It certainly has been a positive three months for the Macquarie Group Ltd (ASX: MQG) share price.

Since dropping to a multi-year low of $70.45 in March at the height of the pandemic, the investment bank’s shares have recovered strongly.

On Thursday the Macquarie share price closed at $117.19, over 66% higher than its March low.

Why is the Macquarie share price up 66% in three months?

Investors have been buying Macquarie and the big four banks over the last few months on the belief that the economic impact of the pandemic won’t be as bad as first feared.

In addition to this, last month Macquarie released its full year results and revealed that it had a solid 12 months, all things considered.

In FY 2020, the bank reported a net profit of $2,731 million, which was down 8% on the prior corresponding period.

This reflected a high level of asset realisations in FY 2019 and higher impairments in FY 2020 because of the potential economic impacts of the pandemic. Macquarie’s credit and other impairment charges came to $1,040 million in FY 2020, up from $552 million in FY 2019.

Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, commented: “Macquarie’s full-year result has also been subject to the effects of this crisis and a strong underlying financial performance in FY20 was impacted by a material increase in credit and other impairment charges, primarily reflecting the deterioration in current and expected macroeconomic conditions as a result of COVID-19.”

Also supporting its share price was management’s positive comments about the future.

Although Ms Wikramanayake acknowledged that it was a time to be cautious, she believes Macquarie’s conservative approach to capital, funding, and liquidity positions the bank well to respond to the current environment.

She also notes that the longstanding fundamentals that have resulted in Macquarie being profitable every year since inception are unchanged.

This appears to have sparked hopes that the bank will find a way to excel in the current market. Which, considering its history, I wouldn’t bet against.

Should you invest?

While it may not be the bargain buy that it was in March, I still see value in Macquarie’s shares at the current level.

Especially for income investors that are looking for yield in this low interest rate environment. I estimate that its shares offer a partially franked 3.9% FY 2021 dividend yield.

More reading

• These top ASX dividend shares could be great option for income investors
• Add some diversity to your portfolio with these quality ETFs
• Top brokers recommending you buy these ASX shares in this market sell-off
• Why the risk of a market correction for the ASX 200 is rising
• Ready to invest $5,000? I’d buy these ASX dividend shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 The Macquarie Group share price has now soared over 66% since the market bottomed in March 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.

The digital advertising market will recover sooner than many investors currently expect — and Facebook (NASDAQ: FB) stands to profit handsomely.

So says Baird analyst Colin Sebastian. On Thursday, Sebastian reiterated his “Outperform” rating on Facebook’s stock and boosted his target price from $240 to $300. His new target represents potential gains of 27% for investors, based on Facebook’s current share price of $236.

The digital ad market slumped during the early stages of the coronavirus pandemic, when many companies pulled back on their marketing investments. However, with the U.S. and many other countries now working to reopen their economies, Sebastian says advertisers are beginning to ramp up their spending on Facebook and other ad platforms.

“Our latest checks with agencies and advertisers suggest the gradual recovery in digital ad spending continues, benefiting from high user engagement and improving pricing,” Sebastian said. 

Moreover, Sebastian believes the digital ad market will benefit as many businesses shift their operations online at an accelerated pace, due to the COVID-19 crisis.

“While still a far cry from the amazing and historic growth levels in e-commerce, the digital ad market likely emerges stronger from the current environment, and large platforms such as Facebook are well-positioned to capitalize on these trends longer term,” he said. 

Is Facebook’s stock headed to $300?

Yes, I believe it is. Sebastian’s arguments are spot on. Digital ad spending should recover along with the economy, and Facebook stands to benefit from this perhaps more than any other company.

More importantly, a coronavirus-related acceleration in the growth of e-commerce and online entertainment should fuel demand for digital advertising — and, by extension, Facebook’s sales and profits — over the long term. Thus, it’s likely only a matter of time before the social media titan’s stock price surpasses $300 — and it could happen much sooner than many investors currently expect.

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

More reading

• Can these 5 FY20 dogs of ASX 200 bounce back in the new financial year?
• Why MOAT is my favourite ASX ETF
• ASX investors brace to ride the next wave of “irrational exuberance”

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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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.

The post Will Facebook stock surge to $300? 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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One of the biggest appeals of an exchange-traded fund (ETF) investment vehicle is the extremely low fees that many ETFs charge. It’s not uncommon to see a traditionally-managed fund charge a management fee of 1.5%, 2% or even 3%. But ETFs can offer a fraction of these costs. Unless a managed fund can massively outperform every year (which is uncommon), the average investor will often be better with a low-cost ETF.

So with this in mind, I’ve scoured the ASX for the cheapest ETFs out there. Here are 3 that I’ve found:

These 2 ETFs cover US shares

The US market is one of the cheapest markets for investors to gain exposure to, even cheaper than our own ASX.

If you’re after exposure to the S&P 500 (the most popular index in the US), then the cheapest option is the iShares S&P 500 ETF (ASX: IVV). This ETF by iShares charges a management fee of just 0.04% per annum. That’s $4 a year for every $10,000 invested.

If you would like broader exposure to the US markets than the S&P 500, you can look to the Vanguard US Total Markets Shares Index ETF (ASX: VTS). This ETF is even cheaper than iShares with a management fee of just 0.03% per annum. Rather than holding 500 companies like iShares, this Vanguard ETF invests in almost 3,500 individual companies across the US markets.

Regardless of which of these funds you go with, you are still getting heavy exposure to top-weighted American companies like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and Amazon.com, Inc. (NASDAQ: AMZN) with both ETFs.

The cheapest ASX ETF

If you consider yourself a patriot and want to just stick with Australian shares, then I’ve got some bad news. Despite being ‘our local’, ASX-based ETFs are more costly than those covering US shares.

If you want exposure to the largest ASX companies like CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS), then the Betashares Australia 200 ETF (ASX: A200) is your cheapest option. The Betahsares ETF comes with a 0.07% per annum management fee and covers the S&P/ASX 200 Index (INDEXASX: XJO), which includes the largest 200 companies on the ASX.

For broader exposure to Aussie companies, there’s the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF covers the top 300 shares instead of the ASX 200. But this ETF is a little pricier and will set you back 0.1% per annum.

An all-world fund

For true diversification, you could consider Vanguard All-World ex-US Shares Index ETF (ASX: VEU). This fund holds over 3,400 companies from multiple countries (excluding the United States). Japan, China, the United Kingdom, Switzerland and France are the largest contributors, but 39 other countries are also represented here. For all this diversification, VEU only charges a management fee of 0.08% per annum. Not bad if you’re after exotic companies like Alibaba, Nestle, Tencent, Toyota and Samsung.

More reading

• Why I think Telstra and these ASX dividend shares are strong buys
• Could Qube Holdings shares make you rich in 2020?
• 5 things to watch on the ASX 200 on Friday
• In today’s market, should you buy ASX shares, buy gold, or hold cash?
• ASX 200 drops 2.5%, ASX travel shares dumped

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Alphabet (A shares). 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 These are the 4 cheapest ETFs on the ASX appeared first on Motley Fool Australia.

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If you’re looking to boost your income with dividend shares, then you’re in luck.

The Australian share market has a good number of quality options for investors to choose from right now.

But which ones should you buy? Three of my favourite dividend shares are listed below:

BWP Trust (ASX: BWP)

BWP Trust is the largest owner of Bunnings Warehouse sites in Australia. It has a portfolio of 68 stores leased to the hardware giant and seven other retail showrooms. 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 was able to provide a distribution estimate this week. It intends to declare a 9.27 cents per unit final distribution, which will bring its full year distribution to a total of 18.29 cents per unit. This equates to a 4.5% distribution yield.

Rural Funds Group (ASX: RFF)

Another dividend share for income investors to consider buying is Rural Funds. I think the agriculture-focused property group could be a great option due to its high quality property portfolio, periodic rental increases, and its lengthy tenancy agreements. In respect to the latter, at the end of the first half Rural Funds’ weighted average lease expiry stood at 11.5 years. I believe this gives it great visibility with its future earnings. In FY 2021 the company intends to lift its distribution to 11.28 cents per share. This works out to be a forward 5.6% distribution yield.

Telstra Corporation Ltd (ASX: TLS)

I think this telco giant is a great dividend share to buy. I’m a big fan of Telstra due to its improving outlook, defensive business, and generous yield. In respect to the former, I’m confident that a return to growth isn’t too far away thanks to the easing of the NBN headwind, its significant cost cutting program, and the arrival of 5G internet. Positively, in the meantime, I believe Telstra’s free cash flow will be sufficient to maintain its 16 cents per share dividend for the foreseeable future. This represents a fully franked 5.1% dividend yield. 

More reading

• Can 5G help push the Telstra share price higher by 2021?
• Why I would buy CBA and these ASX dividend shares
• 3 robust ASX dividend shares you need to own
• Ready to invest $5,000? I’d buy these ASX dividend shares today
• Why I think the Telstra share price could hit $4 in 2020

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

The post Why I think Telstra and these ASX dividend shares are strong buys appeared first on Motley Fool Australia.

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Every investor is on the lookout for bargain buys right now, but one ASX share that I’m not hearing much about is Qube Holdings Ltd (ASX: QUB).

What does Qube Holdings do?

Qube is Australia’s largest logistics provider and operates as a specialised integrated port services provider across Australia, New Zealand and South East Asia.

Qube has over 130 locations and more than 6,500 employees with a market capitalisation of over $5 billion.

That demonstrates an established (and successful) business to me, but why could Qube shares make you rich in 2020?

Why Qube Holdings shares could be in the buy zone

Part of the reason I’m looking at Qube Holdings shares is due to the coronavirus pandemic.

The shutdowns and border closures related to the pandemic in February and March hit the Qube share price hard.

In fact, the company’s shares went from a 52-week high to a 52-week low in the space of 2 months. In doing so, Qube’s value per share more than halved to just $1.64 per share.

While many S&P/ASX 200 Index (INDEXASX: XJO) constituents fell in that bear market, investors wear particularly bearish on logistics. There were concerns that supply chain disruptions would leave logistics providers like Qube without much business in 2020.

That hasn’t proven to be the case (so far). In fact, Qube Holdings shares have rocketed more than 50% higher since 23 March.

But I think looking at past growth just isn’t a wise strategy. In my mind, Qube has some huge growth potential as a disruptor in the logistics space.

I think Qube could be at the forefront of technological change and automation across Australia. That was highlighted to me by the group’s new warehouse automation project with Woolworths Group Ltd (ASX: WOW).

Woollies and Qube are set to spend at least $1.1 billion on the automated distribution centre in Sydney. Unfortunately, that means jobs are set to go at Woolworths. But what does it mean for Qube?

I think a strong execution on the Woollies facility could send Qube Holdings’ shares climbing higher in 2020. What’s more, it could be just the first of many automation projects that Qube gets involved in if it continues at its current pace.

Foolish takeaway

No one knows what’s ahead for the economy or ASX shares in 2020. However, I like the look of Qube Holdings shares at their current price given what I see as strong growth prospects in the short to medium term.

More reading

• 5 things to watch on the ASX 200 on Friday
• In today’s market, should you buy ASX shares, buy gold, or hold cash?
• ASX 200 drops 2.5%, ASX travel shares dumped
• The BHP share price has jumped 40% higher in the last 3 months
• Top brokers recommending you buy these ASX shares in this market sell-off

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

The post Could Qube Holdings shares make you rich in 2020? appeared first on Motley Fool Australia.

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The Freedom Foods Group Ltd (ASX: FNP) share price won’t be returning to trade any time soon after the diversified food company requested that its shares be suspended for 14 days.

Freedom Foods made the request while it further investigates its financial position following the sudden exit of its CEO and CFO this month.

What is happening at Freedom Foods?

As well as requesting the suspension of its shares, Freedom Foods provided an update on several corporate matters.

One of these was its inventory position. After writing down the carrying value of its inventory at the end of May by $25 million, the company has been further analysing its stock.

The company advised that this analysis suggests the need for further write downs to reflect the provisioning for obsolete stock, out of date stock, and product withdrawals. This is expected to lead to an additional write-down of $35 million, bringing the aggregate inventory write down for FY 2020 to ~$60 million.

Freedom Foods is also looking into inventory held outside the country to see if that needs to be written down.

In addition to this, the company notes that it has become aware that the initial estimate did not include inventory write-offs related to FY 2020 product withdrawals and deletions and accounting matters relating to costs of goods carried forward as a capital item that should have been included as cost of sales. This matter requires further investigation.

Doubtful debts.

Freedom Foods has also been looking into its doubtful debts. It has found that further bad debt provisioning is required and a reversal of prior period revenue recognition will be necessary in FY 2020.

This is expected to impact its EBITDA by approximately $10 million. Though, the company acknowledged that it may also be necessary to include adjustments to the timing of revenue that was reported in prior periods and debtor balances in the balance sheet.

And finally, the company has been looking into its employee share plan and found issues. It expects to incur a charge of $5.9 million after the issue of employee options were not completed.

Foolish Takeaway.

Overall, this is a very surprising and messy situation financially. Shareholders will no doubt be seeking answers to how this was able to happen.

More reading

• 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
• 3 top ASX shares for growth, income, and value investors to buy today
• Can you get rich by investing $5,000 a year into 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.

The post Here’s why the Freedom Foods share price will be suspended for 14 days appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell a sizeable 2.5% to 5,817.7 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rebound strongly.

The ASX 200 looks set to finish the week on a high after a strong night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 69 points or 1.2% higher this morning. On Wall Street the Dow Jones rose 1.2%, the S&P 500 climbed 1.1%, and the Nasdaq index also rose 1.1%.

Bank shares to rise.

It looks likely to be a better day of trade for Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks. This follows a very positive night of trade for U.S. bank stocks, which played a key role in driving the major indices higher. The likes of Bank of America, JPMorgan, Citi, and Wells Fargo all climbed more than 3%.

Oil prices jump.

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher on Friday after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.8% to US$39.09 a barrel and the Brent crude oil price is 3% higher at US$41.50 a barrel. Better than expected U.S. economic data gave oil prices a boost.

Qantas $1.9 billion equity raising.

The Qantas Airways Limited (ASX: QAN) share price could return from its trading halt this morning. The airline operator requested the halt on Thursday while it undertakes a $1.9 billion equity raising. This comprises a $1.4 billion fully underwritten placement to institutional investors and a $500 million share purchase plan. Qantas is raising the funds at $3.65 per share, which represents a 12.9% discount to its last close price.

Gold price largely flat.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price traded mostly flat. According to CNBC, the spot gold price is down ever so slightly to US$1,773.80 an ounce.

More reading

• In today’s market, should you buy ASX shares, buy gold, or hold cash?
• ASX 200 drops 2.5%, ASX travel shares dumped
• The BHP share price has jumped 40% higher in the last 3 months
• Top brokers recommending you buy these ASX shares in this market sell-off
• Transurban Group and 1 other ASX share I’d buy in another share market crash

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.

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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