• 3 ASX shares now trading at crazy cheap prices

    ASX investing

    Cheap ASX shares can be a great way to beat the market if you’re able to find opportunities that other people haven’t identified.

    Some growth shares like Afterpay Ltd (ASX: APT) are now priced so highly that it’s hard to see how much further they can rise.

    Finding unloved gems could be how investors beat the market over the next six months (and the longer-term) at the current share prices.

    Here are three examples:

    Vitalharvest Freehold Trust (ASX: VTH)

    This is one of the only agricultural real estate investment trusts (REITs) on the ASX. Currently, it owns four berry properties and three citrus properties. These are some of Australia’s biggest berry and citrus properties. All of the properties are leased Costa Group Holdings Ltd (ASX: CGC), a high-quality tenant.

    The ‘cheap’ part of this ASX shares comes with the discount to the stated net asset value (NAV). At 31 December 2019 it had a net asset value (NAV) of $0.95 per unit. Assuming no change to the NAV – it may have grown since then – today’s share price is an 18% discount to the last NAV. That’s a big discount. Rural Funds Group (ASX: RFF) trades at a premium to its NAV.

    I think the discount to the share price could close as investors learn of the growth plans of Primewest Group Ltd (ASX: PWG), which is the new investment manager. It plans to change the name to Primewest Agri-Chain Fund and invest in a wider group of different assets (not just farms) including processing and manufacturing facilities for food, food and beverage packaging facilities and storage facilities related to food.

    The rebound of performance of Costa’s farms could also help as the worst of the drought seems to be over. At the current share price, Vitalharvest has a distribution yield of around 6% right now.

    NAOS Small Cap Opportunities Company Ltd (ASX: NSC)

    This is a listed investment company (LIC). It invests in small caps on the ASX and maintains a high-conviction portfolio of around 10 names.

    LICs can give your portfolio targeted diversification. You don’t need to own every single share out there if you just own the more promising ones that do well over the long-term. At the moment it owns shares like MNF Group Ltd (ASX: MNF), Consolidated Operations Group Ltd (ASX: COG) and BSA Limited (ASX: BSA).

    This ASX share is cheap because it’s trading at a very large discount to its net tangible assets (NTA). At the end of June 2020 it had a pre-tax NTA of $0.68 compared to today’s share price of $0.49 – that’s a discount of 28%.

    I’m not sure what a fair discount for a LIC is, but a 28% discount is very high. High-conviction portfolios can underperform for a longer time period, but sometimes performance can revert back to the long-term average. If that happens then the NTA discount may close up.

    At the current NAOS Small Cap Opportunities share price, it has a grossed-up dividend yield of 11.7%.

    Tassal Group Limited (ASX: TGR)

    The biggest fish business in Australia looks like a cheap ASX share to me.

    Salmon and prawns are seen as healthier protein alternatives for consumers. The ASX share continues to diversify its farms geographically and its fish biomass is steadily growing. The company has three different growth avenues – domestic retail, domestic wholesale and export.

    Tassal says that there is a rise in consumer demand for sustainable products that have open traceability, particularly products that are seen as quality Australian-made produce.

    There is uncertainty in FY20 with COVID-19, but growth is expected to return in FY21. At the current Tassal share price it’s trading at 11x FY21’s estimated earnings. One estimate puts the FY21 grossed-up dividend yield at 7.5%, which is a good way to be rewarded for owning shares.

    Foolish takeaway

    I think all three of these ASX shares look very cheap at today’s prices. I think Vitalharvest could be the bet most likely to go well because there are several reasons why its share price could rise over the next 12 months: the change in manager, acquisitions, a turnaround in variable rental profit and higher distributions.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    Motley Fool contributor Tristan Harrison owns shares of NAO SMLCAP FPO and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO, MNF Group Limited, and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • The ASX tech ETF you can buy and hold forever

    Global technology shares

    It’s hard to pick a tech share and get it right. Multitudes already exist with new ones coming on the market regularly. Buying single tech shares means putting your faith in that company to outperform in an extremely competitive industry, however, sitting on the sidelines means watching tech companies become so expensive it’s hard to get a foot in the door.

    To further complicate things, not only is it a question of which company to invest in, but which country. With the US markets producing some of the world’s most well-known tech companies, it seems like an easy choice to look overseas for returns.

    However, as an Aussie investor, this is easier said than done, particularly if you are trying to invest in multiple countries or gain access to multiple exchanges. But putting tech in the ‘too hard’ basket can mean missing out on staggering returns overseas.

    In my view, the solution lies in a global tech exchange-traded fund (ETF):

    Morningstar Global Technology ETF (ASX: TECH)

    With a ticker like ‘TECH’, this one should be easy to remember. In my opinion, Morningstar have done a great job putting this fund together and I really like the global exposure. Although there are alternative tech ETFs on offer, this one is top of my list.

    Country allocation

    At the time of writing, the fund’s global allocation is: USA (74.1%), Germany (7.1%), Switzerland (6.2%), Israel (4.1%), Japan (3.8%), Hong Kong (2.4%) and France (2.2%) approx. This is a great spread and really provides that global exposure investors need for the tech industry.

    Top 10 holdings

    At the time of writing, TECH’s top 10 holdings include: Infineon Technologies (5.0%), Splunk Inc (4.4%), STMicroelectronics (4.4%), Microchip Technology Inc (4.3%), Nice Ltd (4.2%), Broadcom Inc (4.1%), Microsoft Corp (4.0%), Servicenow Inc (4.0%), Zendesk Inc (3.9%) and Guidewire Software (3.9%).

    Performance

    The fund’s 3-year return at the time of writing clocks in at around 24% per annum and its 3-month return sits at approximately 17%. That’s nothing to sneeze at, considering the current state of the economy. Compared with the S&P/ASX 200 Index (ASX: XJO), which has delivered a 3-year return of just over 4% and a 3-month return of around 10%. I could also provide comparisons to multiple overseas markets, however the value of adding this particular ETF to your portfolio is global diversity and exposure to tech outside of Australia, so it’s pertinent to provide an ASX 200 comparison.

    Fees

    Something to be aware of with most ETFs is that they have annual fees. TECH has annual management costs of 0.45%. According to CommSec, ETFs on the ASX can range in fees from 0.1% to 1% per year, which puts TECH roughly in the middle as far as costs go. 

    Trading and investing

    Buying and selling ETFs is done in the same way as regular shares, directly through your chosen broker. Simply search for the ETF using the ticker above.

    Foolish takeaway

    The returns that tech shares can provide are staggering at times. With our world evolving and becoming more digital in nature by the day, I feel that tech shares should form a part of all portfolios, however, choosing the right ones can be both daunting and expensive.

    Investing through ASX ETFs such as TECH means exposure to global tech players. Over multi-year periods, compounded returns in tech ETFs can be hard to beat – and you never know, your ETF might just catch the next Amazon!

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Glenn Leese has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ETFS Morningstar Global Technology ETF. 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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  • Why brokers think you should buy the slumping Woodside Petroleum share price today

    oil gas LNG

    The Woodside Petroleum Limited (ASX: WPL) share price tumbled for the third consecutive day to its lowest level this month, but brokers think the weakness is a buying opportunity.

    Shares in the ASX energy stock slumped 1.4% to $20.66 on Thursday when the S&P/ASX 200 Index (Index:^AXJO) fell 0.8%.

    In contrast, its peers are faring better. The Oil Search Limited (ASX: OSH) share price jumped 1.3% to $3.14, while the Beach Energy Ltd (ASX: BPT) share price added 1% to $1.51.

    Big write-down hurts confidence

    Sentiment towards the Woodside share price took a hit after management revealed it would write-down the value of its assets by US$3.9 billion ($5.6 billion).

    This is largely due to the slump in oil and gas prices, as well as the uncertain demand outlook due to the global COVID-19 pandemic.

    Baby and bathwater

    But brokers like JP Morgan aren’t put off. In fact, it reiterated its “overweight” (meaning buy) recommendation on the stock.

    “We believe Woodside’s strong operating performance for the quarter has been somewhat lost following weak realized prices and the asset impairments that were announced,” said the broker.

    JP Morgan’s price target on the stock is $25.70 a share.

    It isn’t along in feeling bullish about Woodside. Goldman Sachs also came out swinging for the stock.

    Weak sales overshadows strong production

    Woodside posted a record second quarter production of 25.9 million barrels of oil equivalent in the second quarter of 2020 but revenue was below the broker’s expectation. This is because Woodside sold a greater amount of LNG at the weak spot price.

    “Our global team expects LNG spot prices to rebound from here, where we assume a [long-term] price of US$7.25/mmbtu,” said Goldman.

    “We maintain a Buy rating and highlight the business is well positioned versus ASX peers to ride out the low oil price environment and to continue to invest in future growth for the portfolio.”

    At the broker’s target price of $33.70 a share, the assumed long-term oil price is US$60 a barrel.

    Acquisition opportunities

    Meanwhile, Credit Suisse is another bull. The broker believes that the asset write-down may facilitate mergers and acquisitions (M&A) as others follow its lead.

    This is particularly applicable to the ownership shake-up of the North West Shelf assets and the broker sees material upside from growth at Woodside’s Scarborough/interconnector gas project.

    “WPL’s resilience to low oil, and upside potential is underappreciated by the market in our view, although patience through 2022 may be required to see upside come to fruition,” said Credit Suisse.

    The broker’s 12-month price target on the stock is $25.24 a share.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Brendon Lau 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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  • 2 ASX shares for investors aged 50+

    happy couple discussing finances

    Investors aged 50 and over would do well to look at ASX shares as the best way to protect and grow their money.

    The outlook for property looks very uncertain with CoreLogic now reporting that national property prices are going backwards and rents are under pressure. Cash in the bank isn’t going to earn much interest.

    I think that investors aged over 50 could go for these two ASX shares:

    Share 1: Brickworks Limited (ASX: BKW)

    Brickworks is a diversified property business. Most people would know it for its Australian building products division which sells a variety of items including bricks, paving, masonry, roofing, precast and so on. The ASX share recently acquired some US brickmakers. That opens up a large new market, it diversifies its earnings and hopefully improve the efficiencies there.

    Obviously COVID-19 is going to have a short-term impact on the construction industry. But the best time to buy cyclical shares is when they’re in the tough part of the cycle.

    But there are two other divisions that make Brickworks a great, reliable investment for investors aged over 50. The first is an industrial property trust that it owns 50% stake of, along with partner Goodman Group (ASX: GMG). The property trust delivers defensive rent, which is good in times like this. Over the longer-term, rental income and the value of the trust should grow as two new high-tech distribution warehouses are completed and leased to Amazon and Coles Group Limited (ASX: COL).

    The other division is a large shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. This company itself is a great long-term investment as a conglomerate which is steadily growing its value and dividend for Brickworks. It is becoming more diversified as time goes on. Soul Patts recently made an investment into agriculture and plans to invest in regional data centres.

    Brickworks is a great ASX share for investors aged over 50 because it hasn’t cut its dividend for over 40 years. At the current Brickworks share price it’s trading with a grossed-up dividend yield of 5%.

    Share 2: Magellan Global Trust (ASX: MGG)

    This is a listed investment trust (LIT) which targets the highest-quality shares in the world. ‘High-quality’ means aspects like a strong balance sheet, great brand power, high profit margins and resilient business models.

    In this COVID-19 era, it’s tech shares in-particular that are proving robust because their services are delivered digitally. People can stay in their home and still use their Microsoft Office products, buy things online with their Mastercard or Visa card, watch YouTube or browse Facebook.

    Magellan Global Trust owns shares like Alibaba, Alphabet (Google), Atmos Energy, Microsoft, Tencent, Facebook, Visa, Mastercard, Reckitt Benckiser and Novartis. I think the ASX share is well suited to a retiree portfolio because it’s positioned for both defence and growth.

    In terms of income, it aims to pay a 4% distribution yield on its net asset value (NAV). Not a bad yield in the current environment. The trust currently has a high level of cash (18%) in the portfolio, so it can shelter shareholders against another market selloff if there is one later this year. That cash can then be used to snap up cheap opportunities.

    The ASX share can provide a good combination of income, income growth and capital growth for retirees.

    At the current Magellan Global Trust share price it’s trading at a 5% discount to the intraday indicative NAV.

    The trust recently announced that the distribution for December 2020 will be 3.58 cents per unit, an increase of 8.5% on the prior corresponding distribution.

    Foolish takeaway

    Both of these ASX shares offer defensive distribution, a good starting yield and good potential growth. At the current prices I think I’m drawn to Magellan Global Trust due to the relatively high Australian dollar, high quality holdings and the defensive cash position.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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.

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  • Germany’s long, lonely campaign: Battling Wirecard’s short sellers

    Germany’s long, lonely campaign: Battling Wirecard’s short sellersGerman authorities pressed on for four years investigating investors who bet against Wirecard AG’s shares, even after a UK regulator concluded that their evidence against the short sellers was “not sufficient,” according to documents and people familiar with the matter. With encouragement from Wirecard’s lawyers and despite red flags about the company, financial markets watchdog Bafin and Bavarian state prosecutors in Munich moved swiftly against short sellers after a February 2016 research report alleged fraud and money-laundering at Wirecard, according to confidential documents related to the probe.

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  • ‘It is foolish to think there’ will be a miracle cure for this pandemic: doctor

    ‘It is foolish to think there’ will be a miracle cure for this pandemic: doctorDr. Tom Tsai, an Assistant Professor in Department of Health Policy and Management at Harvard Global Health Institute, joins The Final Round to break down his thoughts on coronavirus, vaccines, and reopenings across the United States.

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  • TSMC Posts Biggest Profit Beat in Six Years

    TSMC Posts Biggest Profit Beat in Six Years(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s quarterly profit exceeded analyst estimates by the widest margin in six years, underscoring how its technological lead is helping the chipmaker weather the pandemic as well as U.S. curbs on No. 2 customer Huawei Technologies Co.Apple Inc.’s main iPhone chipmaker reported net income of NT$120.8 billion ($4.1 billion) on Thursday, beating the NT$110.6 billion analysts expected on average. That’s the biggest profit beat since the three months ended March 2014. TSMC also reported gross margin of 53%, exceeding its previous guidance of 50%-52%, according to today’s release.TSMC, a critically important link in the global supply chain, had previously lowered its 2020 revenue outlook to reflect potentially the biggest economic crisis since the Great Depression. But it said at the time it still expects robust demand for semiconductors in datacenters hosting a surge in online activity during the pandemic. The company has maintained its goal of $15 billion to $16 billion of capital spending in 2020, up from the previous year’s $14.9 billion.What Bloomberg Intelligence SaysSales of Asian contract chipmakers TSMC, SMIC and others may beat consensus in 2H despite the longer-than-expected Covid-19 pandemic, due to rising semiconductor demand for cloud processing and video conferencing amid social-distancing requirements.\- Charles Shum, analystClick here for the research.Shares of the chipmaker fell 1.5% at the close of trading in Taipei, after having surged to a record earlier this week. They are still up about 44% from the March lows amid signs of recovery in demand for the company’s chips.Its revenue of roughly NT$311 billion, which emerged on Friday when it reported its most recent sales, was already known to have surpassed consensus.In the longer term, Taiwan’s most valuable company will still have to contend with uncertainty as the coronavirus continues to spread across the globe, particularly as signs emerge of a second wave. TSMC, however, is considered somewhat more resistant to a downturn thanks to its commanding position in the production of high-end chips needed for everything from datacenters and gaming to video streaming.It’s also the primary producer of cutting-edge chips for Huawei, though the Trump administration’s ban on the use of American chipmaking gear for the Chinese company threatens a business relationship that accounts for about 14% of TSMC revenue. Chairman Mark Liu told shareholders in June that the Taiwanese chipmaker is confident that other customers can replace any business lost because of tightening U.S. curbs on China’s largest tech company.“The June and 2Q20 sales number also supports our view that near-term momentum will remain healthy, which likely will persist into 3Q20 as well,” Sanford C. Bernstein analysts wrote in a note dated July 10. “Despite the ban on Huawei, we believe the long-term growth drivers such as 5G & share gain in high-performance compute (HPC) applications remain unchanged.”(Adds gross margin in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • How to pick an ASX 200 share market bubble

    Investor pricking share market bubble

    ‘Bubble’ is one of those terms that’s probably thrown around a little more than it should be. After all, I’m sure there were many people saying that Aferpay Ltd (ASX: APT) shares were in a ‘bubble’ when they nearly hit $20 back in August 2018. I’m sure those same commentators would sell an arm and possibly a leg for a time machine today.

    But consider this. The S&P/ASX 200 Index (ASX: XJO) has recovered more than 30% since its March lows. The US-based Dow Jones Industrial Average is up nearly 45% over the same period. And the Nasdaq Index made a new all-time high just last week. All in the face of the worst global recession in living memory.

    I think we need to talk about bubbles.

    What is a ‘bubble’?

    A bubble is normally defined as an exuberant, temporary and unsustainable dislocation of the price of an asset or asset class from its value. By this definition, a bubble is generally only obvious in hindsight.

    The most recent example (in my view) of a real bubble is the ‘bitcoin mania’ we saw in the bitcoin and cryptocurrency markets back in 2017. A defining characteristic of a bubble is the ‘taxi driver effect’. This refers to an asset that climbs in valuation so substantially that it attracts for and more investors in a snowball-esque manner. Eventually, this effect grows so potent that ‘even your taxi driver is talking about it’ (I’m not disparaging the investing acumen of taxi drivers, by the way, that’s just how the adage goes). So if your taxi, Uber or bus driver is telling everyone about how Zip Co Ltd (ASX: Z1P) is going to the moon, I would start to get worried!

    Before bitcoin mania, other famous examples of a bubble include the dot.com crash of the early 2000s and the real estate bubble in the United States that sparked the global financial crisis. The earliest appearance of a bubble is usually attributed to the ‘tulip mania’ phenomenon that was seen in the Netherlands back in the 1600s, during which the prices for tulip bulbs (which had been recently introduced and were considered highly fashionable) reached extraordinary levels and then dramatically collapsed.

    Are ASX shares in a bubble today?

    Whilst I don’t believe the entire ASX 200 is in a bubble right now, we have been witnessing some dangerous signs of late. Firstly, I don’t think it’s a good sign that the US markets, in particular, are near or exceeding all-time highs. Make no mistake, the coronavirus pandemic is wreaking massive economic damage across the global economy. To have any market reach new all-time highs in the middle of this tragic event doesn’t gel with reality, in my opinion.

    Back over on the ASX, I don’t think things look quite as dislocated. But a caveat: when companies in a single sector – ASX payments for instance – give investors 3-digit returns over a few months almost across the board, I’m seeing an orange flag waving high.

    Foolish takeaway

    I don’t think ASX 200 shares are in a bubble right now. But I’m still extremely cautious over what we’re seeing across the world in equity markets today. As such, I’ll be investing with extreme caution for the remainder of 2020, with as much cash on hand as possible. I’m not selling out of my shares mind you, but I don’t think we’re as close to being out of the woods as the markets seem to be hoping for.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    Sebastian Bowen owns shares of Uber Technologies. 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 Uber Technologies. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Forget property! I’d buy these ASX dividend shares instead

    Property or shares

    Why ASX dividend shares over property? I understand property has typically been Australians’ favourite way to invest. The great Australian dream is a quarter-acre block to call your own, after all.

    But property prices are still relatively high, despite the coronavirus pandemic. And the future for the housing market is more uncertain than I’d like. So I think a better bet for cashflow is these 3 ASX dividend shares.

    Woolworths Group Ltd (ASX: WOW)

    Woolworths needs no introduction as Australia’s largest supermarket chain. The company also owns a network of pubs/hotels, the BWS and Dan Murphy’s liquor stores, as well as the Big W department store chain.

    Woolworths’ dividend might not sound too enticing at its current trailing yield of 2.66%. But I think this is one of the safest dividends on the ASX due to the ‘consumer staples’ nature of the Woolworths business, and thus is worthy of inclusion in a dividend-focused portfolio. I’m also excited about the company’s plans to spin-off its liquor and hotel assets into a separate entity down the road.

    BWP Trust (ASX: BWP)

    BWP is a real estate investment trust (REIT), which means it primarily owns land and property assets. The benefits of owning a good-quality REIT like BWP compared to an investment property are numerous in my opinion. No stamp duty taxes and no ongoing maintenance hassles for shareholders are a good start.

    BWP’s tenants aren’t likely to give you too much hassle either, considering the largest is Wesfarmers Ltd (ASX: WES)’s Bunnings Warehouse. And finally, I would consider any investment property that gives off a net 4% yield these days to be a top investment. Yet that’s what BWP’s trailing distribution yield is offering on current prices. As such, I think it is more than worthy as an alternative to an investment property.

    Telstra Corporation Ltd (ASX: TLS)

    Our last dividend pick is this telco giant. The Telstra share price is not as attractive today (at $3.48 at the time of writing) than a few weeks ago when it was asking around $3.10. But I still think Telstra is a solid pick for dividend income at these prices.

    Telstra has paid out 16 cents per share in dividends over the past 12 months (including the 6 cents of special nbn dividends). That gives Telstra a trailing yield of 4.64%, which isn’t a bad offering, especially considering the payouts come with full franking.

    I also think Telstra is a highly defensive company, considering the lengths it would take for most people to part with their phones or their internet connection. As such, I think it’s a robust holding to have in a dividend portfolio, and a great alternative to an investment property today.

    Foolish takeaway

    I’ve got nothing against property and property investors. But it’s my opinion that a portfolio of strong ASX dividend shares can offer more certainty and net yield than many houses currently on the market, and the above 3 shares are a great place to start!

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

    More reading

    Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths 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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  • Catapult share price edges higher on former Amazon executive appointment

    soccer player kicking ball in stadium

    The Catapult Group International Ltd (ASX: CAT) share price has edged 3.1% higher following the company’s announcement it has appointed a former Amazon executive as Chief Operating Officer (COO).

    New COO

    In this morning’s ASX release, Catapult announced the appointment of Chris Cooper to the role of COO to further enhance the company’s scale and meaningfully drive its strategic growth. 

    Additionally, the new COO has global leadership experience driving expansion into international markets, tailoring business models to local cultural practices, and delivering results through volatile business cycles.

    Catapult CEO, Will Lopes, said “Chris brings to Catapult a wealth of operational expertise, as well as decades of experience leading international organisations across the globe…”

    Chris Cooper’s recent role was Executive Vice President of International Operations and New Business Expansion at Audible, an Amazon subsidiary. Mr Cooper commented: “…Catapult’s distinctive position to take sport analytics to the next level and continue to set the bar on how elite teams and athletes around the world make data-driven decisions using the latest performance technology is what drew me to this opportunity.”

    The appointment comes following the company’s lifting of cost-cutting measures from its coronavirus mitigation plan, as announced on 13 July 2020. Will Lopes said “entering the COVID-19 crisis we took preventative measures anticipating a worst-case scenario impact to our global business. I am glad such impact was less than anticipated and we are able to remove such measures earlier than expected.”

    H1 FY20 results presentation

    In its results presentation in February this year, Catapult announced annual recurring revenue was up 20% compared to the same period last year. Additionally, earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $5.7 million which was up from a loss of $1.4 million. Free cash flow significantly increased to $13.6 million.

    The Americas continues to be the growth driver for Catapult with teams there making up 45% of total teams and 70% of revenue by region.

    About the Catapult share price

    First listing on the ASX in 2014, Catapult Group has grown into a worldwide leader in sports technology. The company’s technology provides analytical data to sporting organisations around the world to help them assess athlete performance. 

    In Australia, the group provides data about players to organisations such as the Australian Football League (AFL) and National Rugby League (NRL). Other sports it works with include American football, baseball, basketball, cricket, soccer, ice hockey and rugby. 

    At time of writing, the Catapult share price is trading at $1.31 and has rallied 27.18% in the past year. 

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    Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International 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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