How much would you have today if you had invested $10,000 in the Kogan.com Ltd (ASX: KGN) share price 5 months ago?

Kogan has been one of the most dramatic ‘rags-to-riches’ ASX shares to have held over the past 5 months. Like other hot growth stocks such as Afterpay Ltd (ASX: APT), Kogan shares have significantly whipsawed in value over the course of 2020 so far. It was hard hit during the March crash, but investors quickly re-rated Kogan when it became clear how much the coronavirus pandemic was benefitting the business.

What does Kogan do?

Kogan is an e-commerce company that is quickly emerging as the ASX’s answer to the famous Amazon.com, Inc – the undisputed behemoth of global online retailing. Kogan started life way back in 2006 and has always adopted an ‘online only’ model. It started out by selling electronics and TVs, but has expanded over the past 15 years into everything from insurance and groceries to furniture and superannuation. It sells a wide range of branded products as well as its own ‘home-brand’ range.

How has the Kogan share price performed in 2020?

Now to the part you’ve all been waiting for. So, Kogan shares have had a volatile 2020 so far. They started the year trading for $7.47 but crashed spectacularly in the market crash that the pandemic brought on in March. Kogan reached a low of $3.45 on 16 March. If an investor had invested $10,000 in Kogan shares on that date at that price (unlikely, but possible), they would have picked up 2,898 shares with some change left over. Fast forward to today and Kogan shares are trading for $20.80 at the time of writing. That would give those 2,898 shares a value of $60,278.40 today, a 500% gain. That’s some return! If that hypothetically lucky investor had sold those shares when Kogan set a new all-time high of $22.99 earlier this month, they would have banked a $66,625 windfall.

Eat your heart out.

Are Kogan shares still a buy today?

So, is the Kogan share price still a good buy post-$20? Well, I don’t think so, not if you’re after another 500% gain over the next 5 months anyway. But I still think Kogan is a great company which might be worthy of an investment today if you’re a long-term investor. Kogan was certainly the beneficiary of the March/April lockdowns which forced people to turn to inline shopping like never before. The company did post sales growth of around 40% in FY2020, which I don’t think will be topped in FY21. Even so, Kogan is a company growing its market share in the growing trend of online shopping. That’s a pretty good spot to be.

Kogan is a volatile share, so I’m not too keen on buying it this close to its all-time high. I’d love to own some, but I’ll be waiting for a pullback sometime in the future. Fingers crossed.

More reading

• These market veterans believe a share market pullback is coming. Here’s their surprising advice…
• 2 Warren Buffett quotes you need to read this week
• The Afterpay share price nears $100: buy, sell or hold 
• Why shares go low Mondays and high on Fridays
• Polynovo and 2 more ASX 200 shares to watch this week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen 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 Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon and 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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Finding an ASX dividend share with a yield of 10% per annum is not an easy task. Finding one that can sustainably pay such a yield is harder still.

The market doesn’t often price a company’s shares at a level that offers a 10% yield, so a lot of research and analysis is necessary when dealing with such an offer. And that’s exactly what we’ll be doing today with 2 ASX shares that I’ve found that do indeed offer yields of 10% or more per annum. So let’s see if we’d swipe left or right on these shares today.

2 high-yielding ASX dividend shares

1) Fortescue Metals Group Limited (ASX: FMG)

Fortescue is an iron ore miner that has grown into one of the biggest on the ASX today. Its shares have been on a tear recently, up more than 61% in 2020 alone. This can be mostly explained by the price of iron ore, which has exploded this year and remains around the historically-high US$120 per tonne level. Since it only costs Fortescue between US$12–13 to extract 1 tonne of ore, it’s a good time to be a shareholder of this company.

But let’s talk dividends, the reason why we’re here. In its earnings report for the 2020 financial year, Fortescue declared a final dividend of $1 per share. That brings the total amount of dividends paid in FY20 to a full franked $1.76 per share, which represents a trailing dividend yield of 10.09% on current prices (or 14.41% grossed-up).

Such a stupendous yield is hardly believable, but Fortescue shares did trade ex-dividend for the final payout this morning, so make sure you add that pinch of salt. Even so, this is a monster income stock to be sure. Now, iron ore is a notoriously cyclical commodity, so its fairly certain that the company will not be paying $1.76 in dividends every year ad infinitum.

Conversely, this company has such a low cost base that it should be able to fund a hefty payout even if iron ore prices fall in the future. But as long as they stay near US$120, I expect the big dividends to continue from Fortescue.

2) WAM Capital Ltd (ASX: WAM)

Our second 10% dividend share is this listed investment company (LIC). WAM Capital has been around since 1999 and has made a name for itself as a strong dividend payer. It invests in a portfolio of ASX shares that it thinks have strong growth prospects. Some of its top holdings (as of 31 July) include the A2 Milk Company Ltd (ASX: A2M), Pushpay Holdings Ltd (ASX: PPH) and Adairs Ltd (ASX: ADH).

WAM Capital’s most recent dividend came in at 7.75 cents per share, which gives this company an annualised trailing yield of 7.21%, or 10.3% grossed-up with full franking. Although this yield looks great on paper, I’m less bullish in its sustainability than Fortescue’s. That’s because, as of 31 July, WAM Capital has advised investors that it only holds 8.7 cents per share in its profit reserve. That means it will be unable to continue to pay an annual 15.5 cents per share dividend for too much longer unless the company has some kind of windfall. This could well come to pass, but there’s a good chance it won’t in my view.

As such, I think I would prefer to hold Fortescue shares today instead.

More reading

• Are ASX banks or miners buys for dividends?
• This ASX-listed company makes $5.7 million per employee
• Why Fortescue, Openpay, Pointsbet, & Sezzle shares are dropping lower
• ASX 200 edges higher: Fortescue sinks, NAB sells MLC Wealth, Costa jumps
• Why the Fortescue share price is sinking over 7% lower today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk. 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 Rumble Resources Ltd (ASX: RTR) share price climbed 9.09% higher today to 18 cents. This came after the company announced it would buy 100% of the Western Queen Gold Project in Western Australia.

What are the acquisition details?

Rumble Resources struck a deal with Ramelius Resources Limited (ASX: RMS) to acquire 100% of the Western Queen Gold Project.

Rumble will pay for the project with its own shares. It will issue $1 million worth of shares at a price based on the 30-day volume weighted average price prior to completion. Rumble noted the ASX listing rules allow for the placement to be conducted.

With exploration of the Western Queen site ongoing, Rumble Resources will provide an update when the drilling project is completed and assays finalised.

Current resource estimates for the Western Queen deposit are 962,000 tonnes at 3.9 grams per tonne of gold, with a total resource of 120,000 ounces of gold.

About the Rumble Resources share price

Rumble Resources is an Australia-based resources company with a focus on finding value in existing mineral resource assets. It has been listed on the ASX since 2011.

In its June quarterly activities report, Rumble Resources said it had identified multiple high grade gold shoots at Western Queen. The company secured a 500%  increase in its landholding, extending the project strike to 35km.

Company drilling at its Fraser Range nickel, copper and gold project in Western Australia will target tier-1 discoveries of each of the minerals. The company also confirmed that drilling at Munarra Gully in Western Australia had revealed a tier-1 gold copper and silver system.

In addition, its drilling at Earaheedy in Western Australia had confirmed large scale zinc lead and silver discoveries. The company also identified 15 high priority target zones at its Lamil copper and gold project in Western Australia.

Rumble Resources had $6.19 million in cash on hand at 30 June 2020 up from $2.9 million at 30 March 2020.

The Rumble Resources share price is up 300% since its 52-week low of 4.5 cents. It has returned 157.14% since the beginning of the year. The Rumble Resources share price is up 100% since this time last year.

More reading

• Ramelius share price pushes higher after delivering 420% profit increase in FY 2020
• Take a look at last week’s worst performing ASX shares
• Indiana Resources share price jumps to 3-year high on acquisition news

Motley Fool contributor Chris Chitty 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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Many ASX shares are flying high at the moment. The March 2020 COVID-19 crash seems like a distant memory.

If you bought during the crash then you’re probably sitting on pleasing gains. But what happens if it crashes again? There are a few things that could cause a crash like the upcoming the US election, disappointing vaccine news or perhaps a geopolitical event relating to China.

Uncertainty is part of investing in ASX shares. But volatility can be exciting for investors, it creates opportunities to buy shares at cheaper prices.

These are three ASX shares I’d buy if the ASX were to crash again:

Share 1: Altium Limited (ASX: ALU)

I think Altium is one of the highest-quality businesses on the ASX. The Altium share price has risen by 48% since 23 March 2020. That’s a pretty strong recovery.

However, COVID-19 conditions have impacted Altium’s short-term and longer-term earnings. It temporarily lowered prices to attract more customers. In FY20 revenue only grew by 10% and ‘normalised’ earnings per share (EPS) only grew by 5%.

It’s now trading at 56x FY22’s estimated earnings. I like this ASX share, it’s one of my preferred long-term investment ideas. However, the buying price is very important with investing. I’d be interested in buying Altium shares were around 20% cheaper at approximately $30 (or lower).

Altium is still aiming for revenue of US$500 million by 2025, but it could take six to twelve months longer to reach. I’m comfortable waiting for a cheaper price before buying more shares. Perhaps the US election will throw up the best chance to buy at a price of around $30.

Share 2: Magellan Global Trust (ASX: MGG)

I think the best global businesses are worth owning in any portfolio. But the problem is that they’re not ASX shares, they’re listed overseas.

A good way to buy them could be to get indirect exposure with a listed investment trust (LIT) like Magellan Global Trust which is run by Magellan Financial Group Ltd (ASX: MFG).

Magellan likes to stick to the highest-quality ideas that it can find. It owns positions in names like Microsoft, Facebook, Alibaba, Alphabet, Tencent, Reckitt Benckiser, Atmos Energy, Visa, Eversource Energy, Mastercard, Xcel Energy and Crown Castle International.

During the last selloff we saw that not only did the Magellan Global Trust net asset value (NAV) fall, but the share price dropped even further. This offered an attractive discount to buy shares. I’d be happy to buy shares again with a NAV discount of around 10%.

Share 3: WAM Microcap Limited (ASX: WMI)

WAM Microcap is a listed investment company (LIC) which invests in small ASX shares. It targets businesses with market capitalisations under $300 million at the time of purchase.

The high-performing LIC is run by the team at Wilson Asset Management (WAM). It has been a very strong performer since inception, with gross portfolio returns of 17.8% per annum – that’s before fees, expenses and taxes.

During the COVID-19 crash, WAM Microcap’s share price plunged from $1.58 to $0.85. It has since recovered to $1.48.

If another crash occurred and WAM Microcap’s share price were to suffer heavily again, I think that would be a really good buying opportunity, particularly for income investors because WAM Microcap is paying out a large dividend each year.

At the current WAM Microcap share price it offers an ordinary grossed-up dividend yield of 5.8%. That yield doesn’t include the regular special dividends that it has paid in each of the last three financial years.

Foolish takeaway

I really like each of the above ASX shares. At the current prices I’m not eager to buy any of them, though a crash could create good buying opportunities for all of them. Due to WAM Microcap’s impressive returns, it would probably be the one that I’d be drawn to the most during another crash.

More reading

• Are ASX banks or miners buys for dividends?
• 4 fantastic ASX growth shares to buy in September
• 3 stellar ASX growth shares to buy right now
• 5 top ASX dividend shares you should never sell
• 2 ASX shares perfect for a starter portfolio

Tristan Harrison owns shares of Altium, MAGLOBTRST UNITS, and WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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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The Event Hospitality and Entertainment Ltd (ASX: EVT) share price has started the week with a day in the red following the release of its full year results.

The entertainment company’s shares ended the day 2.5% lower at $8.13.

How did Event perform in FY 2020?

It was a difficult year for Event due to the significant disruption its businesses faced because the pandemic.

For the 12 months ended 30 June 2002, the company reported a 22.3% decline in revenue to $784 million and a 54.2% drop in normalised earnings before interest, tax, depreciation and amortisation (EBITDA) to $105 million. This includes $34 million in Government subsidies.

Event’s revenue and earnings decline was the result of the last four months of the year, following the outbreak of COVID-19 globally and government-imposed restrictions.

Over the final four months of the financial year, the company’s revenue was down $262 million on the prior corresponding period. Prior to then, revenue had been up 2.5% year to date.

Things were even worse on the bottom line, with Event reporting a 78.5% decline in normalised profit before interest and tax (EBIT) and a statutory net loss after tax of $11.4 million.

The company’s result includes $54 million of individually significant items net of tax, the majority of which were non-cash items.

In light of this profit decline, no final dividend was declared for FY 2020.

“Unprecedented external factors.”

The company’s CEO, Jane Hastings, commented: “The year was impacted by the most unprecedented external factors experienced in the Group’s 110-year history, including bushfires, floods and COVID-19 government-mandated restrictions.”

“Despite the impact of bushfires we achieved strong performance prior to the COVID-19 period with revenue up 2.5%, EBITDA up 1.7% and normalised profit up 2.2% in the eight months ended February 2020 on an adjusted basis. This was the second highest EBITDA result for the period from July to February from continuing operations in the Group’s history,” she added.

Event’s result could have been far worse. The chief executive revealed that the company has managed to make significant cost-savings during the pandemic.

Hasting explained: “The final four months of the year was defined by the impact of COVID-19 government mandated restrictions which immediately impacted revenue, down $262 million for the four month period. We immediately adapted with new operating models by division, reflecting the various government COVID-19 restrictions and plan for potential financial scenarios.”

“This planning has enabled the Group to pivot at short-notice and achieve $140 million in cost reduction including government subsidies, excluding the benefit of negotiated rent relief which will be recognised once agreements have been signed. We are well prepared and some of the changes are expected to deliver lasting benefits for the future,” the chief executive added.

Outlook.

Unsurprisingly, no guidance has been provided due to the uncertain environment.

Though, management notes that there is a backlog of strong future films waiting to be released. This is expected to support its Entertainment business once trading conditions return to normal.

The company’s Hotel business is not expected to return to pre-COVID-19 levels until international tourism resumes. Until then, occupancy levels of 50% to 60% will be required for its hotels to be profitable.

Finally, thanks to a revision to its operating model, the Thredbo business is expected to be profitable, subject to weather conditions.

More reading

• Rumble Resources share price up 9% on acquisition news
• 3 ASX shares I’d buy if the share market crashes again
• 2 ASX shares I would buy right now for both growth and income
• The Mosaic Brands share price surges 21% on lease deal
• Are ASX banks or miners buys for dividends?

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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My favourite type of ASX share to own is the one that can give me both growth and income through dividends. These shares are rare, but lucrative and can help you build wealth as an investor very effectively.

2020 has been a tough year for dividend shares in particular, with the ASX banks and other former dividend stars forced to cut their payouts, sometimes substantially. Therefore, I think finding the companies that can grow as well as fund a growing dividend is especially important this year. So here are 2 shares that I think fall into this category, and are (in my view) primed to provide shareholders with both growth and income well into the future.

1) CSL Limited (ASX: CSL)

Backtrack to last year and CSL shares were the talk of the town. The CSL share price rose almost 50% in 2019 alone and made a new all-time high of $342.75 earlier this year. But since then, CSL has drifted off the radar for many ASX investors. Evident by how CSL shares have been stuck in a rut since May. Today’s share price of $287.50 (at the time of writing) is pretty much where CSL shares were at the start of the year. Even the company’s impressive FY2020 earnings report wasn’t enough to pull CSL shares out of this rut for long. But that’s why I think CSL could be a great buying opportunity today for both growth and income.

Despite its massive size, CSL told investors it expected revenue growth of 8-10% over Fy2021. And CSL has recently bumped up its final dividend by 17%, which continues a long track record of dividend growth. I fully expect these trends to continue over the next few years at least. Thus, I think CSL is a top ASX share for growth and income today.

2) WAM Global Ltd (ASX: WGB)

WAM Global is a Listed Investment Company (LIC) that focuses on buying internationally-listed growth shares. It only started life back in 2018, but since then has developed a strong track record of paying dividends. The company’s modus operandi involved buying internationally-listed growth shares which its management believe are poised to benefit from a pricing catalyst. Some of its current top holdings (as of 31 July) include Microsoft, Tencent Holdings, Intuit and EA Games. When this catalyst is realised, the shares are sold and profits banked. Dividends are then paid out of this profit reserve.

WAM Global recently announced a 4 cents per share final dividend, which was a 100% increase from FY19’s final payout. If the company keeps this divided growth rate up, it will be a highly lucrative income share to own in just a few years. This is likely in my view as well, seeing as the company currently has a profit reserve of 30.1 cents per share. Thus, I think it’s another top pick for both growth and income today.

More reading

• Where to invest $20,000 into ASX shares immediately
• Will the CSL share price return to its all-time high?
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• My top 5 ASX shares to buy in 2020
• 2 great ASX shares I’d buy for income and growth

Sebastian Bowen owns shares of WAMGLOBAL FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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The Mosaic Brands Ltd (ASX: MOZ) share price is up 20.8% in late afternoon trading today. Meanwhile the All Ordinaries Index (ASX: XAO) has a more meagre 0.1% intraday gain.

Mosaic’s huge daily share price gain follows an ASX announcement this morning that it had reached successful lease negotiations with Scentre Group (ASX: SCG). Scentre’s share price is up 3.2% at time of writing.

Despite the welcome boost, the fashion retailer has a long way to go before recouping all of its 2020 share price losses. As you’d expect, the COVID-19 pandemic is to blame, crashing the Mosaic Brands share price down 65% from 16 February to 24 March.

After today’s strong rally, however, Mosaic’s share price is now up 56% from the March low.

Mosaic Brands – formerly Noni B Limited – is the largest specialty fashion retailer group in Australia. Brands include Noni B, Millers, Rockmans, Katies, Rivers, Autograph, Crossroads and Beme, among others. Mosaic’s shares began trading on the ASX in 2000 and the company now almost 1,400 stores across Australia.

Why is the Mosaic Brands share price surging?

Like the majority of retailers across Australia, and indeed the globe, Mosaic Brands has taken a big revenue hit from store closures and social distancing measures during the coronavirus pandemic.

Mosaic has been negotiating rental terms with landlord Scentre Group. This morning, it announced that after reaching a successful outcome in negotiations, all of its stores in Westfield shopping centres have reopened, with the exception of Victoria. Mosaic’s stores in Victoria are still closed until the stage 3 and 4 restrictions are lifted.

Mosaic Brands chair Richard Facioni said:

We’re pleased to have reopened our Westfield stores over the weekend following a mutually agreeable outcome to our negotiations with Scentre Group. Our Victorian stores remain temporarily closed for health and safety reasons. We look forward to reopening those stores as soon as it is safe for our team and customers to do so.

We have had a long-standing relationship with Westfield, enabling us to reach a solution that worked for both parties. This is a good outcome for Mosaic and, in particular, the 400 affected team members. As we noted last week, shuttered stores work for no one.

The commercial terms of the new agreement with Scentre remain confidential.

Mosaic is continuing to negotiate with landlords across Australia for viable lease terms that take into account the viral-induced shift the company has experienced in the retail rental market. Mosaic is working to minimise future store closings, but still foresees the potential shuttering of 300-500 of its stores over the next 1-2 years.

After today’s surge, Mosaic’s share price will be one to watch heading into September.

More reading

• Optimists 1, Pessimists 0
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• ASX giants say cutting staff hours will save jobs
• New research sheds light on consumer spending outlook
• Mosaic Brands share price crashes on FY20 results

Motley Fool contributor Bernd Struben 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.

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It’s getting harder for income investors to find the right investments to generate income. Are ASX banks or miners buys for dividends?

There are plenty of different options to consider for dividends on the ASX.

Major ASX banks have been favoured income options for a long time. Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) were common features in a blue chip dividend portfolio.

Regional banks like Bank of Queensland Limited (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), MyState Limited (ASX: MYS) and Suncorp Group Ltd (ASX: SUN) were also picks for historically high income yields.

There are plenty of miners with reputations of being big dividend payers like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

But are they good buys today?

The best time to buy cyclical businesses like miners is at the bottom of the cycle. The demand and price of iron ore from China has been strong for a few years now. That’s why Fortescue has been one of the best performers in the ASX 50 over the past year with a total shareholder return of 174.5% (according to CMC).

Miners could be the best candidates for income over the next 12 months. 

Using the 2020 dividend payments, Fortescue has a grossed-up yield of 14.5%. BHP has a grossed-up yield of 6.6%. Rio Tinto has a grossed-up yield of 8.25%.

Fortescue clearly has the biggest yield, though it has just gone ex-dividend so you’ll have to wait another six months for the next dividend payment.

But if you’re focused on total returns then I’m not sure the (iron ore) miners are worth buying today. Though gold miners could be an interesting idea to consider. 

Banks are facing a lot of economic difficulties when it comes to COVID-19. Large credit provisions and conservative dividend payout expectations by APRA are causing the banks to significantly reduce their dividends. CBA’s final FY20 dividend was just $0.98 per share. Westpac decided not to pay any interim dividend.

I think that there are some ASX 20 dividend shares that could be worth buying such as Macquarie Group Ltd (ASX: MQG) and Wesfarmers Ltd (ASX: WES). Whilst they have also suffered due to COVID-19, their dividend payouts look much better compared to the big banks bearing in mind the share prices of Macquarie and Wesfarmers have recovered more strongly.

Other ASX dividend shares I’d rather buy

One of the negatives about investing in the ASX’s blue chips is that many of them don’t actually have strong growth prospects. They have already become the biggest businesses in the industry. They can’t really grow at a fast pace any more. 

A business like CSL Limited (ASX: CSL) still has plenty of growth potential, but it’s not known as an income share.

But there are smaller businesses out there with a more reliable dividend. These smaller ASX shares have more growth potential, which means their profit and dividends can grow much more over the next decade as well.

For income, I’d be interested in names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), diversified property business Brickworks Limited (ASX: BKW), farmland real estate investment trust (REIT) Rural Funds Group (ASX: RFF) and listed investment company (LIC) WAM Microcap Ltd (ASX: WMI). Most of them are in my portfolio. 

The above ideas may not have a huge dividend yield like Fortescue, but I believe they could be more reliable over the long-term. For example, Soul Patts has increased its dividend every year for the past two decades and Brickworks hasn’t cut its dividend for over 40 years. WAM Microcap is also attractive for its regular payment of special dividends.

More reading

• Bank analyst tells investors to ‘stay away’ from ASX bank shares
• Why Fortescue, Openpay, Pointsbet, & Sezzle shares are dropping lower
• Why I’d buy Wesfarmers and 1 other quality ASX dividend right now
• ASX 200 edges higher: Fortescue sinks, NAB sells MLC Wealth, Costa jumps
• This is the ASX share I’d buy this week

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. 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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At the weekend I looked at how $20,000 investments fared in a number of popular ASX shares over the last 10 years. You can read about their impressive returns here.

But that was then and this is now. Which shares should you invest $20,000 into today?

I have picked out two ASX shares that I think could be great places to invest these funds:

Appen Ltd (ASX: APX)

The first ASX share to consider investing $20,000 into is Appen. It is the leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Through its million-strong crowd-sourced team of experts, it prepares the data for the models of some of the world’s biggest tech companies. This includes the likes of Amazon, Apple, Microsoft, and Facebook.

Pleasingly, demand for AI services is expected to grow strongly over the next decade as companies invest heavily in the space. I believe this bodes well for Appen and expect it to underpin strong earnings growth over the next decade and beyond. In light of this, I believe the Appen share price could be a market beater over the next decade.

CSL Limited (ASX: CSL)

I think this biotherapeutics giant CSL would be a great option for a long term $20,000 investment. This is due to its very positive outlook thanks to its high quality CSL Behring and Seqirus businesses. I believe these businesses are well-placed to underpin consistently solid sales and earnings growth over the 2020s.

This is thanks to their leading products and extremely lucrative research and development (R&D) pipelines. In respect to the latter, in FY 2020 CSL invested a massive US$922 million into its R&D activities. This was an increase on US$832 million a year earlier and in line with its normal investment of ~10% to 11% of revenue. I believe these investments will allow the company to maintain its market-leading position for a long time to come. As a result, I expect the CSL share price to continue its positive run for the foreseeable future.

More reading

• Will the CSL share price return to its all-time high?
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• 3 of the best ASX tech shares to buy in September
• Top brokers name 3 ASX shares to buy next week
• These were the worst performing ASX 200 shares last week

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 CSL Ltd. The Motley Fool Australia owns shares of Appen 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 Where to invest $20,000 into ASX shares immediately appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Zoom Video Communications Inc (NASDAQ: ZM) is slated to report its second quarter results for fiscal 2021 after the market close today.

Investor expectations are sky-high. Investors have driven shares of the unified-communications platform provider up 43.8% since its first quarter results were released on 2 June. The S&P 500 has returned 14.3% over this period. In 2020, Zoom stock is up 340%, while the broader market has returned 10%.

Zoom has been getting a hurricane-force tailwind from the increased number of people working – along with learning and socializing – from their homes due to the COVID-19 pandemic. 

Zoom Video’s key numbers

Here are Zoom’s results for the year-ago period and Wall Street’s estimates to use as benchmarks.

Metric	Fiscal Q2 2020 Result	Fiscal Q2 2021 Wall Street Consensus Estimate	Projected Growth YOY
Revenue	$145.8 million	$500.5 million	243%
Adjusted earnings per share (EPS)	$0.08	$0.45	463%

Data sources: Zoom Video Communications and Yahoo! Finance. YOY = year over year. 

Zoom management guided for revenue between $495 million and $500 million, representing growth of 241% growth year over year at the midpoint. It also expects adjusted earnings per share (EPS) to be between $0.44 and $0.46, representing growth of 463% year over year at the midpoint. 

It’s interesting that Wall Street is essentially “only” using Zoom’s guidance as its estimates. Companies nearly always are conservative in setting guidance, especially companies whose stock prices sport nosebleed valuations. Analysts know this, so often adjust their estimates upward of a company’s guidance, or guidance range. (That said, Wall Street did a terrible job last quarter projecting the company’s top- and bottom-line results, as we’ll get to in a moment, so perhaps this isn’t too surprising.) 

It seems highly likely that Zoom will beat the Street’s expectations on both the top and bottom lines. If it doesn’t, watch out below for its falling stock. 

For context, in the first quarter, Zoom’s revenue soared 169% year over year to $328.2 million, crushing the $202.5 million Wall Street consensus estimate. To give you an idea of the COVID-19 benefit, in the prior quarter, revenue rose 78% year over year.

Last quarter’s bottom-line results were equally impressive. Net income based on generally accepted accounting principles (GAAP) was $27 million, or $0.09 per share, compared with $0.2 million, or $00.00 per share, in the year-ago quarter. On an adjusted basis, net income came in at $58.3 million, up from $8.9 million in the year-ago period, which translated into EPS skyrocketing 567% to $0.20. This result demolished the $0.09 analysts had expected.

Indeed, Zoom has zoomed by the Street’s earnings estimates in every quarter since its April 2019 initial public offering (IPO).

Guidance, guidance, guidance

Location is of supreme importance in the real estate world. Indeed, the most important factors in a home’s value are widely phrased as “location, location, location”. 

Analogously, a company’s guidance is ultra-important in the world of the stock market. A stock’s reaction to a company’s release of its financial results will often hinge more on guidance, relative to Wall Street’s expectations, than on current results.

So investors will want to know that for the third quarter, analysts are modeling for Zoom to post adjusted EPS of $0.35 on revenue of $492.9 million, representing growth of 289% and 196%, respectively, year over year.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Zoom Video to soon appear on Amazon, Facebook, and Google smart display devices

Beth McKenna 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 Zoom Video Communications. 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 Zoom earnings on Monday: Will they keep the stock’s COVID-fueled surge going? appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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