Shareholders have overwhelmingly voted against executive pay packets at AMP Limited (ASX: AMP). Last week’s annual general meeting saw 67% of shareholders vote against the board’s remuneration report for 2019.

Chief Executive Francesco De Ferrari was paid approximately $4 million in base salary and short-term rewards. Non-executive directors were paid $3.79 million as a group. 

The wealth manager delivered a $2.5 billion loss last financial year and did not pay a final dividend. The AMP share price is down around 35% in the past 12 months and is currently trading for $1.42.

What does the vote mean?

The shareholder vote does not prevent these payments being made, but puts pressure on the board. The ‘two strikes’ rule means a vote on a board spill will be triggered if more than 25% of shareholders vote against two remuneration reports. 

AMP struggles with legacy issues

AMP is still making amends for practices uncovered in the Royal Commission.The wealth manager continues to repay customers for inappropriate advice and for charging customers for advice never received. In its most recent financial year, AMP paid $190 million to clients in misconduct fees. Impairments of $2.35 billion were recorded to address legacy issues.

AMP failed to pay either interim or final dividends last year as its wealth management business sagged. Chairman David Murray told shareholders the decision was disappointing, but in the long-term interests of the company. He  responded to shareholder criticism of executive pay packets by saying the pay reflected the size of the challenge ahead for AMP. 

Business reset 

The wealth manager is undertaking a fundamental reset of its business. Foundational steps in a three-year transformation are underway, but there is much work to be done. CEO De Ferrari said, “2019 was a year of fundamental reset for AMP. We rebased our business, set out a new group strategy, and strengthened our capital base to accelerate the execution of our strategy.”

AMP has shelved the divestment of its New Zealand wealth management operations due to the economic disruption of COVID-19. Offers did not meet expectations, so AMP has decided to retain and grow the business. 

AMP is proceeding with the sale of AMP Life. A deal was struck to sell the business to Resolution Life last year for $3 billion. Payment of the next dividend is dependent on the completion of this sale. Multiple complications have been encountered during the sale process. 

Foolish takeaway

The shareholder strike is an embarrassing blow for AMP. Previous voluntary cuts to fees were not enough to stave off shareholder anger. In April, AMP revealed at least $19.4 billion in outflows in the first 3 months of the year. The wealth manager better hope its transformation strategy brings results. 

More reading

• Is this the next major ASX financial institution to raise capital?
• In a further blow to millions of retirees, leading portfolio manager says ASX banks could slash dividends by more than half

Motley Fool contributor Kate O’Brien 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course for a strong start to the week. The benchmark index is up 1.2% to 5,454 points at the time of writing.

Here’s what has been happening on the market today:

Big banks push higher.

The big four banks are doing their part today, with three of the four pushing higher on Monday. The best performer in the group is the Westpac Banking Corp (ASX: WBC) share price with a gain of 0.8%. The easing of lockdown restrictions appears to be lifting the banks and the market as a whole today.

Cochlear sales fall 60% in April.

The Cochlear Limited (ASX: COH) share price is pushing higher despite revealing a sharp decline in sales. During the month of April, sales revenue across the Cochlear business fell by ~60% on the prior corresponding period. The sales of cochlear and acoustic implants were the most severely affected. Management also revealed that it is cash flow negative at present, but expects its strong liquidity position to be sufficient to navigate the crisis.

Suncorp updates the market.

The Suncorp Group Ltd (ASX: SUN) share price is charging higher after the release of a trading update. The banking and insurance giant revealed that its insurance business has been both positively and negatively impacted by the pandemic. It has been negatively impacted by landlord loss of rent claims, but positively impacted by lower motor claims. Elsewhere, management notes that the company is currently well capitalised, with capital levels in excess of what is required to cover the expected deterioration due to the pandemic.

Best and worst ASX 200 performers.

The Webjet Limited (ASX: WEB) share price has been the best performer on the ASX 200 today with a 22% gain. Investors appear optimistic that the easing of lockdowns will lead to a recovery in travel bookings. The worst performer has been the Graincorp Ltd (ASX: GNC) share price with a 4% decline. This follows news that China is threatening to slap an 80% import tax on Australian barley.

Returns as of 7/4/2020

James Mickleboro owns shares of Westpac Banking. 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 Webjet Ltd. The Motley Fool Australia has recommended Cochlear 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.

More reading

• 3 ASX 200 shares to watch this week
• Why Fisher & Paykel Healthcare, Graincorp, Polynovo, & SEEK are dropping lower
• ASX tourism shares on watch as government flags easing of coronavirus restrictions
• Indonesian market boom for 6 ASX shares
• Where to invest $20,000 into ASX shares for strong long term returns

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The coronavirus pandemic has changed the way we live, work, and shop. Restrictions are starting to lift, but normality may still be a while away. Our habits have changed, and some of these changes may be permanent. 

While in lockdown we’ve seen significant increases in online shopping, demand for remote working solutions, and home cooking. This has impacted consumer spending patterns and the way we interact with businesses. Some companies are better positioned for this shift than others. 

Certain products and industries are seeing increased demand. In some cases, these increases may be sustained. Suppliers of these products and services will benefit from these tailwinds in the months to come. 

So where do you invest if you want to survive (and thrive) in the coronavirus pandemic? We took a look at recent changes to find 4 ASX shares that are leveraged to these trends. 

Coles Group Ltd (ASX: COL) 

First it was panic buying, then it was baking challenges. The major supermarkets have been the major beneficiaries of coronavirus buying trends. Along with competitors Woolworths Group Ltd (ASX: WOW) and Metcash Limited (ASX: MTS), Coles has benefited from a surge in sales. 

In the March quarter, Coles reported a 12.4% increase in total sales which reached $9,226 million. Supermarket sales were up 13.1% which marks the 50th consecutive quarter of comparable sales growth for supermarkets. 

Liquor was negatively impacted by bushfire smog over capital cities and floods in January and February, before seeing the impact of COVID-19 later in the quarter. Still, liquor sales increased 7.2% over the quarter to $740 million. 

With the outbreak of the coronavirus pandemic, demand for online shopping surged, putting pressure on supply chains. Coles has leased 2 high-tech sheds in Sydney and Melbourne as it looks to automate its supply chain and speed up home deliveries. 

Last year, Coles entered a service agreement with Britain’s Ocado Group to bring an online grocery platform, fulfilment technology and home delivery solution to Australia. Online fulfilment automation is expected to improve customer service and reduce waste, as well as support employment opportunities at a time when many businesses are cutting or delaying investment. 

Zip Co Ltd (ASX: Z1P)

Buy now, pay later services have seen demand continue unabated through the coronavirus pandemic. Afterpay Ltd (ASX: APT) competitor Zip reported an 81% increase in monthly revenue in April, while customer numbers increased 66% to 2 million. 

Zip Co focuses on acquiring prime and near-prime customers with a revolving line of credit to finance their retail purchases. Merchants offering Zip include Amazon, Chemist Warehouse, Optus, Bunnings, and Big W. Merchant numbers increased 50% year-on-year in April, reaching 23,100. 

In April, monthly transaction volume increased to $181.6 million, an 86% increase year-on-year. Zip has reported that the start of May looks to be considerably stronger again by comparison to April. Managing Director Larry Diamond said, “our product differentiation and penetration into purchases for online, the home, and everyday categories, delivered robust transaction volume.”

Zip believes its success is due to the defensive nature of its model, which plays in many categories that customers are spending in. Its exposure to online has helped the business, as has the platform’s ability to allow users to pay bills and make purchases across groceries, retail and home. 

Ramsay Health Care Limited (ASX: RHC)

Healthcare is non-negotiable, especially in the current environment. Ramsay Health Care is one of the largest hospital operators in Australia. Operating nearly 500 facilities across 11 countries, Ramsay Health Care has expanded its capacity significantly in the last couple of years. 

The hospital operator has finalised deals with the Queensland and Victorian Governments to make facilities available during the coronavirus pandemic. In return for maintaining full workforce capacity at its facilities, it will receive net recoverable costs for its services. 

Private hospitals took a revenue hit when the government cancelled certain elective surgeries. Under the new agreements with state governments, Ramsay Health Care will break even on earnings before interest and tax (EBIT). 

Ramsay Health Care undertook a capital raising in April in the face of an uncertain operating environment. The healthcare company raised $1.4 billion via a placement and share purchase plan. Proceeds of the raising were used to partially repay revolving debt facilities. 

Ramsay Health Care performed strongly prior to the COVID-19 pandemic, with revenue increasing 22.5% to $6.3 billion in H1FY20. Core net profit after tax (NPAT) of $273.6 million was recorded, up 3.4% on the prior corresponding period. Earnings per share increased 3.7% to 132.5 cents. 

Non-urgent elective surgeries are resuming following the lifting of the government ban on 27 April. In the longer term, Ramsay Health Care is likely to benefit from trends including the aging population and increased healthcare spending. 

Xero Limited (ASX: XRO) 

Xero provides cloud-based accounting software to small and medium businesses. Although many of its customers will have suffered in the downturn, they still have tax obligations so will continue to require accounting software. 

Xero’s product is sticky and boasts over 2 million subscribers. It is operating in an industry where structural growth is being driven by regulation and a broad-based shift to the cloud. Increased remote working is also likely to hasten this shift to the cloud. This could push more potential clients towards Xero’s solutions.

Xero releases its full-year financial results this month which will provide more clarity on how it has been impacted by COVID-19. The company was well-positioned prior to the crisis with a self-funding business model and strong balance sheet. 

Xero has established itself in a dominant Software-as-a-Service position in Australia and New Zealand. It also has a growing presence in the UK and US. Prior to the pandemic, Xero was seeing healthy growth in subscriber numbers. While this may slow in the near term, long term structural factors still work in Xero’s favour. 

More reading

• Why Advance Nanotek, Macquarie, Tyro, & Zip Co shares are charging higher
• 3 ASX 200 shares to watch this week
• Where to invest $20,000 into ASX shares for strong long term returns
• These ASX shares booked the biggest gains last week
• These ASX 200 shares are up over 1,000% in just 3 years

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Woolworths Limited, and Xero. The Motley Fool Australia has recommended Ramsay Health Care 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 Buy these 4 ASX shares to survive the pandemic appeared first on Motley Fool Australia.

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The best ASX dividend shares for income are the only ones I’d trust to fund my life’s expenses.

I just don’t think that shares like Westpac Banking Corp (ASX: WBC) and Sydney Airport Holdings Pty Ltd (ASX: SYD) are going to cut it over the medium-term, particularly due to the coronavirus.

Here are three of the best ASX dividend shares for income in my opinion:

WAM Research Limited (ASX: WAX) 

I think, WAM Research is one of the best listed investment companies (LICs) that focuses on ASX shares. It’s run by Wilson Asset Management (WAM) and it targets small and medium undervalued companies where there’s a potential catalyst to boost the value of the company.

Over the past decade it has generated some of the best LIC gross investment returns. WAM Research has managed to do this whilst holding onto high levels of cash. It holds dozens of shares, so it has a diverse portfolio.

It has increased its dividend every year since the GFC and it still has an attractively large profit reserve so it can keep paying dividends. WAM Research currently has an annualised grossed-up dividend yield of 11.1%.

APA Group (ASX: APA) 

APA is one of the best ASX dividend shares in terms of how many years it has consecutively grown its income to shareholders. The distribution has grown every year for over a decade and a half, including through the GFC.

It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

I’m excited by the prospect of the company looking at US opportunities. America is a large market there and earnings diversification would make the company an even safer income bet.

Using the 50 cents per unit distribution guidance, it currently offers a distribution yield of 4.3%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

I think Soul Patts could be the best ASX dividend share. It has grown its dividend every year since 2000 and has paid a dividend every year in its existence, which stretches back over a century.

The investment house funds its annual dividend just from the investment income it receives, less operating costs. The retained cash profit is re-invested into more long-term opportunities.

I believe some of its largest positions still have exciting medium-term growth prospects. The TPG Telecom Ltd (ASX: TPM) merger with Vodafone Australia is exciting for all of the potential synergies and bigger dividends. Brickworks Limited (ASX: BKW) has a promising long-term future in the US from productivity improvements alone.

Soul Patts currently has a grossed-up dividend yield of 4.7%.

Is it time to buy the best ASX dividend shares?

If income is your only concern then I think all three could be a buy today. However, APA’s share price has recovered strongly and WAM Research is probably trading at an expensive premium. Soul Patts would be my preferred pick today for dividends and growth.

More reading

• Where I’d invest $1,000 into ASX shares right now
• 2 ASX shares that every investor should own
• 3 ASX dividend shares raising dividends like clockwork
• Why I’m even more confident about the Soul Patts share price
• How to make a $1 million share portfolio by investing $1,000 a month

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. 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 3 of the best ASX dividend shares for income appeared first on Motley Fool Australia.

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It’s not exactly breaking news to say we’re in the middle of a health pandemic.

And you don’t have to be a rocket surgeon to know that the economy has taken an almighty hit, as a result.

The good news — the good lord willing and the creeks don’t rise — is that the actions of the authorities (and maybe not just a little good fortune) mean the virus is largely controlled, and we’re on track to getting back to life-as-somewhat-normal, including a staged reopening of the economy.

I’ve never been afraid to have a dig at either side of politics, if they’ve deserved it, but the handling of this crisis — unlike the bushfires — has been very good. Sure, hindsight is 20/20, and there are things that could have been done differently, but the PM and Premiers have done a very good job.

What has been impressive is not only the actions taken, but the public presentation. In my (limited!) travels and conversations, people seem reassured and prepared to do their bit. Leadership is, in no small part, about being seen, and heard, and our state and federal leaders have done very well.

Which — and let’s not understate the importance of this — means we, as a country, can now turn our attention to the recovery, while others are still dealing with the fallout.

The reopening must be slow. It must be staged, and carefully calibrated. We’ve seen, from South Korea, what happens if we move too quickly: soon after bars and nightclubs were reopened, 27 people have tested positive from as little as one infected person spreading the virus. Bars and nightclubs are now closed again, there.

But just how sick is our economy?

What do governments need to do, now?

And what will the recovery look like?

Of course, I have a view. And I like to think it’s a reasonably informed one.

But I’m not an ex-chief economist of a Big 4 bank.

The good news is that Warren Hogan is!

Now Industry Professor at UTS, Warren has been an active participant in watching, modelling and commenting on the economy for his whole working life, in a number of different roles.

Warren had previously joined me for one of our most popular podcast episodes ever, earlier this year. At the time, if anyone was talking about Coronavirus, it was as a small, localised issue in China.

Almost four months later, to the day, it’s an understatement to say that things have changed.

So he’s back!

Warren was kind enough to agree to chat to me again late last week, and it was a fascinating conversation.

Some of my views were confirmed. He politely disagreed with others. I learned a lot.

It was a great conversation, and I think you’re really going to enjoy listening.

Warren touched on how he sees the economy right now, what he thinks the government should do next and, importantly, how he sees the recovery from here.

If you’re interested in the economic circumstances we’re in, and what the recovery might look like, you’re going to want to take a listen.

In short — you don’t want to miss it.

If you’re reading this on an iPhone, you can find a link to the podcast, here.

If you’re using an Android phone (or you’re reading this on a computer) just open your favourite podcast app and search ‘Triple M Motley Fool Money’. Warren’s episode was published last Thursday afternoon. If you need a suggestion for an Android-based podcast app, I use Pocketcasts. You can find it on the Google Play Store here.

(And, of course, don’t forget to subscribe while you’re there — we think you’ll like what’s coming up, so you don’t want to miss it!)

Have a great week, Fools!

More reading

• Why Advance Nanotek, Macquarie, Tyro, & Zip Co shares are charging higher
• Are ASX retail shares undervalued today?
• 3 ASX 200 shares to watch this week
• Why Fisher & Paykel Healthcare, Graincorp, Polynovo, & SEEK are dropping lower
• ASX tourism shares on watch as government flags easing of coronavirus restrictions

Motley Fool contributor Scott Phillips 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.

The post An economist’s expectations for coronavirus and beyond appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and started the week on a very positive note. In late morning trade the benchmark index is up 1.2% to 5,456.3 points.

Four shares that have climbed more than most today are listed below. Here’s why they are charging higher:

The Advance Nanotek Ltd (ASX: ANO) share price is up 14% to $5.36 after the release of a trading update. The advanced materials company revealed that it expects its net profit before tax to be approximately $8.4 million in FY 2020. This will be 2.5 times greater than FY 2019’s profit before tax. The company also advised that sunscreen manufacturing has recommenced in the United States. And although manufacturing is occurring at smaller volumes, it anticipates sales volumes to return to normal.

The Macquarie Group Ltd (ASX: MQG) share price is up almost 5% to $110.22. This gain may have been driven by a broker note out of Morgan Stanley. This morning the broker retained its overweight rating and lifted the price target on the investment bank’s shares to $120.00. This offset a downgrade by Credit Suisse to neutral with a $107.50 price target.

The Tyro Payments Ltd (ASX: TYR) share price has jumped over 8% to $3.67. This follows the release of its weekly trading update. According to the release, Tyro’s transaction values have continued to recover. During the week ending May 8, its transaction value was $315 million. This is down 23% on the prior corresponding period. A week earlier, its transaction value was down 27%.

The Zip Co Ltd (ASX: Z1P) share price has stormed a further 8.5% higher to $3.55. Investors have been buying the buy now pay later provider’s shares since the release of a strong trading update last week. During April, Zip Co’s monthly revenue increased 81% on the prior corresponding period to $15.1 million. The company also reported an 86% lift in monthly transaction volume to $181.6 million and net bad debts of 1.99%.

More reading

• How Macquarie Group is vying to unseat CBA
• ASX 200 Weekly Wrap: New ASX bull run continues
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Which is the cheapest ASX bank stock on the market?

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 Advance NanoTek Limited, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie 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.

The post Why Advance Nanotek, Macquarie, Tyro, & Zip Co shares are charging higher appeared first on Motley Fool Australia.

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It’s fair to say it’s been a disappointing start to the year for ASX retail shares. Many of the biggest retailers have shed billions in value and watched their shares plummet lower in 2020.

But with the government looking to ease COVID-19 restrictions and the economy picking up again, are ASX retail shares back in the buy zone?

Which ASX retail shares are worth buying today?

I think in these uncertain times it’s not as simple as just buying across the sector. That’s particularly the case with retail which varies greatly and will be impacted in different ways in 2020.

I think some of the electronics retailers like JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) could be in the buy zone.

JB Hi-Fi shares are down 8.06% in 2020, while the Harvey Norman share price has slumped 26.46% this year (at the time of writing). JB Hi-Fi has been one of the outperforming ASX retail shares thanks to increased home electronics sales.

More Aussies are working from home due to the current restrictions. As a result, JB Hi-Fi has seen a surge in computer monitor and other work-related sales in 2020, while Harvey Norman has lagged its rival given its more diversified product areas.

That being said, if you’re after an income boost this year, Harvey Norman could be an option. The ASX retail share is yielding 10.89%, but I do think that may be slashed as a result of reduced earnings in 2020.

One other option in the retail sector may be Scentre Group (ASX: SCG). Scentre is an Australia real estate investment trust (A-REIT) that operates the Westfield shopping centres across Australia and New Zealand.

Scentre shares have been smashed in 2020 and are trading 43.30% lower in 2020. That could mean Scentre shares are a bargain to be snapped up, in anticipation of shopping centres seeing increased traffic this year upon re-opening. Scentre is a top ASX retail dividend share with a tidy 8.41% dividend yield on offer right now.

Foolish takeaway

There are many ASX retail shares that could be in the buy zone right now. Given the uncertainty ahead, I wouldn’t rely solely on price-to-earnings (P/E) ratios or dividend yields at the moment. The key is to buy and hold companies with strong balance sheets and stable tenants that can weather the current storm.

More reading

• These are the 10 most shorted ASX shares
• 3 ASX shares to buy as a beginner
• Top brokers name 3 ASX 200 shares to buy next week
• Top broker urging you to buy this ASX 200 retail stock next week
• ASX shares and investing trends that could boom post COVID-19

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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 Are ASX retail shares undervalued today? appeared first on Motley Fool Australia.

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