If you are looking for two quality S&P/ASX 200 Index (ASX: XJO) shares to buy this month, my pick would be ResMed Inc (ASX: RMD) and  Transurban Group (ASX: TCL).

Here’s why both of these shares are in my buy zone right now:

Global leaders

ASX 200 share ResMed may not be as well-known as other leading Australian healthcare shares such as CSL Limited (ASX: CSL).

However, ResMed has evolved over the past 30 years to be a global leader in its healthcare niche and is now one of the world’s top sleep treatment companies.

The company manufactures devices and cloud-based software solutions for the treatment of sleep apnoea and other chronic respiratory illnesses.

ResMed’s strong revenue growth story continues. ResMed achieved an impressive 47% increase in net income during the third quarter of FY 2020. This strong revenue growth is reflected in ResMed’s recent share price growth. Despite the challenges of the coronavirus pandemic, the ResMed share price has risen from $21.90 at the beginning of this year, to now be trading at $28.79. That’s more than a 30% increase.

I believe that ResMed is well-positioned to grow over the next decade, as it further expands its global reach. The international market for sleep apnea remains largely untapped.

Strong futures

Transurban is the largest toll road operator in Australia, and has an expanding overseas presence. This ASX 200 share now has a market capitalisation of $38 billion. In Australia, Transurban has a virtual monopoly on the toll road systems in both Sydney and Melbourne.

The Transurban share price took a hit during the early phase of the coronavirus pandemic from late February to mid-March. Since then its share price has made only a partial recovery.

The Transurban share price is currently  trading at $14.01, compared to $16.34 in late February. I believe this offers astute investors with a long investment horizon a good buying opportunity. Revenues are no doubt likely to be further impacted in the short-term, especially in Melbourne, where stage 4 restrictions have just been introduced. However, traffic levels will eventually return to normal as the crisis eventually eases.

I believe that Transurban is well-placed to tap into growing revenues from growing populations in both its local and overseas operation over the next decade.

Foolish Takeaway

ResMed and Transurban are both high quality ASX 200 shares that I believe could make good additions to your ASX share portfolio this month. Both have strong market positions and an expanding overseas presence.

More reading

• This is the only ASX sector tipped to report earnings growth this reporting season
• Why I would buy NEXTDC and these stellar ASX growth shares
• Is the Transurban share price a buy right now?
• 7 ASX shares to watch this reporting season
• I would buy ResMed and these ASX blue chip shares in August

Motley Fool contributor Phil Harpur owns shares of ResMed Inc. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Wednesday after the release of an announcement.

What did Telstra announce?

This morning Telstra announced that it has entered into an agreement to sell its data centre complex in Clayton, Victoria, to Centuria Industrial REIT (ASX: CIP) for a total of $416.7 million.

The 3.2 hectare complex is 25km from the Melbourne CBD and incorporates 10 buildings. This includes the telco giant’s newest 6.1MW data centre and its adjacent 6.6MW data centre and associated energy centre.

According to the release, the sale includes a triple-net lease-back arrangement. This means Telstra will retain ownership of all IT and telecommunications equipment, as well as ongoing operations and responsibility for building upgrades and repairs, future capex requirements, and security.

The lease is for an initial period of 30 years, with two 10-year options for Telstra to extend the lease. Importantly, the sale has no impact for Telstra customers.

T22 strategy progressing well.

Telstra’s CEO, Andrew Penn, notes that the sale is part of the company’s T22 strategy which is cutting costs and simplifying its business.

He commented: “As part of T22, we have an ambition to monetise up to $2 billion worth of assets to strengthen our balance sheet. This deal means we have now reached over $1.5 billion. Data centres are an incredibly important part of the digital ecosystem and we continue to own and operate world-leading facilities in Australia and overseas.”

The company advised that transaction is expected to be completed by the end of August and will generate $416.7 million in proceeds.

However, due to the long tenure of the lease-back, the transaction will not be treated as a sale under accounting standards. As a result, no accounting gain will arise from the transaction.

The acquirer, Centuria Industrial REIT, has placed its shares in a trading halt this morning while it raises funds to complete the transaction.

More reading

• 3 high quality blue chip ASX 200 shares to buy
• Earnings season: What to expect from the CSL FY 2020 result
• Earnings season: What to expect from Telstra in FY 2020
• Will outages make the Telstra share price a buy?
• Buy these ASX dividend shares before the RBA meeting

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

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Coronavirus restrictions are tightening and, as a result, I’m watching ASX retail shares.

I think non-discretionary retailers like Coles Group Ltd (ASX: COL) could benefit from tightening restrictions across the company.

However, there are some question marks around those with discretionary products.

Here’s what I think might lay ahead for ASX retail shares in the coming months.

Which ASX retail shares to watch this month

Clearly, the August earnings season will be a big factor for ASX retail share prices.

It’s been a strong year so far for the likes of JB Hi-Fi Limited (ASX: JBH). The JB Hi-Fi share price is up 15.5% in 2020 while the S&P/ASX 200 Index (ASX: XJO) has fallen 9.8% lower.

Given its heavy reliance on electronics, I think JB Hi-Fi is one of those non-discretionary shares to watch.

The retailer is set to release its FY20 results on 17 August. I think the numbers will be strong, but investors may be worried about the impact of restrictions weighing down sales.

I can see a couple of headwinds for the ASX retail share in 2020. One is that government stimulus money is starting to slow which could impact discretionary spending.

The other is that many Aussies already loaded up on their electronics in March. That means recurring customer revenue may be lower in the year ahead.

It’s not just JB Hi-Fi I’m watching this month. An article in Monday’s Australian Financial Review (AFR) also got me thinking about other ASX retail shares.

Many stores owned by JB Hi-Fi, Super Retail Group Ltd (ASX: SUL) and Wesfarmers Ltd (ASX: WES) all stayed open during the first lockdown in March.

However, that’s set to change which could mean a different impact this time around. A strong online presence may help some stores weather the impact but nothing is certain.

If Aussies are willing to bunker down, some of these top ASX retail shares could see an earnings slump. That won’t, however, be reflected in their FY20 results, which means we will have to wait for more trading updates.

Foolish takeaway

There’s no doubt that the coming weeks will be challenging for Victorian and Australian businesses.

I think the safe play here is to stick to non-discretionary ASX retail shares. Supermarket sales should be more resilient than most in the coming months.

That means a supermarket retailer like Coles or Metcash Limited (ASX: MTS) may be worth a look.

More reading

• Leading fundie says the ASX gold share boom is just beginning
• Reporting season metrics to watch for JB Hi-Fi
• 3 ASX shares with generous dividend yields to buy today
• This is the only ASX sector tipped to report earnings growth this reporting season
• Should you buy ASX gold shares or FAANG stocks in August?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and 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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2020 has been a good year for investors in ASX gold shares.

The Saracen Mineral Holdings Limited (ASX: SAR) share price has rocketed 83.1% higher this year. Similarly, shares in St Barbara Ltd (ASX: SBM) and Northern Star Resources Ltd (ASX: NST) are 26.0% and 39.8% higher, respectively.

That’s largely been driven by gold prices rocketing to new record highs in 2020. Market volatility and economic uncertainty have created a surge in demand for the precious metal.

Many investors would think this means the buying opportunity and bull market are over. However, one leading fund manager says it’s just beginning.

Why one leading fundie sees an ASX gold share boom

That fundie is Paragon Funds Management Chief Investment Officer, John Deniz.

In a market update yesterday, Mr Deniz pointed to 6 key factors supporting a further ASX gold share boom. These were:

1. Low US 10-year bond yields
2. Low US real rates
3. A ballooning US budget deficit
4. Strong US fiscal and monetary stimulus
5. Deep global liquidity and money supply
6. A weakening US dollar

Mr Deniz says that all of these signs point to a further increase in demand for gold. For context, gold is often seen as a ‘safe haven’ asset with good inflation hedging properties.

But rather than stick to the qualitative factors, Mr Deniz backed up the ASX gold share bull case with some numbers.

In particular, he highlighted some of the biggest gold bull cycles in recent years. Notably, the most significant one occurred when US real interest rates went negative and gold exchange-traded funds (ETFs) saw strong inflows (shown in dark blue below).

How should I position my portfolio?

Before you go all-in on ASX gold shares, it’s important to take a step back. While this paints a convincing picture, there’s no such thing as a free lunch in investing.

There is still the risk that we’ll see a strong economic bounce back in 2020. That could ease the demand for gold and mean the S&P/ASX 200 Index (ASX: XJO) surges higher.

Given the strong gains in ASX gold shares already this year, much of this growth may also have already been priced in.

More reading

• Coronavirus: What does lockdown mean for ASX retail shares like JB Hi-Fi?
• 5 things to watch on the ASX 200 on Wednesday
• This is the only ASX sector tipped to report earnings growth this reporting season
• Should you buy ASX gold shares or FAANG stocks in August?
• 3 high quality blue chip ASX 200 shares to buy

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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Investors expect JB Hi-Fi Limited (ASX: JBH) to deliver strong results this reporting season. In fact, in the company’s most recent guidance on 11 June, it estimated FY20 revenue of $7.86 billion. This is an 8.4% increase on the initial FY20 revenue forecast. Clearly this is an an outstanding result if accurate.

The company attributes much of the increase to the work-from-home period necessitated by coronavirus lockdowns during which consumers flocked to create home offices and purchase home furnishings. Moreover, in the company’s Q3 update, it also mentioned increased volumes through online sales and the introduction of contactless delivery. However, no quantified figures have yet been provided.

While it may be a bit much to say there are dark clouds on the horizon, there are definitely a few metrics worth watching to see if the company’s performance is sustainable.

Issues impacting reporting season

Notably, JB Hi-Fi’s New Zealand stores reported a 19.3% reduction in sales for 2H20. The company was at pains to point out the small revenue contribution of the NZ operations, and rightly so. However, the NZ lockdown for JB Hi-Fi was from 28 April until 14 May. A period of about 2 – 3 weeks impacting 14 stores. The Victorian closure is for 46 JB HI-FI stores and 21 The Good Guys stores for a full 6 weeks, at least.

Any guidance the company provides on 17 August, its nominated reporting date, will need to balance this against other factors likely to impact sales and net profits.

Online sales

The absolute impact of the 6 week lockdown in Victoria may be tempered by a large-scale increase in online sales. FY19 saw growth of Australian online sales by 23% to reach 5.5% of total sales. We know that the move to online shopping has been accelerated by the coronavirus pandemic. In fact, Australia Post data shows that eCommerce growth rose by 80% in the 8 weeks following the World Health Organization’s (WHO) initial announcement regarding the pandemic. Australia Post believes that this year, online sales will reach 15% of all retail sales. That is 3–5 years ahead of previous forecasts.

JB Hi-Fi doesn’t provide a revenue breakdown per state within Australia. Nevertheless, it is safe to assume the 6 week lockdown will have a large impact. A figure currently floating around quotes Victoria as contributing just under 25% of Australia’s GDP. Using that broad brush, if JB Hi-Fi is to counteract the impact of the Victorian closures, then online sales will have to at least double.

JB Hi-Fi does not report on active users or engagement statistics like pure online companies such as Kogan.com Ltd (ASX: KGN). So we are left only with the growth in online sales. In addition, look for any phrasing that may imply repeatability. If the online sales boost is purely due to the work-from-home phenomenon, then that will have a shelf life. There are only so many desks and filing cabinets a person needs.

Financial statistics

While JB Hi-Fi’s total net profit will rise with revenues, the net profit margin declared in reporting season will say a lot about future sustainability.

I am expecting the company to see an increase in its cost of doing business, or CODB. In FY19, this increased by 0.03% due to the sale of lower margin products. For example, when the company sells a lot of software, the cost of doing business is less due to the high margins. I am expecting most products sold to have relatively lower margins this FY. These include white goods from The Good Guys and laptops and accessories from JB Hi-Fi.

Lastly, I will be looking to see if there will be a lingering impact from a lower depreciation percentage on the net profits after tax (NPAT). The company saw a 23.5% reduction in depreciation after a significant pre-acquisition IT investment became fully amortised.

Foolish takeaway

The factors above may show a squeezing effect on FY21 earnings during this reporting season for JB. First, forced closure of 22.9% of Australian stores across both brands for 6 weeks. Moreover, this doesn’t include stores already closed in low traffic areas like airports. Second, a likely increase in CODB due to higher percentage of lower margin sales, and increased cleaning. Third, the potential impact of ongoing reductions in depreciation.

The ability for JB Hi-Fi to lessen this blow will predominantly come from the the growth of Australian online sales. In addition, investors should look for any indications as to the repeatability of that performance, or whether this was a one-off event. This information, as well as the above metrics, is likely to weigh on the JB Hi-Fi share price in the months following reporting season.

Lastly, the company saw a growth in its dividend per share by 7% in FY19. I will be very interested to see what happens with the dividend this year given the uncertainty in the national economy.

More reading

• This is the only ASX sector tipped to report earnings growth this reporting season
• ASX 200 jumps 2% higher, Afterpay soars
• How will Victoria’s stage 4 lockdowns impact ASX shares?
• Why Crown, Fortescue, Kogan, & Nearmap shares are storming higher
• Why the JB Hi-Fi share price is dropping lower today

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you don’t have the funds required to invest across a large number of different shares in order to maintain a diverse portfolio, then exchange traded funds (ETFs) could be the answer.

This is because ETFs give investors the option to invest in anything from tens to thousands of companies through just a single investment. This includes investing in themes, indices, countries, and industries.

While there are countless ETFs to choose from, two which I would buy are listed below. Here’s why I think they are among the best on offer:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

One of my favourites ETFs is the BetaShares Asia Technology Tigers ETF. Given how quickly the Asian economy is expected to grow over the next decade, having exposure to this side of the world seems like a particularly good idea to me. And what better group of shares to invest in than the 50 largest technology and ecommerce companies that have their main area of business in the region. These companies are among the fastest-growing in the region and look exceptionally well-positioned to be market-beaters over the next decade. Among its biggest holdings you’ll find the likes of ecommerce giant Alibaba, search engine Baidu, online retailer JD.com, and WeChat owner Tencent.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another of my favourite ETFs is the BetaShares NASDAQ 100 ETF. This fund gives investors exposure to the 100 largest non-financial businesses on Wall Street’s technology-focused NASDAQ index. This means that through a single investment, investors will be getting exposure to some of the biggest and well-known companies in the world. This includes the likes of Amazon, Alphabet, Apple, Facebook, Microsoft, and Netflix, Tesla, and Zoom. Given the very positive long term outlooks of the majority of shares in the ETF, I believe it has the potential to provide investors with strong returns over the next decade.

More reading

• Should you buy ASX gold shares or FAANG stocks in August?
• I don’t normally buy ETFs, but I would invest in these 2
• 3 ways to play the skyrocketing tech shares
• Top ASX Stock Picks for August 2020
• 1 ASX share to take advantage of the strong FAANG shares

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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With interest rates at their lowest levels in history and unlikely to move higher for some time, I believe dividend shares remain the best place to earn an income.

But which ASX dividend shares should you buy? I think these would be top options right now:

Aventus Group (ASX: AVN)

Aventus is a retail property company which specialises in large format retail parks. It currently has a total of 20 centres which are home to a diverse tenant base of 593 quality tenancies. This includes major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. I like Aventus due to the way its portfolio is weighted heavily towards everyday needs. I believe this means it is better positioned than many property companies to ride out the pandemic. Goldman Sachs is very positive on the company and has forecast a sizeable ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a very generous forward 8.2% distribution yield

Coles Group Ltd (ASX: COL)

Another option to consider buying is Coles. I think the supermarket giant is well-positioned to grow its earnings and dividend at a solid rate over the next decade. This is due to its defensive qualities, positive sales growth outlook, and potential margin expansion from its refreshed strategy. Based on the latest Coles share price, I estimate that it provides investors with a fully franked ~3.4% FY 2021 dividend yield.

Lendlease Group (ASX: LLC)

A final dividend share to consider buying is Lendlease. It hasn’t been a great 12 months for the international property and infrastructure company. However, I’m feeling confident that the worst is behind it. In light of this and its burgeoning global development pipeline, I believe now could be an opportune time to invest. Especially for income investors. I estimate that it will pay a 57 cents per share dividend next year. Based on the current Lendlease share price, this equates to a 5.1% dividend yield.

More reading

• 3 high quality blue chip ASX 200 shares to buy
• Will the Coles share price rocket higher again in August?
• The ASX stocks hit by Victoria’s stage 4 forced shutdowns
• Why I would buy Coles and this ASX dividend share right now
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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