The Buru Energy Limited (ASX: BRU) share price is charging higher today after the small-cap ASX energy share provided an operations update. At the time of writing, Buru shares have rallied 15% to 11.5 cents per share, taking the company’s current market capitalisation to around $50 million.

Buru Energy is an oil and gas exploration and production company. It is focused on exploring and developing the petroleum resources of the Canning Basin in the Kimberley region of Western Australia. With this, the company holds interests in a portfolio of exploration permits covering around 5.5 million gross acres in the Canning Basin. It also has a 50% operating interest in the currently producing Ungani Oilfield.

What did Buru Energy announce?

This morning, Buru provided an operations update regarding Ungani oil sales and production. Notably, the company revealed it has been buoyed by the improving crude market, with increases in the Brent oil price during May resulting in additional revenue from the May lifting of around US$200,000.

The company also announced that the next lifting of Ungani crude from Wyndham Port, which is expected to be in mid-July, has been sold on a spot basis.

The Ungani joint venture plans to continue to sell crude on a spot basis while it reviews the potential for entering into another longer-term offtake agreement.

The received price of the July lifting will be based on the average dated Brent oil price for the month of July, less an agreed discount to reflect an increase in marine transport charges to a refinery in Asia.

Meanwhile, Ungani field production is currently 1,250 barrels of oil per day and a series of well optimisation activities have been planned.

Buru also noted that its current farm-out process is progressing well. Various parties have accessed the virtual data room and with COVID-19 restrictions easing, locally-based interested parties are now able to physically attend Buru’s office to access the geophysical database.

Commenting on today’s update, executive chair Eric Streitberg said:

“We are very pleased and relieved to see the firming oil price that gives us a healthier return from our oil sales. Although we are facing higher shipping charges and tightening refinery terms, there is still a good market for our particular high quality crude from Ungani.

Our strong cash position and our high quality exploration portfolio puts us in a good position to weather the current storms and it has also been very pleasing to see the share price improving. Although like many other companies our share price is still near historic lows, it is at least now reflecting a value greater than our cash position.”

More reading

• Should you be an ASX bull or bear right now?
• Will the HomeBuilder stimulus boost ASX 200 building shares?
• These ASX healthcare shares could be long term market beaters
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance

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.

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Finding shares with a dividend yield over 10% requires looking in a few odd places and sometimes making a few sacrifices. Income investing requires a bit more initial capital and a bit more time.

The practice of dividend harvesting is still popular; where you buy high-yielding shares prior to the ex-dividend date and then sell them off again shortly afterwards. However, I personally have found that to be fraught with risks. 

 The truly great income investing opportunities were around 23 March when the market bottomed out. But there are still very good investments available if you look for them.

High-confidence dividend yield, short duration

Orora Ltd (ASX: ORA) goes ex-dividend on 19 June. At Wednesday’s closing price it would produce a special dividend payout of 13.6%. Moreover, the company also received a windfall from the sale of one of its businesses. This means it is going to distribute an additional payment to shareholders. At yesterday’s closing price this means a total payment of 18.1% to be paid on 29 June. 

Orora has consistently grown its dividend by about 13.8% over the past 6 years. While this is a special dividend, the company’s current low share price increases the yield of future payments. The Orora share price is down by 12.9% YTD.

Out-of-favour shares

Yancoal Australia Ltd (ASX: YAL) is one of those shares that some people may well refuse to own. Despite this, it is a very well run company and has positioned itself for further production growth. It currently trades at a very low price-to-earnings ratio of 3.95. Its present twelve-month trailing dividend is 14.68%. Which is an almighty yield from a company worth $2.8 billion.

The company has only been paying dividends for the past 2 years. However, its policy statement reads “…Yancoal will target a dividend payout of (A) 50% of net profit after tax (pre-Abnormal Items); or (B) 50% of the free cash flow (pre-Abnormal Items), whichever is higher.”

Foolish takeaway

Presuming you split $5,000 evenly between these two options, and that the Yancoal dividend remained the same or higher, the return would be at least $818 (16.4%) a year from now. 

More reading

• 3 cheap ASX manufacturing shares for the supply chain boom
• Top ASX Stock Picks for June 2020
• Buy this ASX 200 share now for an 18% dividend yield in a month
• Has China banned Australian coal?
• Top ASX Dividend Stock Picks for May 2020

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.

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Do you have $10,000? I think ASX shares are the perfect place to invest it.

I believe ASX shares are a great way to grow your wealth with minimal effort. But in this coronavirus era we need to be careful. I’d only want to buy shares with good prospects that will be fine if there’s a worse-than-expected downturn.

Here are long-term ASX shares I’d go for:

Bubs Australia Ltd (ASX: BUB) – $2,000

Bubs is an exciting infant formula business which specialises in goat milk products. Just like previously successful infant formula businesses, Bubs is growing revenue strongly in Asia. Both China and Vietnam are generating good growth right now for Bubs.

The ASX share is steadily adding new products, including an organic grass-fed cow infant formula product which may also prove to be popular.

Growth is accelerating due to the coronavirus and Bubs generated a positive operating cashflow in the last quarter. It’s in a strong position.

MFF Capital Investments Ltd (ASX: MFF) – $3,500

MFF Capital is a listed investment company (LIC). It’s run by the high-performing Chris Mackay who has recently moved almost half of the portfolio to cash. So at the moment MFF Capital is a good hedge against another US share market fall which could easily happen because of what’s going with the pandemic and riots.

ASX shares are great, but globally there are some fantastic businesses to be invested in like Visa and Mastercard. It’s these types of businesses that will benefit from the shift to online shopping.

Pushpay Holdings Ltd (ASX: PPH) – $3,000

Pushpay is an electronic donation business. At the moment its focus is facilitating donations from congregations at medium and large US churches.

There is a strong demand for digital giving right now due to the social distancing measures in the US. That’s partly why management are expecting earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double in FY21.

Pushpay is one of my favourite ASX shares at the moment because of how much growth it could achieve over the long-term. It’s targeting a $1 billion revenue opportunity in the US church sector. There are other countries and other not-for-profit areas it can grow in.

Brickworks Limited (ASX: BKW) – $1,500

The Brickworks share price has climbed 23% since the middle of May, so I don’t think it’s as good value now as a few weeks ago. But I think it’s still compelling.

The value of its Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares continues to grow. Its 50% stake in the industrial property trust will be even more important because of the shift to ecommerce.

The ASX share could be a beneficiary from the government’s plan to encourage house building and large renovations, which would really help the Australian building products division. I think construction could recover quicker than some expect.

Foolish takeaway

I believe all four of these ASX shares have a good chance of beating the market over the next four years. I like the optionality that MFF Capital provides with its large cash balance, but Pushpay and Bubs could also grow into quite large businesses over time.

More reading

• Why it’s a good week to buy international shares
• Should your share portfolio actually be 50% cash right now?
• 3 Warren Buffett ASX dividend shares you can buy right now
• 3 of the best ASX shares to buy with $3,000 right now
• Why I’m not afraid to invest in shares during this recession

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The S&P/ASX 200 Index (ASX: XJO) looks set to continue its stellar run on Thursday. In late morning trade the benchmark index is up 1% to 6,003.1 points.

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

The Corporate Travel Management Ltd (ASX: CTD) share price is up 7% to $13.12. This is despite there being no news out of the corporate travel booker. This latest gain means that Corporate Travel Management’s shares are now up approximately 200% from their March low.

The SKYCITY Entertainment Group Limited (ASX: SKC) share price has jumped 7% to $2.77. Investors have been buying the casino and resorts operator’s shares since the release of an update on Wednesday. That update revealed that its New Zealand operations have performed well since reopening in the middle of May. Investors appear optimistic that the worst is now behind the company.

The Vocus Group Ltd (ASX: VOC) share price is up 3.5% to $3.23. This morning Vocus announced that it has refinanced its debt and reaffirmed its guidance for FY 2020. Vocus expects its earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of $359 million to $369 million. This compares to FY 2019’s EBITDA of $360.1 million. Its core Vocus network services business has been performing well. It is expecting the key segment to deliver EBITDA growth of 10% this year.

The Westpac Banking Corp (ASX: WBC) share price has continued its run and is up almost 2% to $18.26. Investors have been buying Westpac’s shares despite it releasing an update on its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF ) compliance issues. Australian oldest bank blamed the compliance issues on three primary factors. This includes some areas of AML/CTF risk not being sufficiently understood within Westpac.

More reading

• Why this ASX 200 telco share is storming higher today
• Westpac share price on watch after AUSTRAC update
• ASX 200 jumps 1.8%, Australian headed for recession
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high
• Is the Westpac share price a buy?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another very strong gain. At the time of writing the benchmark index is up 1.3% to 6,018.3 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Austal Limited (ASX: ASB) share price is down over 3% to $3.37. The shipbuilder’s shares have come under pressure since it announced the retirement of its CEO on Wednesday. Austal has found its replacement already, though. Chief Operating Officer, Patrick Gregg, will take over from the retiring David Singleton on 1 January 2021. Until then, Mr Singleton will continue to work closely with his replacement to ensure there is a smooth handover.

The Ecofibre Ltd (ASX: EOF) share price has crashed 7% lower to $2.88. This morning the hemp products company advised that the protests in the United States are expected to impact near term sales in its core Ananda Health business. In light of this, Ecofibre has withdrawn its second half guidance.

The Northern Star Resources Ltd (ASX: NST) share price is down 7% to $13.27. Investors have been selling Northern Star and the rest of the gold miners on Wednesday after the price of the precious metal sank lower. Improving risk appetite is weighing heavily on the price of gold and other safe haven assets. At the time of writing the S&P/ASX All Ordinaries Gold index is down 3.8%.

The Nufarm Limited (ASX: NUF) share price has dropped almost 9% to $5.01. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded Nufarm’s shares to an underperform rating with a $4.85 price target. Its analysts appear concerned over the company’s prospects in the important fourth quarter.

More reading

• The latest ASX 200 stocks to be upgraded to “buy” amid the recession
• Why Austal, Evolution, Newcrest, & Pro Medicus are tumbling lower
• 3 cheap ASX manufacturing shares for the supply chain boom
• Forget cheap stocks. Why investors should watch ASX gold shares instead
• These 5 ASX 200 shares were last week’s biggest winners

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

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Don’t panic. The racing share market may have you wondering where to invest, but you haven’t missed it yet. There are still plenty of opportunities to buy great shares for income, growth or value. In fact, there are always opportunities. 

If I had $2,000 spare today I would be looking squarely at dividing it between both growth and value opportunities. I believe many of today’s shares are still oversold and represent great value. Personally I would be looking to divide it 25% in growth and 75% in value shares.

Income investing requires a different focus and timeframe, in my experience. 

Where to invest for growth

Of the available growth shares, I would be looking very hard at Zip Co Ltd (ASX: Z1P) even after the recent rise. Growth shares can be a risky business and it is difficult to know where to invest. Today, it’s easy to see that Amazon.com (NASDAQ: AMZN) was going to be a behemoth. It was a lot harder to see it clearly in 2010, though.

In fact, I thought it was overpriced!

At Tuesday’s close, Zip Co was valued at $2.4 billion. A massive leap in two days to be sure. But I believe the company still has a long way to go. Potentially further, even, than Afterpay Ltd (ASX: APT).

Zip has more financial products than Afterpay and a track record of making profits. The recent US acquisition gives it access to a $5 trillion retail market. It may be hard to see now, but in the future, I believe we will think today’s price was cheap. 

Value investing

When considering where to invest for value, I have always looked for undervalued mature growth shares. The COVID-19 pandemic has created this opportunity for us. 

I believe that Altium Limited (ASX: ALU) and Jumbo Interactive Ltd (ASX: JIN) are two really great examples of this. 

Altium, the PCB design software producer, has returned investors over 130 times their initial investment since 2010. Its sales growth in the past two years has been better than the previous 7 years. I believe it is slightly undervalued in the market today.

Jumbo Interactive is one of the great shares on the S&P/ASX 200 (INDEXASX: XJO). It has returned 25 times the initial investment since 2010. Despite this, it had a greater leap in sales last year than in any previous years. In addition, it was forecasting another increase this FY before the coronavirus.

In average times, approximately 75% of lottery sales are via retail outlets. With these closed, but lottery continuing, it is likely they have picked up additional revenues via internet sales.

Foolish takeaway

The ASX is full of cheap value opportunities for people with limited funds who are wondering where to invest. You just need to spend some time looking for them.

More reading

• Why the shares of Afterpay rival Openpay are up 840% since March
• Is the CBA share price cheap today?
• Meet the ASX stocks to benefit from the new $688m home stimulus
• Why Zip Co and these ASX shares just zoomed to new highs
• Should the Xero share price have a P/E ratio of 4,000?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daryl Mather 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 Amazon and Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, and ZIPCOLTD FPO and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Openpay Group Ltd (ASX: OPY) share price has been an incredible performer over the last two and a half months.

Since crashing as low as 32 cents on 23 March, the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival’s shares have jumped a whopping 840% to $3.02.

Why is the Openpay share price rocketing higher?

Investors have been buying Openpay and other buy now pay later providers in recent weeks for a number of factors.

One is the belief that the pandemic has accelerated the rapid adoption of the payment method due to retail spending shifting online during the lockdowns.

Both Afterpay and Zip Co have reported stellar sales and customer growth throughout the pandemic. And this has come without any notable deterioration in bad debts. This appears to have convinced the market that their business models are more robust than first believed.

Openpay has also reported strong growth of its own. During the third quarter the company reported a 203% increase in active plans, a 113% lift in active customers, and a 63% jump in active merchants on its platform. This strong form continued in May.

Its active merchants now include the likes of Bunnings Warehouse, Bupa, JD Sports UK, Repco, Smiggle, and Spotlight.

But Openpay’s shares won’t be building on its strong gains today. This morning the payments company requested a trading halt.

Why are its shares in a trading halt?

It appears as though management has decided to take advantage of its incredible share price gain to raise capital.

No details have been released officially by the company, but the AFR is reporting that Openpay is seeking to raise $30 million to accelerate its expansion in the UK market and strengthen its balance sheet.

According to the report, the company is aiming to raise the funds at $2.40 per share, which represents a 20.5% discount to its last close price.

These certainly are exciting times for Openpay and the buy now pay later space in general.

More reading

• Where to invest $2,000 in cheap shares
• Why Zip Co and these ASX shares just zoomed to new highs
• ASX 200 jumps 1.8%, Australian headed for recession
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• Afterpay share price hits a new record high: Is it too late to invest?

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 AFTERPAY T FPO and ZIPCOLTD FPO. 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 Dimerix Ltd (ASX: DXB) share price has raced out of the gates this morning following news that one of its treatments has been included in a global COVID-19 clinical study.

Dimerix is a clinical-stage biopharmaceutical company that develops new therapies in areas with unmet medical needs. In doing so, the company leverages its scalable proprietary platform technology, Receptor-HIT, to rapidly screen and identify new drug opportunities.

Why the Dimerix share price is flying higher

This morning, Dimerix announced that its novel treatment DMX-200 has been selected for inclusion in the REMAP-CAP global study protocol for acute respiratory distress syndrome (ARDS) caused by COVID-19.

The REMAP-CAP clinical study is endorsed by the World Health Organisation and has been named by the chief medical officers of the UK as a key clinical trial for COVID-19.

REMAP-CAP is an international platform trial run by a number of leading experts, institutions, and research groups. The trial already has several existing treatment domains including anti-viral, immune-modulation and immunoglobulin treatment arms. DMX-200 will now be part of a new treatment group to compare the effect of a number of treatment options on the clinical outcomes of COVID-19 patients requiring hospital care.

Upon regulatory approval, Dimerix believes DMX-200 could be the only investigational new drug in the study since all of the other candidates are a repurposing of existing approved drugs.

The overall REMAP-CAP study plans to include more than 7,000 patients at study sites across Asia-Pacific, Europe and North America. Dimerix stated it will work closely with REMAP-CAP to obtain the necessary regulatory and ethics approvals before providing DMX-200 to sites from its existing pharmaceutical-grade manufactured supply.

In addition to potentially benefitting ARDS patients with COVID-19, Dimerix is currently developing DMX-200 for both diabetic kidney disease and focal segmental glomerulosclerosis (a kidney-related disease).

Commenting on today’s update, Dimerix CEO and managing director Dr Nina Webster said:

“We are extremely pleased to be in a position to support this global initiative investigating the potential of multiple therapies to treat COVID-19 patients dying of ARDS”.

“Dimerix is uniquely positioned to support the global effort in identifying COVID-19 treatments, as well as having two Phase 2 renal clinical studies completing mid- 2020,” she added.

The Dimerix share price rocketed as much as 120% this morning to an intra-day high of 59.5 cents in early trade. It has since pulled back to 44 cents at the time of writing, representing a 63% jump. This takes Dimerix’s current market capitalisation to around $80 million.

More reading

• Got $5,000 for a dividend yield over 10%?
• Have $10,000? This is where I’d invest it into ASX shares
• Why Corporate Travel Management, SKYCITY, Vocus, & Westpac are pushing higher
• Why Austal, Ecofibre, Northern Star, & Nufarm are dropping lower
• Where to invest $2,000 in cheap shares

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.

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The Vocus Group Ltd (ASX: VOC) share price is storming higher on Thursday after the release of an announcement.

In morning trade the specialist fibre and network solutions provider’s shares are up 5.5% to $3.30.

What did Vocus announce?

Investors have been buying Vocus shares after it announced that it has both refinanced and extended the duration of its existing debt facilities and provided an update on its FY 2020 guidance.

Vocus’ new syndicated debt facility (comprising A$1,255 million and NZ$135 million) increases the duration of its debt to provide ongoing financial stability and flexibility.

And while the interest cover and gearing ratios are unchanged, management notes that the Net Leverage Ratio (Net Debt/EBITDA) covenant has been amended to a maximum of 3.25x. It will then reduce to 3x from 30 June 2021.

This mean Vocus is currently operating well within its covenant. At the end of December its Net Leverage Ratio stood at 2.8x and is expected to reduce at the end of FY 2020.

Vocus’ CEO and Managing Director, Kevin Russell, believes this refinancing and the reaffirming of its guidance is a testament to the strength of the company.

Mr Russell said: “Refinancing our debt and reaffirming guidance in the current market environment shows the underlying strength of Vocus’ business. The new loan facility is a strong platform that gives Vocus financial stability and flexibility as we enter the next phase of the company’s growth and business transformation.”

Guidance.

In FY 2020 Vocus expects its earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of $359 million to $369 million. This compares to FY 2019’s EBITDA of $360.1 million.

While today’s guidance is within its previous range, it has been narrowed to the low end. In February the company provided full year EBITDA guidance of $359 million to $379 million.

Management revealed that its core Vocus network services business has been doing the heavy lifting. It is expecting this key segment to deliver EBITDA growth of 10% this year.

More reading

• Why the Vocus share price can race ahead later this month
• Telstra share price down 21% since February. Is it now in the buy zone?

Motley Fool contributor James Mickleboro 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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There’s a school of thought that once stimulus measures are wound down and JobKeeper is finished, we’ll witness another share market sell-down in response to any revelations that the economy has gone to ‘hell in a hand basket’.

Of course, this may never eventuate. All the early signals suggest that the recovery we’re on looks much better than anyone expected. However, it’s never a bad idea to add some good defensive shares to your portfolio. These shares are more likely to hold up when others are falling. Given that investors are currently looking at the market through rose coloured glasses, bringing some contrarian thinking to the basket of shares you hold could have a lot merit.

When looking for defensive shares, it’s important to look for companies that have low debt on balance sheet, sustainable and high quality underlying core earnings, quality management, and sufficient cash to seize growth opportunities. It’s also preferable that they aren’t in a sector at the apex of rapid technology and/or regulatory upheaval.

While these shares are often slow-burners in terms of strong growth, they typically have the capacity to retain their core earnings when the markets are in flux – like now.

Here are 3 ASX shares to consider.

Hansen Technologies Limited (ASX: HSN)

While this technology mid-cap doesn’t have the strong organic growth of local peers, like TechnologyOne Ltd (ASX: TNE), Whispir Ltd (ASX: WSP), and Appen Ltd (ASX: APX), the quality of its underlying earnings can’t be understated.

Two thirds of the company’s revenue is from recurring software fees. While not dynamic, this revenue is at the very least relatively bankable, regardless of what the economy is doing. The stock also earns kudos for doing what few companies are prepared to do right now – provide earnings guidance. Given the state of the economy, its full year guidance of operating of revenue between $298 million and $300 million – slightly lower than the original $300 million to $305 million – is encouraging.

What I also like about the company is its management’s track-record in growth by acquisition. With a net debt to equity ratio of around 59%, the business looks well positioned to afford future acquisitions. At $3.08, Hansen shares are trading at a 23% discount to Bloomberg’s 12-month price target of $4.02.

Spark Infrastructure Group (ASX: SKI)

As a leading electric utilities business with $18 billion of total electricity network assets, Spark’s core earnings have a high degree of resilience about them. Much of that resilience was reflected in the company’s Macquarie Investor Conference Presentation in early May. Spark reconfirmed its FY2020 distribution guidance of at least 13.5 cents per share.

Despite cost increases linked with summer bushfires and tree management, the latest financial result saw earnings before interest, tax, depreciation and amortisation up at each of its largest business units – CitiPower and Powercor in Victoria and SA Power Networks in South Australia. The result was buoyed by rising regulated tariffs and higher services revenue. Then there are the returns at electricity transmission network TransGrid, of which Spark owns 15%.

Government tariff adjustments on electricity prices tend to move in tandem with economic activity – and hence key indicators like the 10-year bond yield. A return to more normal bond yields beyond fiscal 2021, which hit record lows mid-2019, should improve Spark’s returns and distributions over the longer haul.

While the Spark share price has bounced from a low of $1.72 mid-March to $2.15, it still trades at 6% discount to Goldman Sachs’ target price of $2.30.

ASX Ltd (ASX: ASX)

ASX’s standout defensive features come from its near-monopoly status as operator of Australia’s primary market for the listing and trading of securities. Equally compelling is the quality of its balance sheet, and notably its debt-free position, and strong cash balance.

To its credit, the company was quick to warn the market of a significant decline in cost growth for FY20 (below guidance of 6–8%) due to COVID-19. While projections within the current market are problematic, the company expects net interest earned on collateral balances – which accounts for around 90% of total net interest income – to remain elevated in the near term.

Given the company’s dominant market position, history of cost containment, and ability to deliver consistently good EBIT margin, it looks better positioned than the market at large to weather near-term market volatility. This bodes well for a sustainable dividend payout ratio of around 90%.

In my opinion it’s worth watching the ASX Ltd share price for dips following future market corrections, with sub-$70 making for a more comfortable buying position than its current price of $88.57.

More reading

• Why Zip Co and these ASX shares just zoomed to new highs
• Revealed: 5 dividend shares for reliable income
• Leading brokers name 3 ASX shares to sell today
• Morgans warns investors to sell these ASX 200 shares in the rally
• ASX 200 slips 0.4% lower

Motley Fool contributor Mark Story has no position in any of the shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. 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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