If you’re looking for some quality ASX dividend shares to buy, then the three listed below tick a lot of boxes for me.

I think they are among the best on offer for income investors right now. Here’s why:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX dividend share to consider buying is Commonwealth Bank. I think the big four banks were severely oversold during the pandemic and, although they have recovered strongly over the last few weeks, I still think they are undervalued. My preference in the sector remains Commonwealth Bank due to the overall quality of its business. Next year I expect the company to cut its dividend to ~$3.70 per share. If this proves accurate it will mean a fully franked 5.4% FY 2021 yield.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue Metals could be a great dividend share to own if you don’t mind investing in the resources sector. It looks well-positioned to deliver strong profit results in FY 2020 and FY 2021 thanks to sky high iron ore prices, improving production grades, and its low cost operations. And with the iron ore producer’s balance sheet looking strong, I suspect the majority of its free cash flow will be returned to shareholders. I expect this to lead to a fully franked dividend of at least 6% in FY 2021.

Telstra Corporation Ltd (ASX: TLS)

A third dividend share to consider buying is Telstra. The telco giant is one of my favourite income options right now due to its attractive valuation, generous yield, and positive outlook. The latter is thanks to the NBN headwind beginning to ease and its significant cost cutting. Combined, I believe Telstra could return to growth in the coming years. But thankfully, until then I believe it dividend is sustainable at 16 cents per share. This equates to a fully franked 5% dividend yield.

More reading

• ASX 200 closes higher, banks keep rising
• Here’s why I think CBA shares are a good buy today
• Ready to invest your first $2,000 in ASX shares? Do these 3 things first
• 2 ASX growth shares I’d buy before Afterpay shares
• Top broker tips the Vocus share price to zoom higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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 These quality ASX dividend shares have very juicy yields appeared first on Motley Fool Australia.

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

The Appen Ltd (ASX: APX) share price slumped 4.59% today to close at $29.08.

Why the Appen share price fell today

The drop came Friday after an after-market announcement on Thursday that revealed a number of Appen’s directors have been selling shares.

The company chair, Chris Vonwiller, sold 18% of his holding for an average price of $29 per share. He sold them for personal reasons, including philanthropy. This left him with a total of 9 million shares.

CEO and managing director Mark Brayan sold 18.6% of his holding at an average price of $30.60 per share. Brayan sold in order to meet tax obligations and to diversify his personal wealth. He continues to hold 418,309 Appen shares. 

Non-executive director Bill Pulver sold just over 45% of his holding in Appen at an average of $30.69 per share. This director sold in order to diversify his personal wealth and has a remaining holding of 332,384 shares.

Together, the directors sold an aggregate of 2.37 million shares, representing a total value of $68,919,600 at today’s share price. 

While the directors each gave reasons why they sold some of their holdings, this didn’t stop the Appen share price from falling in response today. 

The company’s share price today is down from its 52 week high of $32.30 reached in May. It has, however, risen 11.20% compared to this time last year. The company’s share price has also risen significantly since the beginning of January when it sat at $22.18.

Appen has seen considerable success lately through the development of its artificial intelligence (AI) products. The company builds software that can recognise language and images. At its AGM in May, Appen outlined that global AI spending is rising at 28% per year. This demonstrates that it has the ability to reach a rapidly growing market. 

The company’s revenue has grown at a compound annual growth rate (CAGR) of 59% since 2015. Underlying earnings before interest, tax, depreciation and amortisation have risen at a CAGR of 64% over the same timeframe.

Appen had $100 million in cash on its balance sheet in May.

More reading

• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
• Why the Appen share price could come under pressure today
• 3 small cap ASX tech shares that could be stars of the future
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. 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 Why the Appen share price fell nearly 5% today appeared first on Motley Fool Australia.

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

What happened today on the ASX?

The S&P/ASX 200 Index (ASX: XJO) closed higher today, with the ASX banks pushing higher.

The ASX 200 keeps going higher despite an initial wobble this morning. The Australian dollar keeps rising as well.

Here are some ASX highlights from today:

ASX banks pull the index higher

The ASX may have finished in the red if it weren’t for the continued positive movements by the major ASX 200 banks. It has been a huge week for them.

Today we saw the Commonwealth Bank of Australia (ASX: CBA) share price rise 1.9%, the Westpac Banking Corp (ASX: WBC) share price rose by 3.4%, the Australia and New Zealand Banking Group (ASX: ANZ) share price went up 2.9% and the National Australia Bank Ltd (ASX: NAB) share price went up nearly 3%.

Kogan.com Ltd (ASX: KGN) shoots the lights out

The online retailer is seeing an astonishing amount of growth in the final quarter of FY20. The Kogan.com share price rose 8.6%, so it’s well on its way to entering the ASX 200 this year. 

Today it said it added another 126,000 active customers in May 2020, bringing the total to 2.074 million at the end of last month.

So far in the fourth quarter of FY20, gross sales and gross profit have grown by more than 100% and 130% respectively. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) has risen more than 200%.

The company finished with $58.6 million of cash and $26 million of debt at the end of May 2020.

New Hope Corporation Limited (ASX: NHC) delayed again

The ASX 200 coal miner announced today that the High Court of Australia has granted Oakey Coal Action Alliance Inc (OCAA) special leave to appeal the orders of the Queensland Court of Appeal which were made on 1 November 2019.

New Hope said that OCAA isn’t challenging findings on groundwater or any other environmental issue that is relevant to any decision being made by the government. This is why the company thinks the Queensland state government should immediately approve the New Acland Stage 3.

More reading

• What the 10 largest companies in the world have in common
• Why is it so hard to outperform the ASX 200 index?
• These quality ASX dividend shares have very juicy yields
• Here’s why I think CBA shares are a good buy today
• 3 tips for surviving an ASX recession

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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.

The post ASX 200 closes higher, banks keep rising appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Y29Sxf

June and winter are upon us and that means tax time is, too. If you currently own ASX shares, you’re likely looking for tax tips for investors. Doing our taxes each year can be time-consuming and expensive, depending on how you choose to have your tax affairs managed. But it’s an important time, nonetheless, and one that can have some serious impacts on your finances.

Successful investing normally comes with a bittersweet reality – we have to share our success with the taxman. It’s the price we all pay for a civilised society, as they say.

But that doesn’t mean there’s not a right way and a wrong way to doing our taxes. So below I’ve listed 3 tax tips for investors! Remember, this is all just general advice, make sure to check with a licensed tax professional regarding your own situation.

Tip 1) Claim all the deductions you are entitled to

Investing can take up a lot of time and money. Staying on top of things in the investing world can often cost you some serious coin. Newspaper subscriptions, investing memberships or accounting software fees are some of the many costs one can occur in managing an investment portfolio. Luckily, most costs that are directly applicable to running your investments are usually tax-deductible. So make sure you’re claiming all relevant costs that you might incur as part of your investing activities, including any capital losses.

Tip 2) Detail all of your income

There are many different ways you can make money in the course of an investment. There’s buying and selling shares and receiving dividends for one. But there are also managed fund distributions and foreign currency gains as well. Not to mention trading cryptocurrencies or options.

To the chagrin of some, no matter where or how you get the money in the course of your investing activities, it’s probably taxable. So don’t get yourself into a sticky situation with our friends at the Australian Taxation Office (ATO) and make sure you report any and all income you earn from your investments.

Tip 3) Earmark your return for ASX shares

Many of us will be entitled to a refund of some tax when we eventually receive our tax returns. Whilst it’s very easy to go out and splash this money on some new clothes, a fancy dinner or a holiday (domestic this year), it’s an even better idea to earmark the cash as ‘investing money’ before you even get it.  That way, you can give your ASX shares portfolio a major boost without blinking an eye.

Of course, if you would rather top up your savings for a rainy day then that’s completely fine. But think twice about how best to use a windfall this tax time. You might find that a new outfit or a night out on the town can wait.

More reading

• EML Payments and thse ASX mid cap shares could be destined for big things
• What the 10 largest companies in the world have in common
• Why is it so hard to outperform the ASX 200 index?
• These quality ASX dividend shares have very juicy yields
• Why the Appen share price fell nearly 5% today

Motley Fool contributor Sebastian Bowen 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 3 tax tips for investors in 2020 appeared first on Motley Fool Australia.

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

As I’ve mentioned here before, I like to keep an eye on substantial shareholder notices.

This is because it gives you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

IDP Education Ltd (ASX: IEL)

A notice of initial substantial holder reveals that Capital Group Companies has been buying the shares of this provider of international student placement services and English language testing services. Capital Group is an American financial services company. It is one of the world’s oldest and largest investment management companies with over US$2 trillion in assets under management.

According to the notice, Capital Group has been building a position in the company over the last six months and was buying shares as recently as Wednesday. It now owns 14,201,994 IDP Education shares, which equates to a 5.1% stake in the company. With its share price down 33% from its 52-week high, Capital Group appears to see a lot of value here.

TechnologyOne Ltd (ASX: TNE)

Another notice of initial substantial holder reveals that VicSuper has been taking advantage of a recent pullback in this enterprise software company’s shares to top up its position. VicSuper, which was established in 1994, is one of Australia’s leading profit-to-member super funds.

According to the notice, VicSuper now owns 17,953,423 TechnologyOne shares. This represents a 5.63% stake in the company. The TechnologyOne share price is down almost 12% since the release of its half year update last month. Investors were a touch underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Nevertheless, judging by its purchases, this fund manager appears confident in TechnologyOne’s growth prospects and has seen this pullback as a buying opportunity. 

More reading

• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• These were the worst performing ASX 200 shares last week
• Insiders have been buying these ASX shares this week
• Build wealth for life with these 2 ASX 200 shares
• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher

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 Idp Education Pty Ltd. 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 Fund managers have been buying these ASX shares appeared first on Motley Fool Australia.

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

The Wide Open Agriculture Ltd (ASX: WOA) share price has charged out of a trading halt today, rallying as much as 30% on the back of a completed capital raising.

Wide Open Agriculture is in the business of regenerative food and farming. Through its farmland portfolio and Dirty Clean Food brand, the company grows, markets and distributes food products.

More specifically, Dirty Clean Food offers regeneratively grown animal and plant-based products, such as lamb, beef, milk, and bread, to consumers located primarily in Australia and South-East Asia.

Wide Open Agriculture is dual-listed on the Frankfurt Stock Exchange and has been publicly listed in Australia since July 2018.

Details of the capital raising

Wide Open Agriculture shares resumed trading on the ASX this morning after being placed in a trading halt at the beginning of the week.

The resumption of trading came as the company announced the successful completion of a $3 million institutional placement.

The placement will see Wide Open Agriculture issue around 11 million new ordinary shares to institutional and sophisticated investors at a price of 27 cents apiece. This represents an 18.2% discount to the company’s last closing price of 33 cents.

Wide Open Agriculture stated that the placement was strongly supported by existing shareholders. It also introduced a number of new, high net-worth investors to its share register.

The company believes the strong demand for the placement provides validation of its growth strategy to increase revenue and launch additional products for its growing customer base.

Following this boost to its cash reserves, Wide Open Agriculture will now work towards expanding and diversifying its online product offering, launching oat milk and plant-based protein products for Australian and global markets, and accelerating sales of regenerative meat.

Commenting on the placement, managing director Ben Cole said:

“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of WOA’s execution to date, but also demonstrates the belief that the Company is positioned to grow alongside the rapidly expanding base of conscious food consumers and regenerative farmers.”

“Our highly capable, experienced team is now ready to grow the Company and maximise shareholder return and scale our positive impact,” he added.

At the time of writing, Wide Open Resources shares are changing hands at 40 cents apiece, taking the company’s current market capitalisation to just $28 million. 

More reading

• Fund managers have been buying these ASX shares
• Here’s why I think CBA shares are a good buy today
• 3 more founder-led ASX 200 shares to buy today
• 3 tips for surviving an ASX recession
• CSL share price lower despite COVID-19 vaccine news

Motley Fool contributor Cathryn Goh 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 Wide Open Agriculture share price flies higher after completing capital raising appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XxtlH9

Commonwealth Bank of Australia (ASX: CBA) shares are currently selling at a price-to-earnings ratio (P/E) of 12.41. This is just below the company’s 10 year P/E average of 13.7. Year-to-date the CommBank share price is still down by 14.3%. For me, this appears a relatively good entry price for a bona fide ASX blue chip. Moreover, beyond price, the company is working diligently to build value.

CBA wealth

Colonial First State has long been the CommBank’s wealth-management arm. On 15 March CommBank announced it would be selling 55% of Colonial to US private equity firm KKK for AUD$1.7 billion. This will allow the bank to simplify its business model and focus on its core business of banking.  

CommBank and KKK have both announced plans to invest significant capital into Colonial. Among these is a more rapid transition to digital channels. 

Commonwealth Bank CEO Matt Comyn said:

“We are confident that together with KKR, we can provide CFS with an increased capacity to invest in product innovation, new services and its digital capabilities. We have a shared vision for CFS to be one of the leading superannuation and investment businesses in Australia.”

Branching into buy now pay later (BNPL)

CommBank announced it was to launch Swedish private fintech, Klarna in Australia on 30 January. A plan later derailed by the COVID-19 outbreak. CommBank holds a 5.5% stake in Klarna. Increasing from its original 1.8% holding. The companies will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business.

Given the events in the BNPL sector this week this is a very big deal. Although it recently made a loss, Klarna is already one of the giants in the BNPL space. In fact, it was the original pioneer. CommBank’s 5.5% purchase provides access to an existing large customer and merchant base with an established beachhead in the USA. 

CommBank is Australia’s largest payments processor. This means its 50%-owned Klarna Australian operations will start with immediate national coverage.

CBA shares

 CommBank shares are selling at a reasonable price of $68.76 at the time of writing and it is well-positioned for future growth. Its $1.5 billion allowance for COVID-19-related damage is covered by the sale of 55% of Colonial. Furthermore, Colonial is more likely to increase earnings as part of the core business of a private equity firm. Lastly, its position in Klarna sets it up to play a dominant role in the Australian BNPL sector, as well as on the global stage. 

There are still uncertain times ahead to be sure. However, I believe that CommBank shares are a wise investment at this price over the medium to long term. It will lock in steady capital growth, as well as locking in a future dividend at a 12-month trailing average at 6.28%.  

More reading

• Ready to invest your first $2,000 in ASX shares? Do these 3 things first
• 2 ASX growth shares I’d buy before Afterpay shares
• Why today might be a good day to buy NAB and Westpac shares
• ASX 200 rises 0.8%, travel shares fly higher
• The 10 shares that significantly move the ASX 200 index

Motley Fool contributor Daryl Mather 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 Here’s why CBA shares are a good buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2MwO5s9

As I mentioned here earlier this week, founder-led companies have traditionally outperformed the rest of the market. 

This is believed to be because founders are focused on the long term and building something significant, whereas some professional CEOs have a tendency to be focused on short term goals.

With that in mind, I think having exposure to founder-led companies could be a great thing for a portfolio.

Here are three more founder-led shares that I would buy for the long-term:

Goodman Group (ASX: GMG)

The first founder-led share to consider is Goodman Group. It is an integrated commercial and industrial property group. I’m a big fan of the company due to the quality and growth potential of its portfolio, which has been put together expertly by co-founder and Group Chief Executive Officer, Gregory Goodman. He has played an integral role in establishing its specialist global position in the property market through various corporate transactions. This includes takeovers, mergers, and acquisitions. This has led to its shares generating market-beating returns for investors over the last decade and I expect more of the same in the future. Especially given its exposure to industries benefiting from structural tailwinds like ecommerce.

Jumbo Interactive Ltd (ASX: JIN)

This online lottery ticket seller was founded by Mike Veverka all the way back in 1995. He remains the company’s CEO today. A lot has changed with the business since then, but all for the better. As well as operating the Oz Lotteries website, Jumbo now has its software as a service platform. This allows other lotteries to run their online operations via the platform. It also entered into the UK market last year via the acquisition of Gatherwell Limited. Combined, I feel this puts the company on a path to achieve its target of $1 billion in ticket sales on the Jumbo platform by FY 2022. This compares to its ticket sale estimates of $335 million to $341 million in FY 2020.

SEEK Limited (ASX: SEK)

Another founder-led company which I think is a great long term option for investors is SEEK. The job listings giant is still led by Andrew Bassat, who co-founded the company in 1997 along with his brother Paul Bassat and Matt Rockman. As with Jumbo, SEEK has set itself some bold growth targets for the medium term. It is targeting revenue of $5 billion later this decade, up from $1,537.3 million in FY 2019. Due to the strength of its core ANZ business and the rapidly growing Zhaopin business in China, I think SEEK has a great chance of delivering on its target.

More reading

• Why I would buy these outstanding ASX 50 shares right now
• Where to invest $2,000 in cheap shares
• These ASX 200 shares could be perfect for a retirement portfolio
• 3 high quality ASX blue chip shares to buy in June
• 3 exciting ASX growth shares for stellar long term returns

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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.

The post 3 more founder-led ASX 200 shares to buy today appeared first on Motley Fool Australia.

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