The S&P/ASX 200 Index (ASX: XJO) fell by 3.06% on Friday, bringing many share prices down with it. During the week there was a cavalcade of bad news. From the start of an official recession after a 7% fall in GDP for the June quarter, to fears of a global slowdown, through to China banning all barley imports from Australia. The last of the major negative economic domestic news was a fall of 0.4% in Core Logic’s home value index.

In the buy now, pay later (BNPL) sector, Paypal Holdings Inc (NASDAQ: PYPL) announced it would be entering the market with an existing global platform. Consequently, companies like Sezzle Inc (ASX: SZL), Zip Co Ltd (ASZ: Z1P) and even the market leader, Afterpay Ltd (ASX: APT), saw their share prices fall by greater than 5%. In addition, the expectation of harder times ahead saw the Commonwealth Bank of Australia (ASX: CBA) share price fall by 2.13%, while the other big 4 banks saw falls of over 3%.

Nevertheless, there were definitely bright spots in the market. In my view, the positive performance of these companies serves to highlight investor sentiment, and where there is the possibility of share price growth over the next 6 – 18 months. 

Business credit

Three of the share prices I saw rise on Friday were related to personal and business credit. For example, CML Group Ltd (ASX: CGR) saw its share price go against the tide and rise by 1.37%. CML offers financing services for small businesses secured by assets other than real estate. It also has an online platform called Earlypay to increase customer loyalty and smooth the credit process. I have been watching this company for a while now and I think it is likely to perform well in the current market. 

CML Group is selling at a price-to-earnings (P/E) ratio of 22.29 and has a trailing 12 month dividend yield of 4.73%.

Consumer Credit

The Moneyme Ltd (ASX: MME) share price rose by 2.56% Friday. This company is an online loan provider. In FY20 it was able to increase origination by 52.8% and its gross loan book by 52.7%.  It has BNPL style services in real estate renting and sales, as well as a short-term, interest-free virtual credit card. However, the neo-lender is a very innovative and versatile company. Its principal business line is personal loans for up to 5 years. Well beyond that of the BNPL sector.

Moneyme is selling at a P/E of 190, which is very high. Clearly the market expects a lot from this company and I think they may be right. 

Money3 Corporation Limited (ASX: MNY) is another consumer lender primarily targeting the car loans sector, but also long-term personal loans. Recently, the Money3 share price rose after the company reported an increase in revenue of 35.3% and a 16.4% growth in its loan book. The company has been able to expand significantly in the near prime sector. Near prime is a sector for those with a problematic credit history. Consequently, they are able to charge higher margins. 

If even half of the forecasts are correct, we are headed for a pretty rough ride over the next 1 – 2 years. Therefore, companies like this will probably see higher revenues. Money3 is selling at a P/E ratio of 17.29 and has a trailing 12 month dividend yield of 3.86%.

Foolish takeaway

To me, the trends reflected last week signify that investors are repositioning their portfolios for a change in the economy. As such, acting sooner rather than later could be wise. Once shares like these take off, then some potential share price gains could be curtailed. I like all three of these companies, with CML Group being my stand out option. 

More reading

• More radical action from RBA likely after Victoria’s extends harsh lockdown
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Where to invest $500 into ASX shares right now
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and Sezzle 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.

The post Share price opportunities to buy this week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2R0g6KZ

The S&P/ASX 200 Index (ASX: XJO) capped off one of its worst weeks in 3 months last week, dropping a substantial 2.4% over the week. It was a fairly ordinary week on the ASX 200 until Friday. From Monday to Thursday, the ASX 200 was up for the week (around 0.6%) and things seemed to be fairly ordinary. No major news, no significant market-moving events. But then Friday came and brought mayhem with it. Friday started with the ASX 200 plunging by 2.4% half an hour after market open. By 2pm, the index had fallen by another 0.8% and Friday ended up wiping 3.06% from the value of the ASX 200.

It was the ASX 200 blue chips that led these losses. The ASX’s biggest share, CSL Limited (ASX: CSL), was down 4.09% on Friday, whilst the major ASX banks and Telstra Corporation Ltd (ASX: TLS) were all down more than 2%. Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) were both down by 3.39% and 3.94% respectively. BHP Group Ltd (ASX: BHP) was down 3.78% and Wesfarmers Ltd (ASX: WES) by 3.73%.

ASX tech shares, whilst not as important to the ASX 200 Index, were nonetheless the worst hit shares. Afterpay Ltd (ASX: APT) shares were down 6.7% and WiseTech Global Ltd (ASX: WTC) down 7.1% on Friday. Appen Ltd (ASX: APX), Xero Limited (ASX: XRO) and Altium Limited (ASX: ALU) were all down by more than 5%.

US markets bring ASX 200 carnage

The catalyst for these moves? Well, it didn’t appear to have anything to do with the Australian economy or the Australian commercial landscape. Rather, it followed an extremely heavy night of selling over in the United States markets on Thursday night (our time), which logically reduces the value of almost every company on the ASX (I hope you’re sensing the sarcasm here!). In all seriousness, the US markets have been on a tear in recent weeks, with big tech companies like Apple Inc (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA) in particular going bananas after recent stock splits.

Thursday night saw a dramatic correction of this run-up.

The tech-heavy Nasdaq Composite index dropped by 5% on Thursday night, with the broader S&P 500 Index dropping by 3.5%. It was the worst day for the Nasdaq since March. US tech shares took the brunt of these falls, with Apple down by 8% and Tesla by 9%. Other tech names like Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) weren’t spared either, dropping by 4.6% and 5.1% respectively.

There’s little doubt that US tech shares’ valuations had been becoming stretched in recent months in my view, so there was always going to be a pullback at some point. This week has delivered it and the spillover has hit the ASX in dramatic fashion.

How did the markets end the week?

As we’ve discussed, it was a dramatic week on the ASX 200. The index started out the week at 6,073.8 points and finished up on Friday at 5,925.5 points for a week-on-week loss of 2.44%. Monday started out strong with a 2.2% rise for ASX 200 shares. Tuesday then brought a 1.8% slump, which was promptly reversed on Wednesday with a 1.8% gain (despite official confirmation of Australia’s first recession in 3 decades). Then Thursday brought a small 0.8% gain before Friday saw the week’s gain destroyed with the 3.06% plunge.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a nasty week, starting out on Monday at 6,262.5 points and finishing up on Friday at 6,108.8 points for a week-on-week loss of 2.5%.

Which ASX 200 shares were the biggest winners and losers?

Now let’s turn to the Foolish gossip pages with last week’s winners and losers. As always, we’ll start with the losers:

Worst ASX 200 losers	% loss for the week
IOOF Holdings Limited (ASX: IFL)	(22.5%)
Afterpay Ltd (ASX: APT)	(11.9%)
Platinum Asset Management Ltd (ASX: PTM)	(10.1%)
Medibank Private Ltd (ASX: MPL)	(9.6%)

The week’s recipient of the ASX 200 wooden spoon goes to wealth manager IOOF. Investors couldn’t wait to get out of this company’s shares after the completion of a mammoth $1.04 billion capital raising. IOOF intends to use this money to purchase wealth business MLC from National Australia Bank Ltd. (ASX: NAB). Clearly investors aren’t too hot on the whole idea.

Next up we have Afterpay, a rare appearance for the buy now, pay later (BNPL) pioneer in the losers column. As one of the ASX’s highest flying tech shares in 2020 so far, Afterpay was particularly vulnerable to the tech sell-off the ASX saw on Friday. The 6.7% fall on Friday was enough to pull Afterpay shares down nearly 12% last week. An announcement from US payments giant PayPal Holdings Inc. (NASDAQ: PYPL) that the company intends to rollout a BNPL product of its own didn’t help either.

Platinum was a victim of the sell-off on Friday with no major news coming out of the asset manager, whilst Medibank also had a tough week, made tougher by the company going ex-dividend on Wednesday.

Now the losers are out of the way, let’s take a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
SkyCity Entertainment Group Limited  (ASX: SKC)	11.7%
Lendlease Group (ASX: LLC)	9.1%
AMP Limited (ASX: AMP)	8.5%
Costa Group Holdings Ltd (ASX: CGC)	8.5%

Taking out top spot on the ASX 200 last week was casino operator SkyCity. Investors were excited by this company’s late-out-the-gate earnings report that the company released on Thursday, in which SkyCity said it expects to return to profit growth in FY2021.

Next up we have property tycoon Lendlease. Investors were evidently impressed by a ‘strategy update’ that the company released last week. Despite this bump in share price, Lendlease shares remain nearly 32% below where they started the year.

Investors also reacted positively to AMP’s plans to potentially break up and sell the pieces of the iconic business, seeing some potential value for shareholders in the process.

Finally, we have agricultural company Costa. Costa shares have been in investors’ sights for the last week after the company posted a positive earnings update the previous week.

What does this week look like for the ASX 200?

Last week’s late market moves probably took most of us by surprise , and in my opinion, all eyes will be turning to the US markets this week for some directional guidance for the ASX 200. The US markets are closed on Monday (US time) for their Labour Day weekend, so we will have to wait until Tuesday night (our time) to get a gauge on how the Americans are feeling. 

I would anticipate some more volatility on the ASX if the US markets plunge again, but equally, I wouldn’t be surprised to see the ASX 200 rally if US investors shake off the wobbles that last week saw when trading resumes.

So to prepare yourself for this week and whatever it may bring, here is a look at how the major ASX 200 blue chip shares are shaping up:

More reading

• Where to invest $500 into ASX shares right now
• 5 things to watch on the ASX 200 on Monday
• Why I would buy these quality ASX shares for a retirement portfolio
• Forget Westpac’s term deposits and buy these ASX dividend shares
• Top brokers name 3 ASX shares to buy next week

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. Sebastian Bowen owns shares of Alphabet (A shares), National Australia Bank Limited, Newcrest Mining Limited, Telstra Limited, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Apple, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., WiseTech Global, and Xero and recommends the following options: short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO, Macquarie Group Limited, and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, PayPal Holdings, and Sky City Entertainment 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.

The post ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/334UuCF

Are you planning to invest $500 into the share market in the near future?

If you are, I believe you should be looking long term with your investments. This is because at ~$10 per trade, brokerage costs will eat into your profits if you are constantly buying and selling shares.

But which shares should you buy with $500? Listed below are three quality ASX shares I think would be great options for investors:

Afterpay Ltd (ASX: APT)

I believe this buy now pay later (BNPL) provider could be a great option for a $500 investment. I believe Afterpay could be a long term market beater thanks to the growing popularity of BNPL with consumers and retailers and its global expansion plans. The latter includes plans to expand into Europe and potentially Asia in FY 2021. Combined with its long runway for growth in the $5 trillion United States market, I believe Afterpay’s earnings could grow at a rapid rate for many years to come. And if everything goes to plan, I feel Afterpay has the potential to become a giant of the payments industry.

Nearmap Ltd (ASX: NEA)

Another ASX share to consider investing $500 into is Nearmap. It is an aerial imagery technology and location data company with operations currently in the ANZ and North American markets. I believe it could also be a long term market beater. This is due to the quality of its software and its strong position in a fragmented market worth an estimated $2.9 billion per year. Another positive is that the company has the option to increase its addressable market by expanding into other countries in the future.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX share to consider investing $500 into is Pushpay. It is a leading donor management platform provider for the faith sector. Due to the digitisation of the church and the shift to a cashless society, I believe Pushpay is well-positioned for growth over the 2020s. This certainly will be the case in FY 2021. Management recently advised that it is on course to deliver EBITDAF of between US$48 million and US$52 million this year. This will be a 91.2% to 107% increase, respectively, year on year. Looking further ahead, Pushpay is targeting a 50% share of the medium to large church market. This represents a US$1 billion revenue opportunity.

More reading

• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Here’s how to make a $1 million portfolio by investing $1,000 a month
• These were the worst performing ASX 200 shares last week
• ASX All Technology Index swells with new additions
• ASX 200 plunges 3.1%, Afterpay suffers

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 Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. and PUSHPAY FPO NZX. 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 Where to invest $500 into ASX shares right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/332Rsz5

If I had to buy one ASX share this week it would be listed investment company (LIC) Future Generation Global Investment Co Ltd (ASX: FGG).

What is a LIC?

In most ways a LIC is just like any other company. The main difference with a LIC is that instead of selling products and services, it makes investments on behalf of shareholders.

The profit generated by a LIC comes from the capital gains (both realised and unrealised) as well as the investment income it receives. The LIC can then choose to keep all of those investment profits to grow the portfolio further, or it could decide to pay out some of that profit as a dividend.

There are some very old ASX share LICs on the ASX like Australian Foundation Investment Co.Ltd. (ASX: AFI) and Argo Investments Limited (ASX: ARG). There are also newer ones such as Future Generation Global.

A quick overview of Future Generation Global Investment Co Ltd

Future Generation Global is one of the philanthropic LICs launched by Wilson Asset Management (WAM) founder Geoff Wilson. The idea behind Future Generation is to donate money to youth charities. I think it’s a great cause. Future Generation Global invests 1% of its net assets each year to youth mental health charities.

In 2020 Future Generation Global’s donation is $5.7 million. Some of the charities it supports include: Black Dog Institute, Reachout.com, Sane Australia, Kidshelpline and Butterfly.

So what ASX shares does Future Generation Global invest in? It doesn’t actually invest in Australian shares. It invests in Australian fund managers that target international shares. Those managers work for free so that Future Generation Global can make its annual donation.

Some of the fund managers that it’s invested with are: Magellan Financial Group Ltd (ASX: MFG), Cooper, Caledonia, Paradice and Munro Partners. These are some of the best fund managers in Australia.

Recent performance update

Future Generation Global releases a monthly update. The ASX share reports how its gross portfolio return compares against the MSCI AC World Index (AUD). Over July it outperformed the benchmark by 1%, over six months it outperformed by 5%, over the previous 12 months it outperformed by 4.8% and over the past three years it outperformed by 2.1% per annum with an average annual return of 13.1%.

I think this level of outperformance is attractive, particularly as it offers such a wide level of diversification.

Why I’d buy Future Generation Global Investment this week

The ASX share is invested in multiple portfolios of businesses. I really like that you get underlying exposure to many dozens of different stocks. It has been a good defensive option during COVID-19. 

I like that the Australian dollar has strengthened in recent months. That means it’s better to buy international shares such as US businesses. Right now the Australian dollar is almost at the strongest level compared to the US dollar that it has been over the past 12 months.

The Future Generation Global board recently decided to increase the full year dividend from 1.5 cents to 2 cents per share. The focus of this ASX share is capital growth, but it’s nice to see that the dividend can grow as the profit reserve gets bigger.

The value is the most important reason to consider Future Generation Global. I’m not sure what today’s pre-tax net tangible assets (NTA) per share is. But at the end of July 2020, the LIC had $1.505 of NTA per share. Compared to the pre-open Future Generation Global Investment share price of $1.29, it’s trading at an attractive 14.3% NTA discount.

Diversification, outperformance and a discount is an attractive combination in my opinion. I recently bought a parcel of shares and I’d happily do it again today.

More reading

• Here are 2 ASX shares perfect for a beginner

Motley Fool contributor Tristan Harrison owns shares of Future Generational Global Investment Company 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.

The post This is the ASX share I’d buy this week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2R2Wjui

Are you looking for ASX dividend shares to add to your portfolio this week? Then the ones listed below could be top options for you right now.

Here’s why I think these ASX dividend shares are currently in the buy zone for income investors:

Accent Group Ltd (ASX: AX1)

The first option for income investors to look at this week is Accent. It is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. Although the pandemic has hit the retail sector hard, Accent has continued its positive form thanks to the popularity of its brands, its strong market position, and growing online business.

And due to its expansion plans, strong online offering, and its focus on active/casual wear, I’m confident Accent is well positioned to grow its profits and dividends at a solid rate over the next decade. For now, I’m expecting Accent to pay a 9 cents per share fully franked dividend in FY 2021. Based on the current Accent share price, this means investors will receive a forward 5.75% dividend yield.

National Storage REIT (ASX: NSR)

Another option to consider buying is this self storage operator. I think it could be a top long term option for income investors due to its strong market position and growth through acquisition strategy. This strategy has supported solid income and distribution growth over the last few years and even during FY 2020.

National Storage posted a 9% increase in underlying earnings to $67.7 million in FY 2020. And while its earnings are expected to be flat at best in FY 2021, I’m confident its growth will resume once the crisis passes. Until then, based on the current National Storage share price, I estimate that it offers an attractive forward 4% distribution yield.

More reading

• 5 things to watch on the ASX 200 next week
• 2 high yield ASX dividend shares to buy right now
• Leading brokers name 3 ASX shares to sell today
• Buy these ASX dividend shares if the RBA cuts rates
• Is the Mirvac share price the best real estate buy right now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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.

The post 2 top ASX dividend shares in the buy zone for income investors appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3bA187L

The tech sector has been hit very hard this month following a profit-taking selloff on Wall Street’s Nasdaq index.

While this is disappointing, it has pulled down a number of high quality ASX tech shares to attractive levels.

Two ASX tech shares that I would buy are listed below. Here’s why I think investors should snap them up when the dust settles:

Appen Ltd (ASX: APX)

The Appen share price is down 26% from its 52-week high. I believe this is a buying opportunity for long-term focused investors. Appen is the leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). This essentially means that when businesses are developing AI models, they come to Appen to have its million-strong crowd-sourced team of experts prepare the data to go inside it. This is a vital part of the process, as without quality training data, a model will never reach its potential.

The good news for Appen is that demand for AI services is expected to grow strongly over the next decade as businesses and governments invest heavily in the space. I believe this bodes well for Appen and expect it to underpin strong earnings growth over the next decade. In light of this, I think now would be an opportune time to invest.

ELMO Software Ltd (ASX: ELO)

The ELMO Software share price is down a whopping 35% from its 52-week high. I think this has brought the shares of the cloud-based human resources and payroll software company to an attractive level. Especially given its strong long term growth potential and its positive performance during the pandemic. ELMO was a strong performer in FY 2020 and grew its annualised recurring revenue (ARR) by 19.7% to $55.1 million. Management expects similarly strong organic ARR growth in FY 2021 and looks likely to bolster this with acquisitions.

Looking further ahead, the company estimates that the ANZ market is currently worth $2.4 billion per year and the UK market is worth $6.8 billion. This gives ELMO and its quality software platform a long runway for growth over the next decade.

More reading

• 4 exciting small cap ASX tech shares to watch
• ASX 200 plunges 3.1%, Afterpay suffers
• Buy these beaten down ASX 200 shares after the market selloff
• 3 ASX growth shares to buy after the market selloff
• I love volatile ASX share market days like today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of Appen 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.

The post Buy these exciting ASX shares after the tech selloff appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3i64CBD

On Friday the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed notably lower. The benchmark index fell almost 3.1% to 5,925.5 points.

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

ASX 200 to drop lower gain.

It looks set to be another disappointing day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 36 points or 0.6% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.8%, and the Nasdaq index tumble 1.3% lower.

Oil prices crash lower.

It could be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices crashed lower on Friday night. According to Bloomberg, the WTI crude oil price fell 3.9% to US$39.77 a barrel and the Brent crude oil price dropped 3.2% to US$42.66 a barrel. Concerns over global oil demand weighed heavily on prices.

DEXUS looking at AMP fund.

The DEXUS Property Group (ASX: DXS) share price could be one to watch this morning. There are reports that the property company is looking to snare the rights to a big Australian investment fund operated by AMP Limited (ASX: AMP). The AFR understands that DEXUS is aiming to merge one of its own funds with the $4.5 billion AMP Capital Diversified Property Fund. The latter owns stakes in the Pacific Fair shopping centre, the Macquarie Centre, and the Quay Quarter.

Shares going ex-dividend.

Another group of shares will be trading ex-dividend this morning and could drop lower. Two highlights today are stock exchange operator ASX Ltd (ASX: ASX), which goes ex-dividend for its 122.5 cents per share dividend, and healthcare company Sonic Healthcare Limited (ASX: SHL) for its 51 cents per share dividend. They are joined by dairy company Bega Cheese Ltd (ASX: BGA) and financial services company IOOF Holdings Limited (ASX: IFL).

Gold price softens.

The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price softened. According to CNBC, the spot gold price fell 0.2% to US$1,934.30 an ounce on Friday night. A strong U.S. jobs report boosted the U.S. dollar and weighed on the gold price.

More reading

• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• ASX 200 plunges 3.1%, Afterpay suffers
• Top brokers are urging you to buy these ASX stocks in this market meltdown

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2R08Oa5

When you first start out investing, you might seek market beating returns from high risk, high reward growth shares. After all, if things don’t go quite to plan, you have plenty of time to recover from your losses.

But as you approach or enter retirement, I think these types of investments should start to take a backseat and become just a small part of a portfolio. 

Instead I think investors at this stage in their investment journey should focus on those that offer both income and capital preservation.

With that in mind, I have picked out two ASX shares which I think would be great options for a retirement portfolio right now. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX share I would consider buying for a retirement portfolio is Coles. In fact, I think the supermarket giant is arguably the best option on the Australian share market for retirees to buy. This is because it offers the winning combination of defensive earnings, solid growth prospects, and a decent yield. In respect to the latter, based on the current Coles share price, I estimate that it offers investors a fully franked forward 3.1% dividend. I think this is very attractive in the current low interest rate environment.

Dicker Data Ltd (ASX: DDR)

Another top option for a retirement portfolio could be this wholesale distributor of computer hardware and software. I think Dicker Data would be a great option due to its robust business model, solid growth prospects, high levels of insider ownership, and its quarterly dividends. Business has been booming in FY 2020 and management intends to increase its dividend by around a third to 35.5 cents per share. With the Dicker Data share price currently fetching $7.36, this equates to a generous fully franked 4.8% dividend yield.

More reading

• ASX All Technology Index swells with new additions
• ASX 200 plunges 3.1%, Afterpay suffers
• The best dividend shares to buy today
• Quarterly rebalance: Coles and Fortescue added to ASX 20, Zip joins the ASX 200
• 2 solid ASX dividend shares for income in 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 I would buy these quality ASX shares for a retirement portfolio appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lYJ64e

At present, Westpac Banking Corp (ASX: WBC) is offering 0.7% per annum yields on its 12-month term deposits. This is broadly in line with what other banks are offering.

This means that even if you invested $1 million into these term deposits, you’d only get $7,000 of income from them annually.

Fortunately, the Australian share market is home to a number of ASX dividend shares which offer vastly superior yields.

Three dividend shares which I think would be great as part of a balanced income portfolio are listed below. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider buying is BWP. It is a real estate investment trust with a focus on warehouses. The majority of its properties are leased to hardware giant Bunnings, which I believe is one of the highest quality retailers in the country. Bunnings has been a strong performer during the pandemic and looks well-positioned to continue this positive form over the long term. In light of this, I think BWP is well-positioned to grow its rental income and distribution at a solid rate over the next decade. Based on the current BWP share price, I estimate that it offers investors a forward 4.5% yield.

Fortescue Metals Group Limited (ASX: FMG)

Another option for income investors to consider buying its Fortescue. I believe it is a great option due to the quality of its operations and the high prices that iron ore is commanding at present. With the iron ore price trading above US$120 a tonne, Fortescue is well-placed to generate high levels of free cash flow in FY 2021. The majority of this is likely to be returned to shareholders in the form of dividends. In light of this and the current Fortescue share price, I would expect a forward fully franked dividend of 5% to 6%.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final option to look at is the Vanguard Australian Shares High Yield ETF. It invests in a total of 66 high yielding dividend shares from a range of different sectors. This includes mining giants, the banks, and blue chip favourites. I like the fund because of the diversity it gives investors. Something which the pandemic has proven is very important to have. I estimate that its units offer a forward dividend yield of 4% to 5%.

More reading

• How to earn a passive income of $50,000 with ASX dividend shares
• ASX 200 plunges 3.1%, Afterpay suffers
• The best dividend shares to buy today
• Insiders have been buying Fortescue and this ASX share
• Fortescue share price drops lower despite positive update

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

The post Forget Westpac’s term deposits and buy these ASX dividend shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/359lhAx

While some stocks have fully recovered from the 2020 market crash, others continue to trade at exceptionally low prices. Although there is scope for them to move even lower in the short run, over the long term a number of sectors appear to offer excellent recovery potential.

Therefore, buying a diverse range of undervalued stocks now could boost your portfolio returns over the coming years. They could prove to be among the most attractive buying opportunities of your lifetime.

Recovering from the market crash

The market crash caused a wide range of stocks to experience severe declines in their price levels in the first quarter of 2020. While some of them have recovered since then, many industries continue to be extremely unpopular among investors. Stocks trading within such sectors could, therefore, offer excellent value for money for long-term investors.

For example, low interest rates in many of the world’s major economies mean that banking stocks are generally viewed unfavourably by investors. Although they are set to experience lower profitability in the short run, over the long term they could deliver sound recoveries. Similarly, travel stocks, retail businesses and energy companies that have solid balance sheets may be able to adapt their business models to a changing economy. This may allow them to generate improving profitability that leads to rising share prices over the coming years.

Through focusing your capital on unpopular sectors after the market crash, you could enjoy market-beating returns over the long run. For many stocks in the aforementioned sectors, investor sentiment has very rarely been as weak as it is today. Therefore, now could be a rare buying opportunity.

Capitalising on undervalued stocks

Clearly, the market crash could be repeated in the near term. Risks such as the US election, Brexit and the coronavirus pandemic may cause investor sentiment to weaken further. Similarly, the weak prospects for sectors such as banking, travel and energy companies may lead to financial difficulties for their incumbents.

As such, it is important to buy a diverse range of businesses. Having a portfolio that is too concentrated on a small number of companies means you are reliant on them to deliver your returns. Should one or more of them disappoint in this regard, your portfolio’s performance could be severely impacted. This risk can be diversified away, which could produce higher returns in the long run.

Furthermore, buying the strongest and most dominant businesses in unpopular sectors after the market crash is a logical approach. They may not be among the cheapest stocks compared to some of their peers. But buying high-quality stocks at low prices may prove to be a better strategy than simply purchasing cheap stocks. Over time, strong businesses are likely to survive and prosper as their operating conditions improve, and investor sentiment does likewise. This could lead to higher returns for your portfolio.

More reading

• 3 ASX shares every retiree should own
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to buy next week
• 4 exciting small cap ASX tech shares to watch
• Here’s how to make a $1 million portfolio by investing $1,000 a month

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

The post Market crash 2020: why this could be a once-in-a-lifetime investing opportunity appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3i4AhDw