The Coles Group Ltd (ASX: COL) share price has been a strong outperformer in 2020. While the S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year, Coles shares have climbed 3.91% higher.

But if you’re a long-term investor, you’re probably not too worried about the here and now. So, where will the Coles share price be in 1 year?

Where is the Coles share price headed?

It’s clear that the coronavirus pandemic has boosted supermarket sales this year. Even once the panic buying subsided, supermarkets have been busy with Aussies forced to stay home more.

But it’s harder to forecast sales over the next 12 months. I think it looks like we’re headed for a recession in Australia. Now, technically a recession is not necessarily a disaster but it still has the potential to impact the Coles share price.

A recession is simply 2 consecutive quarters of negative GDP growth. In fact, they’re quite common. But I think a 2020 recession will be tough with so many job losses across a number of sectors.

People tend to spend less in times of uncertainty. While the Coles share price benefits from non-cyclical earnings, even supermarkets get hit by Aussies tightening their spending.

That means that we could see lower earnings over the next 12 months. However, I think Coles will continue to be a strong defensive share.

I don’t think we’ll see spectacular Coles share price growth. But if the ASX 200 moves sideways or down over the next year or so, Coles could still outperform.

I like that Coles provides more concentrated exposure than Woolworths Group Ltd (ASX: WOW) following the former’s November 2018 demerger from Wesfarmers Ltd (ASX: WES).

Foolish takeaway

No one knows where the Coles share price is headed in the next 12 months. In my opinion, it will be trading at or near its current $15.42 valuation.

However, it’s important to consider your time horizon. If you’re investing for the next 30 years, what happens this year or next isn’t a huge concern.

More reading

• Tax planning for ASX 200 investors
• 3 exciting ASX growth shares to buy in June
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, 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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It’s nearly June so S&P/ASX 200 Index (ASX: XJO) investors should start considering their tax affairs for FY20. Investors should pay particular attention to anything that reduces the returns they’ve earned for the year. This includes transaction fees, advisor costs, expense ratios and taxes.

Here are a few things you can do to manage your ASX 200 portfolio, prepare for tax time and ensure you only pay the tax you are required to pay.

Rebalance your ASX 200 portfolio allocations

The financial year end provides a great opportunity for you to review your portfolio and investment strategy. This can be particularly relevant for growth investors, or investors who are not contributing more capital to their investment portfolio. 

Growth investors will often have an oversized portion of their portfolio concentrated in a few shares that have done particularly well. Each individual investor will have their own comfort level when it comes to concentration of risk. I was in this position with Altium Limited (ASX: ALU) and The Trade Desk Inc (NASDAQ: TTD) last year. This was because they had both grown much faster than the rest of my portfolio. Personally, I prefer to let my winners run and am continuing to add funds to my investment portfolio. Therefore, these winners are a part of my portfolio I’m comfortable with.         

Pay the piper, later   

Your individual circumstances, including whether your shares are in a gain or loss position, will dictate the best time or times to rebalance your portfolio. For example, if you already have a capital gain in FY20, selling shares at a loss before 30 June will mean you can reduce your gain. If the shares you want to sell down as part of the rebalance are in a gain position, waiting until 1 July could provide you an additional year before the tax is due. This is because the gain will be included in your FY21 tax return.

Organise your shoebox

Whether you give your accountant a shoebox or send them a link to a cloud drive, getting your documents in order prior to year end will give you a better idea of your tax position. This means you can also better plan your cash flows and invest accordingly. 

A further benefit is that if you have all of your Cochlear Limited (ASX: COH) retail entitlement documentation or Telstra Corporation Ltd (ASX: TLS) dividend reinvestment plan purchases organised, your accountant should be able to work more efficiently and you might save on their fees.

Foolish takeaway

Tax shouldn’t be what drives your investment decisions, but it should be a consideration. ASX investors should target outperforming the ASX 200 index’s return, after fees and taxes. Furthermore, legally lowering your average lifetime tax rate can significantly increase your annualised growth rate and wealth over time.

More reading

• Where will the Coles share price be in 1 year?
• Is the BHP share price a buy?
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares that are absurdly cheap right now
• Why ASX 200 travel shares are soaring higher today

Lloyd Prout owns shares in Altium Limited and The Trade Desk Inc and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends The Trade Desk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and The Trade Desk. 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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I think there are some great ASX dividend shares. You may want to find different sources of income from the typical dividend shares people go for.

This doesn’t mean shares like Australia and New Zealand Banking Group (ASX: ANZ) or Sydney Airport Holdings Pty Ltd (ASX: SYD). Who knows if they will even pay something during 2020 because of the coronavirus?

I think the below ASX dividend shares could be great, diversified options for income:

Duxton Water Ltd (ASX: D2O)

Duxton Water is a company that owns water entitlements. It then leases them out to agricultural businesses. It has a portfolio of water from different entitlement regions, it’s trying to progressively lease out more of them.

This increased earnings visibility has allowed management to forecast that the Duxton Water dividend can grow every six months for the next two years. After that it may depend on how much rain there has been (or not).

The company is currently trading at a sizeable discount to its net tangible assets (NTA). The forward grossed-up dividend yield amounts to 6.25%.

Brickworks Limited (ASX: BKW)

Brickworks is one of the best ASX dividend shares in my opinion. It hasn’t decreased its dividend for more than four decades.

The business is split into three key segments.

The first segment is its large shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which owns a diversified and growing portfolio of businesses in different industries. Soul Patts continues to grow its dividend for all shareholders, including Brickworks.

The second segment is its 50% stake of an industrial property trust, the co-partner is Goodman Group (ASX: GMG). This trust is generating reliable cashflow, long-term capital growth and there are more projects which will be completed in the coming years.

The third segment is the diversified building products businesses in Australia and the US. Construction is going to have a tough time this year, but I think there’s a good turnaround story here.

What’s the yield for the ASX dividend share? It currently offers a grossed-up yield of 5.8%.

BetaShares FTSE 100 ETF (ASX: F100)

There are plenty of shares listed on the London Stock Exchange which offer defensive earnings and a good yield. I’m thinking about shares like Tesco, GlaxoSmithKline, Unilever, BHP, Rio Tinto, National Grid and Vodafone.

The UK share market has been hit just like every other share market. This has boosted the dividend yield for ASX investors. At the end of April 2020 it had an underlying trailing dividend yield of 5.86%. The yield has fallen with the rising share prices, but the yield will still be fairly attractive for the long term even if there are a few dividend reductions this year.

It could be a good idea to get international income diversification. 

Which ASX dividend share to buy today?

Each of these ASX dividend shares have attractive futures with solid starting yields. At the current prices I’d probably go for Brickworks, it’s trading at a big discount to its asset value, has a great dividend record and it could be a good contrarian pick with the worries about the construction industry.

More reading

• 2 ASX shares that are absurdly cheap right now
• ASX 200 rallies hard, no longer in bear territory
• Why this small-cap ASX pharmaceutical share rocketed 27% higher today
• Latest spending data could drive the ASX retail sector higher
• Why ANZ, CBA, NAB, and Westpac shares are storming higher today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended DUXTON 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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A new month is just around the corner, so what better time to take a look at your portfolio and see if there are any additions that could take it to the next level.

To help you on your way, I’ve picked out three exciting growth shares that I believe are well-placed to be market beaters over the coming years.

Here’s why I think it is worth looking at adding them to your portfolio:

Bubs Australia Ltd (ASX: BUB)

Bubs is a growing infant formula and baby food company which could be destined for big things. It has been growing at a strong rate over the last few years and looks well-placed to continue this trend in the coming years. Especially given increasing demand in China and its supply agreements with Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) supermarkets. 

IDP Education Ltd (ASX: IEL)

IDP Education is a provider of international student placement services and English language testing services. It has been growing at an explosive rate over the last few years and was doing so in FY 2020 until the pandemic grounded its business to a halt. In the first half of the year IDP Education delivered a 49% increase in earnings before interest and tax to $86.9 million. While the second half will be much weaker and the first half of FY 2021 could be equally subdued, I believe it will bounce back very strongly once the crisis passes and international borders reopen again. After which, I believe it has the potential to grow very strongly over the next decade.

Pushpay Holdings Group Ltd (ASX: PPH)

The Pushpay share price has been on fire over the last 12 months, but I wouldn’t let that put you off investing. I believe the donor management platform provider has the potential to grow materially over the next 10 years. Especially with management targeting a 50% share of the medium to large church market. This represents a US$1 billion per year revenue opportunity, which is many multiples more than the US$127.5 million revenue it delivered in FY 2020.

More reading

• Where will the Coles share price be in 1 year?
• How much should you pay for earnings reliability from shares?
• 3 quality ASX 200 blue chip shares to buy right now
• Why Fortescue, Freedom Foods, Pushpay, & QBE shares are dropping lower
• Where to invest $10,000 into ASX shares immediately

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 BUBS AUST FPO and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended BUBS AUST 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 BHP Group Ltd (ASX: BHP) share price is down 8.79% year to date but continues to climb higher since its March lows.

BHP shares fell as low as $24.05 on 13 March in the midst of the bear market. However, the company’s share price is back up to $35.50 and is now outperforming the S&P/ASX 200 Index (ASX: XJO) in 2020.

So, is this just a flash in the pan or is the BHP share price back in the buy zone this year?

Why the BHP share price could be a buy

BHP is a diversified miner with strong operations across iron ore, copper, aluminium and diamonds. This means there are a lot of potential earnings streams to help weather the current downturn.

I think we’ll continue to see strong demand for iron ore in 2020. The coronavirus pandemic has sparked what looks to be a global recession with governments across the globe trying to stabilise their economies.

One of the easiest ways to do this is through infrastructure spending. I think we could see governments like China and Australia turn to infrastructure to boost employment and economic output.

That’s good news for the BHP share price and the company’s shareholders. Iron ore is a basic material used for steel production and any infrastructure projects could help support global demand.

What are the downside risks?

Despite some strong tailwinds, there are risks to buying the BHP share price at $35.50.

Geopolitical tensions remain high in 2020. That means we could see further trade wars either between the USA and China or China and Australia.

That’s bad news for major exporters like BHP. The other risk factor is just the uncertainty. No one really knows what the future holds in the coming months, let alone years.

Given the current economic climate, I think it’s quite likely we will continue to see sharp BHP share price movements for at least the next few months. If you’ve got what it takes to ride out this short-term volatility, BHP could still represent solid, long-term buying at current prices.

More reading

• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares that are absurdly cheap right now
• Why ASX 200 travel shares are soaring higher today

Motley Fool contributor Ken Hall 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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Next week the Reserve Bank of Australia will be deciding on the cash rate once again.

According to the latest cash rate futures, at present the market is pricing in a 47% probability of a rate cut at this meeting.

While I’m not convinced rates will go lower from here, I am convinced that they will stay at ultra-low levels for a number of years to come.

In light of this, I continue to see the share market as the best place for investors to turn to for income.

But which shares should you buy? These three top ASX dividends shares are high on my list:

Commonwealth Bank of Australia (ASX: CBA)

If you don’t already have exposure to the big four banks, then I think it would be worth considering Commonwealth Bank. While trading conditions are tough for the banks, I’m optimistic that the worst is largely behind them now. This could make it an opportune time to make a patient investment in Commonwealth Bank’s shares. I expect the bank to cut its dividend to ~$3.70 per share in FY 2021, which implies a forward fully franked 6% yield.

Rio Tinto Limited (ASX: RIO)

I think Rio Tinto could be worth considering. Especially with iron ore prices trading at lofty levels and some tipping prices to go even higher. This should lead to Rio Tinto delivering strong profits for at least the next couple of years. And given the strength of its balance sheet, I expect the majority of its free cash flow to be returned to investors. Last week Morgans suggested that Rio Tinto’s shares offer a fully franked ~9% FY 2021 dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. It is the conglomerates behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. It also owns a number of businesses in the chemicals and industrials industries. And while its shares may not offer the biggest yield, I believe its businesses leave it well-placed to grow its dividend at a solid rate over the next decade. At present I estimate that its shares offer a forward fully franked ~3.7% dividend yield.

More reading

• ASX 200 rallies hard, no longer in bear territory
• Latest spending data could drive the ASX retail sector higher
• Why ANZ, CBA, NAB, and Westpac shares are storming higher today
• 3 top ASX dividend shares to buy in June
• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its sensational form and stormed a further 2.9% higher to 5,780 points.

Will the market be able build on this on Wednesday? Here are five things to watch:

ASX 200 expected to tumble.

The ASX 200 index looks set to give back some of yesterday’s gains on Wednesday. According to the latest SPI futures, the index is expected to open the day 63 points or 1.1% lower this morning. This follows a positive but not spectacular start to the week on Wall Street overnight following Monday’s public holiday. The Dow Jones rose 2.2%, the S&P 500 climbed 1.2%, and the Nasdaq edged 0.2% higher.

Oil prices climb higher.

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped higher. According to Bloomberg, the WTI crude oil price has pushed 3% higher to US$34.24 a barrel and the Brent crude oil price is up 1.9% to US$36.20 a barrel. Traders appear optimistic that major producers are following through on their supply cut promises.

Gold price sinks lower.

It could be a difficult day for gold miners including Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) after the gold price sank lower overnight. According to CNBC, the spot gold price fell 1.9% to US$1,703.00 an ounce. This was driven by investors switching out of safe haven assets and back into risk assets.

ALS full year update.

The ALS Ltd (ASX: ALQ) share price will be on watch today when the testing services company releases its full year update. Last week analysts at Credit Suisse upgraded its shares to an outperform rating with an $8.00 price target. They appear confident that ALS will deliver a decent result this morning.

Coca-Cola Amatil upgraded.

The Coca-Cola Amatil Ltd (ASX: CCL) share price will be on watch today after analysts at Goldman Sachs upgraded the beverage company’s shares to a neutral rating with a price target of $9.50. This follows the release of a trading update at its annual general meeting on Tuesday. The broker made the move on valuation grounds after a sharp pullback in its share price over the last 12 months.

More reading

• 2 ASX shares that are absurdly cheap right now
• Why ASX 200 travel shares are soaring higher today
• ASX 200 rallies hard, no longer in bear territory
• Latest spending data could drive the ASX retail sector higher
• The latest ASX shares that brokers have just upgraded to “buy”

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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