The Splitit Ltd (ASX: SPT) share price rocketed up to yearly highs of $1.915 during June, taking its market cap soaring to over $350 million. Its price of $1.12 at the end of June represents a monthly gain of 140% and was almost 450% up on its recent lows in March.

Since the end of June, Splitit’s share price has continued to storm higher, sitting at $1.48 dollars at the time of writing. Shares of Splitit are up more than 193% for the year – a huge gain, particularly when compared to the 10.6% drop in the S&P/All Ordinaries Index (ASX: XAO) over the same period.

What was driving Splitit’s share price gains in June?

The increase in the Splitit share price follows a number of other well-known buy now, pay later (BNPL) shares that have been storming to new highs this year. However, it was the news that Splitit had partnered with global payments company Mastercard Inc (NYSE: MA) in particular that sent the share price surging.

On 18 June, Splitit announced its partnership with Mastercard, which saw the payments company’s share price increase a whopping 108% in one day. The agreement allows Splitit to integrate its instalment solution around the world by partnering with Mastercard. Splitit will be able to leverage Mastercard’s network of partners though the multi-year deal.

In Splitit CEO Brad Paterson’s words, the deal represents “a fantastic way to broaden the distribution of our solution, leveraging Mastercard’s incredible global reach, and build out a range of instalment services.”

Splitit and Mastercard will jointly develop instalment and related products, and there are plans to launch pilots across 3 markets ahead of a global rollout.

This announcement follows on from news in early March that Splitit had partnered with Mastercard’s rival Visa.

Now what?

There is plenty of talk that the investor-popular BNPL shares may be in a bubble, with the combined market cap of these companies exceeding $20 billion yet none turning a profit as yet.

Despite this, the Splitit share price has been on a fantastic run of late and found itself up another 8.42% today to close the day at $1.48 per share. 

More reading

• ASX buy now, pay later shares leading the recovery
• Why Coles, Kogan, Northern Star, & Splitit are charging higher
• Splitit share price surges 24% higher after record second quarter growth
• Does Afterpay have a competitive advantage?
• Afterpay expects sales to double to $11bn and launches $800m cap raise

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

The post Why the Splitit share price soared 140% in June appeared first on Motley Fool Australia.

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It has been a couple of weeks since the Freedom Foods Group Ltd (ASX: FNP) share price was last active on the ASX board.

On 24 June the diversified food company requested a trading halt while it investigated its financial position following the sudden exit of its CEO and CFO.

What’s the latest?

Unfortunately for shareholders, it is going to be some time until Freedom Foods shares return to action.

This afternoon the company provided an update on its suspension and requested an extension until 30 October 2020. Yes, you read that correctly, the embattled food company’s shares will remain suspended for over three and a half more months.

Why did Freedom Foods announce?

The Freedom Foods board requested the lengthy suspension because there are a number of interconnected activities that need to be completed before it will be able to provide a comprehensive update on the historical issues identified and the financial position and outlook of the company.

These activities include the conclusion of its investigation of the historical issues previously announced to the market such as doubtful debts from prior periods.

It also requires time to provide appropriate guidance in relation to the outlook for FY 2021. This includes any ongoing impacts of COVID-19 on the business, as well as the impact of potential operational improvements, strategic, and product initiatives.

The board also notes that it is busy searching for a permanent Chief Executive Officer and Chief Financial Officer. It is seeking to resolve these appointments as soon as possible. Though, given the circumstances, these roles may not be the easiest ones to fill.

Finally, it may require time for any potential capital initiatives. This may include the amendment of its syndicated and bilateral banking facilities to ensure it has sufficient balance sheet strength and financial flexibility to support its business going forward.

The Freedom Foods board commented: “The Board has formed the view that significant resources and time will be required to achieve a position where all of these activities are announced or finalised. Based on the work done to date, a period of voluntary suspension up to close of trading on Friday 30 October 2020 is considered a prudent and realistic timeframe to achieve these outcomes. If it is possible to reduce this period and thereby reduce the period of suspension that will be done.”

More reading

• ASX 200 rises 1.4%, Collins Foods delivers tasty returns
• Here’s why the Freedom Foods share price will be suspended for 14 days
• ASX 200 finishes higher, Afterpay hits new record
• Freedom Foods share price drops 14% as CEO goes “on leave”
• Short-sellers are stepping up their attack against these popular ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group 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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Listed investment company (LIC) WAM Capital Limited (ASX: WAM) has just announced a 7.75 cents per share final dividend. That brings the total dividend paid to WAM Capital shareholders over the past 12 months to 15.5 cents per share.

At today’s share price (at the time of writing) of $1.89, WAM Capital is now offering a trailing dividend yield of 8.2%. WAM Capital’s dividend typically comes fully franked as well (as is the case with this payout). Including these franking credits, WAM Capital’s grossed-up dividend comes in at a staggering 11.71%.

How does WAM Capital invest?

As a LIC, WAM Capital invests in a diversified portfolio of ASX shares. Originally, WAM Capital concentrated more on the small-cap side of the ASX investing world. but since this LIC has over $1.14 billion in assets under management, it now dabbles in the mid- and large-cap space as well. WAM Capital’s modus operandi is finding growing ASX companies with what the company describes as a ‘catalyst’ for further share price appreciation. This might be the identification of market undervaluation of a particular ASX share, an expected earnings beat, or an industry growth trend.

WAM Capital buys these undervalued companies and then sells them when the catalyst has been realised. This strategy has worked pretty well for WAM Capital. Since its inception in 1999, the LIC has returned an average of 15.6% per annum to its investors (before fees and taxes). Over just the past year, WAM Capital has lost 2.8% compared with the broader market’s 7.2% loss, meaning the company has delivered outperformance of 4.4%.

Right now, some of WAM Capital’s holdings include Elders Ltd (ASX: ELD), Bapcor Ltd (ASX: BAP), Adairs Ltd (ASX: ADH) and the A2 Milk Company Ltd (ASX: A2M).

Is WAM Capital a buy for ASX dividend income today?

A stupendous grossed-up dividend of 11.71% might make this company look like a no-brainer buy right now. But perhaps things aren’t as rosy as they seem for WAM Capital. An LIC is only able to fund dividend payments through its profit reserve. If the reserve is full, the dividends can flow freely. But if the reserve is empty, no such bounty is possible.

As of 31 May, WAM Capital had 6.1 cents per share left in the profit reserve after funding this 7.75 cents per share payout. Now, even if mathematics isn’t your strong suit, you can probably see the problem here. WAM Capital is going to have to pull more than one rabbit out of its hat if it is to keep its current payout levels going forward.

The company even hinted at this upcoming flashpoint in its dividend announcement today, stating:

In FY2021, the Company’s ability to continue paying fully-franked dividends is dependent on generating additional profit reserves and franking credits. the ability to generate franking credits is reliant on the receipt of franked dividends from investments and the payment of tax on profits.

In other words, ‘we’re in trouble here’.

Foolish takeaway

In my view, WAM Capital’s generous dividend is masking the possibility this company may be a dividend trap right now. As such, I would stay away from WAM Capital today — especially as the company is trading at a premium to its underlying assets anyway. There are better deals out there for dividend investors, in my opinion.

More reading

• These ASX shares are the winners and losers in the “new normal”
• My bull and bear case for the ASX share market
• Why I’m watching the a2 Milk share price
• You’re probably a customer of these 3 ASX shares. Should you own them too?
• Do you have $5,000 to invest? Here are the ASX shares I would buy right now

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Elders Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX income stalwart WAM Capital announces 8.2% dividend appeared first on Motley Fool Australia.

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I continue to believe that the mid cap space is a great place to look for long term investment ideas.

This is because I feel there are a number of mid cap shares that have the potential to grow into large caps in the future, potentially generating outsized returns for investors.

Two mid cap shares that I would buy this month are listed below:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a provider of software products and services to the wealth management and funds administration industries. I’ve been very impressed with the solid earnings growth the company has generated over the last couple of years. This has been driven largely by the increasing popularity of its Sonata wealth management platform.

And thanks to the Sonata platform’s large market opportunity, I expect it to underpin strong earnings growth over the next few years. This should be complemented by its acquisitions of Midwinter for $50 million and FinoComp for $25 million. Both businesses are expected to bolster its offering and open it up to new and lucrative markets.

PolyNovo Ltd (ASX: PNV)

I think this medical device company is another mid cap share to buy. PolyNovo is the company behind the NovoSorb Biodegradable Temporising Matrix (BTM) technology, which was developed at CSIRO. When trauma to the skin occurs, large portions of the surface of the skin and its deeper layers are destroyed. NovoSorb BTM can be used to temporarily close the wound and aid the body in generating new tissue.

NovoSorb BTM has a sizeable $1.5 billion market opportunity in the treatment of full-thickness wounds and burns. But management isn’t resting on its laurels and is seeking to extend its usage into other markets. It has its eyes on the hernia and breast treatment markets, which are even more lucrative. It estimates that these two markets would add an additional $6 billion to its addressable market.

More reading

• 3 innovative ASX shares to buy
• Analysis: Is the Polynovo share price good value?
• How I’d build a $100,000 portfolio with ASX growth shares
• 3 exciting ASX growth shares to buy with $3,000 today
• Why Polynovo and JB Hi-Fi shares outperformed in FY20

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

The post Why PolyNovo and this ASX mid cap share could be future large caps appeared first on Motley Fool Australia.

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The recent surge in ASX retailers like the JB Hi-Fi Limited (ASX: JBH) share price may be running out of puff. A leading broker is recommending investors rotate to better value stocks.

This advice comes at a time of renewed worries about a second wave of COVID-19 infections as large parts of Victoria re-enters a lockdown.

While several ASX retail stocks benefitted from the first nationwide shutdown to contain the pandemic, they may not get a repeat boost this time round.

ASX retailers at risk of a de-rating

In fact, the analysts at Macquarie Group Ltd (ASX: MQG) thinks the re-rating that lifted the sector is at risk of deflating.

This is because government support programs like JobKeeper have provided a temporary shot in the arm to consumers, limited the spike in unemployment and given many low wage earners a pay rise even.

“We believe these short-term catalysts are likely to be unwound in next couple of months, the early wins from holding these names are likely to have already occurred,” said Macquarie.

COVID-19 ASX winners losing their crown in second lockdown

Consumers that were forced to stay and work from home have rushed to buy home office supplies. Many have also started on DIY projects around the home to occupy and distract themselves.

This provided the Wesfarmers Ltd (ASX: WES) share price a big boost as group benefitted through its Bunnings and Officeworks stores.

The JBH share price was also another big winner as sales of computers and IT accessories took off, while the demand for home delivered food made the Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price a tasty treat for investors.

While these retailers will continue to benefit from the ongoing COVID-19 disruption, they probably won’t get the same uplift the second time round.

Earnings forecasts at risk

“As the world and consumer settings return to a more normal setting over the next couple of years, so too will spending patterns,” said Macquarie.

“This suggests that using FY20 or FY21 as a base year for calculating sustainable earnings and valuation is likely to lead to disappointment.”

For this reason, Macquarie downgraded its recommendation on Wesfarmers, JB Hi-Fi and Domino’s to “neutral” from “outperform” even though it didn’t change its earnings forecasts for the trio.

ASX stocks to buy on second wave fears

The broker now favours consumer staple stocks, namely the major supermarkets. These include the Woolworths Group Ltd (ASX: WOW) share price and Coles Group Ltd (ASX: COL) share price.

Both these stocks outperformed the S&P/ASX 200 Index (Index:^AXJO) today as panic buying of groceries due to the new Victorian lockdown will provide a lift to sales that analysts weren’t counting.

Macquarie is recommending both supermarket stocks as “outperform”.

More reading

• 2 reasons early super withdrawal might be a bad idea
• Top brokers are urging investors to buy these ASX stocks today
• Goldman Sachs names the ASX retail shares to buy and the ones to avoid
• My bull and bear case for the ASX share market
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Woolworths Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why it’s time to rotate out of JB Hi-Fi share price and these popular ASX stocks: Macquarie appeared first on Motley Fool Australia.

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Today, the Vault Intelligence Ltd (ASX: VLT) share price rose by 19.12% to $0.40 cents following a takeover offer from Damstra Holdings Ltd (ASX: DTC). 

What were the terms of the offer?

If the takeover goes ahead, Vault shareholders will receive 1 share in Damstra for every 2.9 Vault shares they hold. This values Vault at an implied $0.464 cents per share. The offer represents a premium of 36.5% over the Vault closing price on 6 July of $0.34. If the deal goes ahead, Vault shareholders will own 25% of fully diluted Damstra-issued capital.

According to an announcement released by Damstra, each company has highly complementary product sets and respective client bases. Damstra is a global provider of integrated workplace management solutions, and expects that the takeover will provide increased revenue diversity, greater scale and a platform for accelerating growth. It also expects synergies of $4 million within 12 months of the acquisition.

Damstra also announced that its financial year 2020 unaudited earnings before interest, tax, depreciation and amortisation were $5.5 million. 

According to Damstra, the merged group will have pro-forma revenue and other income of $33 million to $35 million.

The directors of Vault, including the company’s CEO and founder, recommended that Vault shareholders vote in favour of the offer.

About the Vault Intelligence share price

Vault Intelligence is a software provider that provides solutions for workforce performance. The software provided by Vault involves wearable solutions with applications including smart watch-based software. Vault aims to deliver productivity gains to to organisations while helping them to manage the risk, safety, security, protection and connection of workers. 

Vault currently has a number of partnership for distribution of its software. The company recently signed an agreement with Vodafone New Zealand for that company to become a reseller of its software. It also recently signed an agreement with a Singapore blue-chip customer for an upscale from 1,000 solo licenses to 7,500 solo licenses with over 2,500 wearable devices provisioned in June. Vault also has an agreement with Peninsula Health for the support of 40,000 seniors. 

During the June quarter, Vault also signed agreements with NZ Post, Visy Recycling, Hirepool, Sorbent, Asaleocare, DB Breweries and multiple councils across Australia and New Zealand.

The Vault Intelligence share price is up 344% from its 52 week low of $0.09. It has dropped 2.44% since the beginning of the year, but has increased 81.8% since this time last year.

More reading

• Why PolyNovo and this ASX mid cap share could be future large caps
• Why it’s time to rotate out of JB Hi-Fi share price and these popular ASX stocks: Macquarie
• 5G Networks share price surges 9% higher on acquisition announcement
• 2 reasons early super withdrawal might be a bad idea
• Forget term deposits and buy these strong ASX dividend shares

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings 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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Today the 5G Networks Ltd (ASX: 5GN) share price surged on higher on news that it had successfully completed the acquisition of ColoAU, a wholesale provider of data centre services and hyper-speed global networks. The 5G Networks share price is up by more than 9% and is sitting at $1.32 per share at the time of writing.

What does 5G Networks do?

5G Networks is a licensed telecommunications carrier that operates across Australia. The company supplies cloud-based solutions, data networks and offers management services.

In June the company successfully raised $18.2 million in funds to pursue growth projects through expansion of its fibre network in Sydney and Melbourne, and new builds in Brisbane and Adelaide focused on CBD demand.

What did 5GN announce today? 

This morning, the news that the teclo would be acquiring ColoAU sent the 5G Networks share price spiralling higher. 5G Networks agreed to purchase the company for $2.9 million, which represents a value that is four times that of ColoAU’s earnings before interest, tax, depreciation and amortisation.

ColoAU currently operates 6 datacentres in Australia, with its annual revenue sitting at $4.2 million. This acquisition will allow 5G Networks to fast track its wholesale section of business by utilising established ColoAU platforms. The company advised that it expects to realise synergies in the first 12 months, post-acquisition, in the range of $500–$700,000.

Through integration of the ColoAU network platform, 5G Networks’ wholesale customers will enjoy automated self-service capabilities. 5G Networks highlights this will allow it to meet the growing demand for high-speed connectivity across cloud platforms and data centre hosting in Australia and international markets.

The deal also allows 5G Networks to implement a number of benefits including cost avoidance and strategy acceleration, as it was planning to invest and build the networking technology recently deployed by ColoAU.

Commenting on the growth potential of the acquisition, Joe Demase, 5G Networks Managing Director, stated:

ColoAU allows us to fast track a number of growth strategies we have identified including the ability to employ system automation to augment the customer fulfilment process and accelerate the speed of service delivery. We believe our channel partner program will be further enhanced by offering alternative on-demand connectivity solutions which will seamlessly connect to over 67 leading data centres once our fibre network rollout is complete. Importantly, the international architecture of ColoAU’s network is also exciting as it opens the possibility of new markets and geographic expansion.

About the 5G Networks share price

The 5G Networks share price has been on solid run this year, gaining around 66% and surpassing a market cap of $100 million. Its current price of $1.32 per share is still down by 8% on this time last year, but is up more than 140% since its March 2020 lows.

More reading

• Why the 5G Networks share price is charging higher today
• The smartest ASX shares to invest $10,000 in right now

Motley Fool contributor Daniel Ewing 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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One of the Federal Government’s policy responses to the coronavirus pandemic has been to allow the withdrawal of up to $20,000 from superannuation funds. Eligible persons are allowed to make one, tax-free withdrawal of $10,000 in the 2020 financial year, and a further $10,000 withdrawal in FY21 (which began last week on 1 July).

According to reporting in today’s Australian Financial Review (AFR), this program has proven remarkably popular. The AFR reports that the initial $27 billion in early withdrawals that Treasury forecasted is likely to be well exceeded.

Apparently, more than 2.4 million Australians have had early super release applications approved as of 5 July.

But there are many questions surrounding this policy decision. So let’s look at two of the main reasons I think withdrawing $10,000 or $20,000 from your super account might not be such a great idea. I’d like to preface this by saying that I’m not passing any judgement on those who have chosen to access their super early out of genuine financial hardship.

1) Early super withdrawal damages your retirement fund

The whole point of our superannuation structure is that it capitalises on compound interest over many decades. Making regular contributions to a pool of cash that is invested into growth assets like ASX shares is a great way to harness the power of compounding. It’s why investing $1,000 per month with a 7% return over 30 years will net you a nest egg of $1.23 million (excluding taxes and transaction fees). This is despite only $360,000 actually being invested over the period.

Unfortunately, a great way to kneecap these kinds of returns is withdrawing capital early. Withdrawing $10,000 today could cost you $50,000 down the road. It’s a high-cost transaction, have no doubt about it.

2) Most withdrawals were done at the market bottom

The first day Australians were eligible to access their super withdrawals was 20 April 2020. On that date, the S&P/ASX 200 Index (ASX: XJO) was down around 25% from its 2020 high watermark. In other words, most Aussies who cashed out their super did so after a massive share market crash. The ASX 200 has gone on to add nearly 11% since that date (plus some dividends). Unfortunately, these are gains anyone who cashed out some of their super missed out on.

It’s hard to quantify how damaging this action would have been for a retirement fund. Selling low is a great way to lose money, and it would have definitely stunted a super fund’s return potential if this was done in April.

For anyone who has made a second withdrawal over the past week, it’s not as deleterious due to the market’s more recent gains. But despite these gains, the ASX 200 still remains around 17% below its 2020 peak.

Foolish takeaway

As I said above, I’m certainly not trashing anyone who has withdrawn capital from their super fund out of genuine financial need. That was the intent of the scheme, afterall. But there have been disturbing reports that many Aussies are withdrawing this money to ‘play the markets’. Remember, our super funds are there to support our retirement. That’s not something I would want to undermine lightly.

More reading

• Why it’s time to rotate out of JB Hi-Fi share price and these popular ASX stocks: Macquarie
• Top brokers are urging investors to buy these ASX stocks today
• My bull and bear case for the ASX share market
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble
• The Afterpay share price among ASX stocks hit by a broker downgrade today

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

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If you want to earn an income from traditional interest-bearing assets like term deposits, it is becoming increasingly difficult.

For example, at present Westpac Banking Corp (ASX: WBC) is offering 0.85% per annum yields on its 12-month term deposits. This is roughly in line with what other banks are offering.

Based on this rate, if you invested $1 million into these term deposits, you’d only get $8,500 of income each year. Which is certainly not enough to live on.

Fortunately, the Australian share market is home to a number of ASX dividend shares which offer vastly superior yields.

Two ASX dividend shares that I think would be great as part of a balanced income portfolio are listed below. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first dividend share to buy instead of a term deposit is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 stores leased to the hardware giant. Pleasingly, thanks to the strength of the Bunnings business, the trust appears to have been unaffected by the pandemic and continues to collect rent as normal. As a result, it is able to pay its distribution as normal this year. Looking ahead, I feel the trust is well-placed to grow its distribution modestly each year for the foreseeable future. Based on the current BWP share price, I estimate that it offers a generous 3.8% FY 2021 distribution yield.

Rural Funds Group (ASX: RFF)

Another dividend share that I think would be better than term deposits is Rural Funds. It owns a diversified portfolio of high quality Australian agricultural assets which include cattle properties, vineyards, and orchards. The main attraction to the company for me is its long tenancy agreements. With a weighted average lease expiry of over a decade and rental increases built into contracts, Rural Funds appears well-positioned to increase its distribution each year for a long time to come. This will be the case in FY 2021, with management intending to lift its distribution by 4% to 11.28 cents per share. Based on the current Rural Funds share price, this represents a forward 5.6% yield.

More reading

• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble
• AFG share price flat despite revealing 30% increase in lodgements
• These ASX shares are swept up by the new Victorian COVID-19 lockdown
• Here’s what ASX investors need to know about the RBA’s rate decision today
• I think the Rural Funds share price is a buy after insider buying

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

The post Forget term deposits and buy these strong ASX dividend shares appeared first on Motley Fool Australia.

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When it comes to investing in ASX shares, everyone is different. Some investors like to invest in the shares they think have the most potential to climb further in value. Others will buy the shares most likely to pay large, fully franked dividends.

But some ASX investors (although not as many as I think should) also trade in international shares. That is, those companies listed on exchanges beyond our shores.

On that note, let’s look at the 5 most popular international shares that were traded on Commonwealth Bank of Australia (ASX: CBA)’s CommSec platform. CommSec is the largest and most popular brokering platform in Australia. This makes it pretty representative of the entire ASX investing community. This data comes from CommSec’s website and covers the period between 29 June and 3 July.

Which international shares are ASX investors buying?

1) Tesla Inc. (NASDAQ: TSLA)

If you haven’t heard of Tesla and its eccentric CEO, Elon Musk, then you may have been living under a rock. This electric car maker has been grabbing worldwide headlines in recent weeks as its share price has exploded to unprecedented highs. Just one month ago, Tesla shares were trading around US$949. Today, those same shares are touching US$1,390, up more than 46% in just 4 weeks. And anyone who bought Tesla exactly a year ago is looking at a 5-bagger stock today.

2) Facebook Inc. (NASDAQ: FB)

Just like Tesla, everyone knows Facebook and its (slightly infamous) CEO, Mark Zuckerberg. Facebook is easily the largest social media company in the world. Not only does it own the ubiquitous Facebook platform, but it also owns Instagram, Messenger, and Whatsapp – all among the most frequently used apps on the planet. Facebook has certainly had its fair share of controversies over the years, but that hasn’t stopped Facebook shares climbing ~65% since mid-March.

3) Apple Inc. (NASDAQ: AAPL)

Apple is the largest company in the world right now for a reason. It has probably the world’s most valuable brand and makes one of the most popular consumer products of all time in the iPhone. But Apple has also been expanding into services over the past few years with offerings like Apple Pay, Apple Music, and Apple TV. It’s been a great performer for over 2 decades now, so it’s no surprise Apple shares remain popular with Aussie investors today.

4) Microsoft Corporation (NASDAQ: MSFT)

Apple may currently be the largest company in the world, but Microsoft is a close second. Owning the world’s most popular productivity programs in Microsoft Office, as well as the most popular computer operating system in Windows, is just part of Microsoft’s success story. It’s also a heavyweight in the lucrative world of gaming with its Xbox consoles as well as a formidable player in the rapidly-growing cloud space with its Azure platform. Not a bad stable of operations for this tech titan.

5) Amazon.com Inc. (NASDAQ: AMZN)

Last but certainly not least is Amazon. Amazon is one of the most striking American success stories in history. It was started as an online bookstore back in the late 1990s by Jeff Bezos. Today, Bezos is the world’s richest person (worth around US$166 billion) and Amazon is a US$1.5 trillion behemoth. How else would you describe a company that turns over hundreds of billions of dollars in revenue each year? Furthermore, Amazon continues to expand, push boundaries and disrupt industries to this day. With Amazon shares rocketing past US$3,000 per share in just the last week, no wonder Aussie investors are getting interested in sharing some of the pie.

Foolish takeaway

So there you have it, Aussies’ top 5 favorite international shares. No real surprises in this list, but all of these shares have done exceptionally well for their investors over the past few months. It just goes to show how a household name can also make a phenomenal investment.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Facebook and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Facebook, Microsoft, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $115 calls on Microsoft, long January 2021 $85 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon, Apple, and Facebook. 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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