that it played its part in helping Australians set up their homes to deal with the impacts of the crisis. Management believes that many people who may not have shopped for their homes online before are experiencing the benefits of the channel, including convenience and value.

Management pointed out how the advantages of being the online market leader are apparent as it continues to grow its market share. It said that the strategy of being a category specialist, with a clear customer offering built around the biggest and best furniture and homewares in the country, combined with the most inspirational content and services and a great delivery experience and customer service, is working.

In FY20 it grew active customers by 77% year on year, it was cashflow positive and it generated $8.5 million of earnings before interest, tax, depreciation and amortisation (EBITDA) (up from $1.5 million).  

The CEO was particularly pleased by the high level of customer satisfaction.

And the decline…

The Temple & Webster share price has been falling ever since it gave a trading update at its annual general meeting (AGM) over a month ago October. 

In that update it said that year to date revenue for 1 July 2020 to 19 October 2020 was up 138% compared to the prior corresponding period.

It generated $8.6 million of EBITDA in the first quarter of FY21, which was more than the full year of EBITDA in FY20.

Temple & Webster said that October revenue growth was still in excess of 100%. The company was pleased with that given it has entered its peak trading months. The contribution margin was also ahead of its 15% target. Customer satisfaction levels remain at a record, with a net promoter score of around 70% and newer cohorts of customers continue to perform better than historical companions.

Is the Temple & Webster share price a buy?

The company plans to continue to expand its range, particularly private label products. It’s going to keep aiming to grow its market share and brand awareness. It will keep investing in training and platforms for its customer experience and add more delivery options.

Temple & Webster said it’s committed to a high growth strategy to take advantage of the structural shift towards online, capitalising on both organic opportunities as well as potential acquisitions.

According to Commsec, Temple & Webster is valued at 34x FY22’s estimated earnings.

The Motley Fool Share Advisor service currently rates Temple & Webster shares as a buy.

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• Tech shares could crash 40%, warns fundie

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In this article are four small cap ASX dividend shares with large yields.

Small caps are businesses that are smaller than many well-known companies. The definition of a small cap normally means having a market capitalisation of less than $1 billion.

Here are four examples of businesses that are relatively small, but have a large dividend yield:

Pacific Current Group Ltd (ASX: PAC)

This is a business that takes strategic stakes in fund managers and tries to help them grow with the expertise it has gained.

In FY20 the small cap ASX share increased its dividend by 40% to $0.35 per share, which was supported by an increase of underlying earnings per share (EPS) growth of 18% to $0.44 per share. That means at the current Pacific Current share price it has a trailing grossed-up dividend yield of 8%.

Its funds under management (FUM), which is a driver of earnings, grew by 14% to $106.4 billion in the first quarter of FY21 for the three months to 30 September 2020.

360 Capital REIT (ASX: TOT)

This is a fund of diversified assets across real estate equity, debt and real estate based operating businesses with a history of quarterly distributions. It has access to real estate based investment opportunities available through its manager 360 Capital Group Ltd (ASX: TGP).

360 Capital REIT said it has commenced deploying its cash reserves again after holding cash during the COVID-19 period. 

The small cap ASX share had a net tangible asset backing of $1.13 per security at 30 June 2020, so the current 360 Capital REIT share price is at a 24% discount to this value. It is currently undertaking an on-market buyback.

For the first quarter of FY21 it declared a 1.5 cents per unit distribution, which equates to a yield of around 7% at the current share price.

It said in a recent update that it is well positioned to take advantage of market volatility arising from a tapering of government stimulus and ending of the moratorium on interest payments.

Tassal Group Limited (ASX: TGR)

Tassal is the biggest fish business in Australia. It has large salmon farming operations and it also has a growing prawn division after some acquisitions.

In FY20 the small cap ASX share grew operating net profit by 13.4% to $64.2 million and operating earnings before interest and tax (EBIT) went up 9.8% to $99.8 million. That supported the dividend being maintained during the COVID-19 period. In FY20 it paid a dividend of 18 cents per share. At the current Tassal share price, that equates to a partially franked dividend yield of around 5%.

The fish business recently announced the acquisition of Billy Creek, a property with around 1,300 hectares that is next to its Proserpine prawn farm. The combination of these two properties provides the opportunities for an additional (approximately) 350 hectares of ponds, supporting a total of around 800 hectares of ponds across the wider precinct. The proximity to the Bruce Highway provides ready power availability as well as existing road infrastructure.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the largest furniture businesses on the ASX, but it’s still a small cap ASX share.

In FY20 it increased its final dividend by 12.5%, bringing the full year dividend to 47.5 cents per share. At the current Nick Scali share price that represents a grossed-up dividend yield of 7.7%.

Its net profit was flat in the last financial year. However, it’s expecting higher growth in the first half of FY21. Total sales orders for the first three months of FY21 have been up 45% on the previous year. Excluding Melbourne and Auckland, comparable store sales orders grew by 59% in the first quarter.

Online orders have increased by 47% for the first quarter of FY21 compared to the last quarter of FY20 and the company now expects the EBIT contribution from online in FY21 to be higher than previously anticipated. It’s expecting first half net profit to be 70% to 80% more than the first half of FY20.

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Motley Fool contributor Tristan Harrison 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 Tuesday the Reserve Bank of Australia met to discuss the cash rate. As was widely expected, the central bank kept rates on hold at the record low of 0.1%.

But this may not be the case for long, with the latest cash rate futures now pointing to a 65% probability of a rate cut at its next meeting in February 2021. 

This would be another blow for income investors, who will have to contend with even lower rates next year.

But never fear, the Australian share market and its countless dividend shares are here to save the day.

Two ASX dividend shares that could solve your income needs are listed below. Here’s why they have been given buy ratings:

Aventus Group (ASX: AVN)

Aventus is the owner and operator of large format retail parks across Australia. Among its tenant base it counts a wide range of major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. Having such quality retailers filling its centres has been a huge positive in 2020. At a time when many retail landlords have struggled to collect rent, Aventus has collected its rent largely as normal and been able to reward shareholders with generous dividends.

Analysts at Goldman Sachs expect this to be the case again in FY 2021. They currently have a buy rating and $2.76 price target on its shares. They are also forecasting a forward 6% dividend yield for investors.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. It is best-known for its Sonata wealth management platform, but also has a number of other quality products supporting its growth. This includes the Rufus transfer agency solution, the Midwinter financial planning solution, and the recently acquired Delta Financial Systems.

And while FY 2021 is going to be difficult due to COVID headwinds, Goldman Sachs thinks investors should stick with the company due to its strong long term growth potential. Its analysts have a buy rating and $5.00 price target on its shares. They are also forecasting a ~10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.

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• 2 ASX dividend shares with 6%+ yields to 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 Bravura Solutions Ltd. 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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