There are some ASX shares that I’d invest $1,000 into every single month.

I think it’s important to realise that some shares can be very volatile and in some weeks it might not be such a good idea to pay that higher price.

For example, over the past month the Afterpay Ltd (ASX: APT) share price has traded above $58 and below $46. I wouldn’t commit to a consistent investment strategy into a single business like Afterpay when it’s so volatile.

But there are some ASX shares that it could make sense to invest $1,000 into every month, particularly in these coronavirus times. Here are three of those monthly ideas:

Share 1: Vanguard MSCI Index International Shares ETF (ASX: VGS)

I think it’s the easiest to commit to a monthly investment strategy with exchange-traded funds (ETFs). ETFs will always trade at their net asset value (NAV), they’re normally diversified and usually come with low costs.

ASX shares offer good potential investments, but the ASX only represents 2% of the total global share market. We can invest in many of the world’s biggest and best businesses with Vanguard MSCI Index International Shares ETF.

It is invested in over 1,500 businesses across major developed countries such as the US, Japan, the UK and France. Its top holdings are shares like Apple, Microsoft, Amazon, Alphabet, Facebook, Johnson & Johnson, Visa and Nestle.

Despite COVID-19, the ETF has generated returns of 10.3% per annum over the last three years. It has an annual management fee of 0.18% per annum. 

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an interesting business. It’s an investment conglomerate that has been going for over a century. I think it will be around for many decades to come with how it’s set up.

It is invested in a variety of businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Clover Corporation Limited (ASX: CLV), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Magellan Financial Group Ltd (ASX: MFG).

Soul Patts also owns stakes in a variety of unlisted businesses like swimming schools and agriculture.

The ASX share is steadily increasing its diversification and the share price generally tracks its underlying portfolio value. It’s not an ETF, but I think it’s another great option to diversify a portfolio.

Soul Patts has a great dividend record. It has paid a dividend every year in its existence since 1903 and it has grown its dividend each year since 2000.

I’d be happy to invest $1,000 every month into Soul Patts shares every month because it nearly always looks good value to me, has good diversification and offers something very different to a typical ASX share ETF.

Share 3: Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is one of my preferred listed investment companies (LICs).

I like it for three reasons.

The first is that it has good philanthropic credentials. It donates 1% of its net assets each year to youth mental health charities. But there are no management fees or performance fees involved with this LIC. Indeed, there aren’t many costs at all as many services are provided to Future Generation Global for free.

The second reason is Future Generation Global is diversified. It’s an ASX share itself, but it invests in the funds of fund managers who target overseas shares. It’s invested with high-quality fund managers like Magellan Financial Group Ltd (ASX: MFG). Each fund represents a whole portfolio of shares, so Future Generation Global could be invested in many dozens of different non-ASX shares.

The third reason is that it looks great value. At the moment the share price is trading at a 21% discount to the May 2020 pre-tax net tangible assets (NTA). That’s despite Future Generation Global’s portfolio outperforming the MSCI AC World Index (AUD) over the past month, six months, year, three years and since inception in September 2015.

Foolish takeaway

I’d be very happy to invest $1,000 a month into each of these ASX shares. Future Generation Global definitely looks like the best value with the big NTA discount. But Soul Patts could be the most reliable over the long-term.

More reading

• 2 ASX shares I plan to hold til I’m 100
• 3 dividend shares I’d buy to boost my income
• 3 long-term ASX 200 shares I’d buy right now
• 3 ASX shares I think are super cheap right now
• What are the best ASX shares for dividends?

The post 3 ASX shares that I’d invest $1,000 into EVERY month appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2zZkm8I

The Afterpay Ltd (ASX: APT) share price will be one to watch on Wednesday following a late announcement by the payment company.

What did Afterpay announce?

After the market close on Tuesday, Afterpay provided investors with an update on the progress it has been making in the UK market.

According to the release, the company’s UK-based Clearpay business now has over 1 million active customers using its platform after one year in the country.

In addition to this, management revealed that its customer purchasing frequency in the UK is outpacing the United States, when compared to the same stage of lifecycle. At the end of the first year, its UK customers are transacting more than 8 times per year. This compares to six times at the same stage in the United States.

This makes Clearpay one of the fastest growing ecommerce payment companies in the European market.

In addition to this, there are more than 1,100 brands and retailers offering, or in the process of offering Clearpay to their customers. Recent additions include Elemis, Bare Minerals, and ISAWITFIRST. They join the likes of ASOS, Marks & Spencers, JD Sports, Urban Outfitters, and Boohoo on its platform.

Strong growth.

As with its ANZ and US business, Clearpay has been a particularly strong performer during the COVID-19 crisis.

Management notes that during the COVID-19 period, it has experienced a strong customer adoption rate in the UK.

In May 2020, Clearpay had more than 3 million app and site visits, and its Shop Directory contributed over 1.5 million lead referrals to its retail partners. This represents a 40% to 50% increase in the weekly run rate from January and February.

Afterpay co-founder, Nick Molnar, appeared to be pleased with the progress the company is making in the UK.

He commented: “The world and the industry are changing at a rapid pace, and during this challenging time consumers are looking for ways to pay using their own money – instead of turning to expensive loans with interest, fees or revolving debt.”

“We applaud our U.K. merchants who support the payment needs of British shoppers – especially as we head into a ‘new normal’ for retail,” he added.

More reading

• Afterpay share price up 550% since February. Is it too late to buy?
• Is the Afterpay share price a boom or a bubble?
• How to try and beat the market with ASX shares
• Afterpay and 2 more ASX 200 shares to watch this week
• These 5 ASX shares were last week’s top performers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Afterpay share price on watch after reaching 1 million UK customers appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YnD3fI

If you’re a retiree looking to invest in dividend shares, then I think the three listed below would be great options.

This is because, despite these uncertain times, these companies look well-placed to continue paying their dividends as normal. Here’s why I would buy them for income:

BWP Trust (ASX: BWP)

I think BWP is a safe and strong dividend share to buy. I really like the real estate investment trust due to the quality of its portfolio and the fact that the majority of its properties are leased to home improvement giant Bunnings Warehouse. I believe Bunnings is one of the best retailers in the country and the risk of store closures and rental defaults is extremely low. Combined with periodic rental increases, I believe BWP is well-positioned to deliver consistent income and distribution growth over the next decade. At present I estimate that its units offer a forward 4.8% yield.

Rural Funds Group (ASX: RFF)

Another dividend share which I think is a safe option for income investors is Rural Funds. Thanks to the quality of its portfolio and its long term tenancy agreements, I believe this agriculture-focused property group is well-positioned to continue growing its distribution during the pandemic and beyond. In fact, Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.4% and 5.65%, respectively.

Telstra Corporation Ltd (ASX: TLS)

A final safe and strong option to consider buying is Telstra. I think the telco giant is a great option for income investors due to its generous yield and defensive qualities. The latter has been on display for all to see in FY 2020, with Telstra one of only a handful of companies that has been able to reaffirm its guidance during the pandemic. I believe this guidance means the company will be able to maintain its 16 cents per share dividend this year. This equates to a fully franked 5% dividend yield. 

More reading

• 2 ASX shares I plan to hold til I’m 100
• ASX 200 Weekly Wrap: ASX back in the green
• Beat low interest rates with Telstra and these ASX dividend shares
• 3 high quality ASX dividend shares for income investors to buy
• What is the price/earnings (p/e) ratio?

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 3 safe and strong ASX dividend shares for retirees to buy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Ypiijv

The S&P/ASX 200 Index (ASX: XJO) rose by 0.2% today to 5,954 points.

Earlier in the day there were fears that a potential trade deal between the US and China was off the table. But President Trump soon confirmed on Twitter that wasn’t the case.

Woolworths Group Ltd (ASX: WOW) profit hasn’t grown like its sales

Woolworths announced a number of things today in an update to the market. The Woolworths share price declined around 0.75%.

The ASX 200 supermarket business said that for FY20 it expects to report earnings before interest and tax (EBIT) (post AASB 16 and before significant items) of between $3.2 billion to $3.25 billion. On a comparable basis, FY19’s EBIT was $3.29 billion.

A sizeable part of the disappointing EBIT was the fact that the hotels division is still losing money due to COVID-19 restrictions. FY20 Hotels EBIT is expected to be $160 million to $170 million, compared to $355 million in FY19.

The FY20 fourth quarter sales growth for the ASX 200 business was more impressive. In the 10 weeks to 14 June 2020, Australian food sales grew by 8.6%, New Zealand food sales grew by 15.1%, Big W sales grew by 27.8% and Endeavour Drinks sales grew by 21.4%.

Woolworths plans to transform its NSW grocery supply chain network by developing an automated regional distribution centre and a semi-automated national distribution centre at Moorebank Logistics Park in Sydney. Woolworths will invest $700 million to $780 million in the technology and fitout of the two distribution centres over the next four years and it has signed an initial lease term of 20 years with Qube Holdings Ltd (ASX: QUB). The Qube share price went up 7.8% today.

The decision to carry out this supply chain investment will result in a one-off pre-tax cost of $176 million. This will be counted as a significant item in FY20. The other significant items for FY20 include $230 million for Endeavour Group transformation costs and $185 million for salaried store team member remediation.

Western Areas Ltd (ASX: WSA) share price surges

The share price of ASX 200 resource business Western Areas jumped 16%.

Western Areas announced today it had some highly encouraging results from the first diamond drill hole at the Sahara prospect within the Western Gawler Project in South Australia. It has intersected over 200m of nickel and copper bearing sulphides.

There is an average of 2% to 5% of sulphide content across the entire intrusive body.

Western Areas managing director Dan Lougher said: “This is an excellent result from our first drill hole at the Sahara prospect, intercepting broad widths of nickel and copper bearing mineralisation. We keenly await the assay results, but it is already clear from what we have seen in the drill core, that we have a significant exploration result that merits immediate follow up work.”

Cromwell Property Group (ASX: CMW) share price rises 8%

The Cromwell share price rose 8% to $0.94 today as news came of a proportional takeover offer from large shareholder ARA Asset Management.

ARA has made an off-market offer to acquire 29% of all Cromwell shares not currently owned by ARA for $0.90 per stapled security.

The ASX 200 share’s leadership has advised shareholders to take no action, stating that the offer was unsolicited and opportunistic in nature.

The offer is a 3.4% premium to the last closing price of $0.87. It’s also a 9.8% premium to the 30-day volume weighted average price of $0.82.

AMP Limited (ASX: AMP) finally deliver some good news

Embattled ASX 200 financial services business AMO announced today that the sale of AMP Life to Resolution Life has received all regulatory approvals and confirmed it expects the transaction to complete after the market closes on 30 June 2020.

AMP said it will provide an update to the market on 1 July 2020.

The AMP share price rose by around 8% today.

Challenger Ltd (ASX: CGF) share price drops almost 10%

The ASX 200 annuity business came back to trade after completing the institutional part of its capital raising.

The 55 million new shares were raised at a price of $4.89 per share. This was an 8.1% discount to the last traded price. The placement was “significantly oversubscribed”.

Managing director and CEO Richard Howes said: “We are very pleased with the strong support shown by institutional shareholders for Challenger’s commitment to maintaining a strong capital position while at the same time providing flexibility to enhance earnings.

“This raise supports the business to remain strongly capitalised through this period of ongoing market uncertainty.”

More reading

• Invest like Warren Buffett by buying and holding these ASX 200 shares
• Fund managers have been buying these ASX shares
• Why James Hardie is a favourite buy among leading brokers
• Why top brokers are urging you to buy SEEK and these other ASX stocks today
• Why the AMP share price is up 9% today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. 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 ASX 200 finishes higher, Woolworths gives update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2NooAJW

The Strategic Elements Ltd (ASX: SOR) share price was a standout performer on the market today as investors reacted to multiple patent application filings.

After jumping as much as 41.82% in morning trade, Strategic Elements shares finished 18.18% higher at 6.5 cents apiece.

Strategic Elements is an ASX-listed pooled development fund, which is a Federal Government program designed to increase investment into Australian small and medium-size enterprises by providing tax incentives.

Strategic Elements operates as a ‘venture builder’, where it generates ventures and projects from combining teams of scientists or innovators in the technology or resources sectors.

What did Strategic Elements announce?

This morning, Strategic Elements announced it has filed three patents over autonomous robotics technology being developed by one of its subsidiaries, Stealth Technologies.

Stealth Technologies is an artificial intelligence and robotics company that develops advanced solutions in autonomous driving and robotic automation.

Notably, Stealth has been collaborating with the US$100 billion industrial conglomerate Honeywell to develop an autonomous robotic security vehicle for the correctional justice sector.

According to today’s release, Stealth’s use of 3D printing technologies is enabling the rapid advancement of intellectual property and prototyping.

Two of the patent applications announced today cover low-cost solutions developed by Stealth that reportedly increase reliability and mitigate against system failures in autonomous robotic vehicles.

The third patent application covers robots designed to automate perimeter security intrusion detection systems.

Strategic Elements believes the intellectual property covered by these patents has potential commercial use in security, mining and agriculture.

About the Honeywell collaboration

Stealth Technologies’ agreement with Honeywell was announced in September 2019. It will see Stealth collaborate exclusively with Honeywell to develop and pursue opportunities for autonomous robotic vehicles for a term of 12 months.

This collaboration has led to the development of an autonomous security vehicle (ASV) for the correctional sector. The vehicle has been designed for rugged and remote environments, is fully electric, and is able to operate autonomously all day and night.

Final validation and acceptance testing for the ASV will begin in Q3 2020. Meanwhile, Stealth is investigating the potential use of the ASV in other applications.

Under the agreement with Honeywell, Stealth can market the ASV independently to sectors such as transport, energy, defence, government, and utilities.

After today’s rise, Strategic Elements has a current market capitalisation of around $19 million. If you’d rather invest in much larger and more liquid companies, check out the top ASX growth shares in the free report below.

More reading

• 3 safe and strong ASX dividend shares for retirees to buy
• ASX 200 finishes higher, Woolworths gives update
• Invest like Warren Buffett by buying and holding these ASX 200 shares
• ASX stock of the day: Smartpay share price jumps 18% on FY20 results
• Where to invest $500 into ASX shares right now

Motley Fool contributor Cathryn Goh 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 Why the Strategic Elements share price surged 18% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2NoXqTr

One of the most successful investors in history has been Warren Buffett.

He has managed to beat the market over countless decades thanks to some reasonably simple investment strategies.

One of these is buying shares and holding onto them for long periods of time and only selling them if the investment thesis is broken.

The good news is that this strategy is easy to replicate and there are plenty of candidates for investors to choose from on the Australian share market. 

Two shares that I think are perfect to build your wealth with are listed below. Here’s why I think they are great buy and hold options:

Altium Limited (ASX: ALU)

Altium is the software company behind the Altium Designer platform. This is an award-winning printed circuit board design software platform which has been experiencing very strong demand thanks to the rapidly growing Internet of Things market. Unfortunately, the pandemic has disrupted its growth in FY 2020, but I’m confident this is just a short term headwind which will ease in the coming months.

In light of this and the forecast growth of the Internet of Things market, I believe Altium is well-positioned for strong long term growth. Especially given that its other businesses, such as Octopart and Nexus, also have the potential to grow strongly over the next decade. This could make it well worth taking advantage of the recent pullback in its share price to invest at more attractive price.

CSL Limited (ASX: CSL)

Another share to consider as a buy and hold option is CSL. I think the biotherapeutics giant is the highest quality company on the local share market due to its world class CSL Behring and Seqirus businesses and their portfolio of life-saving therapies and vaccines.

Another reason I’m a big fan of CSL is its high level of investment in research and development (R&D). The company consistently invests somewhere in the region of 10% of its sales into R&D activities. This has been a successful strategy which has cemented its position as an industry leader and filled its pipeline with a number of therapies that have the potential to generate billions of dollars of sales over the next decade.

More reading

• ASX 200 finishes higher, Woolworths gives update
• Why James Hardie is a favourite buy among leading brokers
• Why top brokers are urging you to buy SEEK and these other ASX stocks today
• Why the AMP share price is up 9% today
• Leading fund manager names 3 undervalued Chinese shares to buy

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 Altium and 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.

The post Invest like Warren Buffett by buying and holding these ASX 200 shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2CrftWI

The Smartpay Holdings Ltd (ASX: SMP) share price is up 18% today after the EFTPOS provider released its FY20 results. Smartpay saw a 34% increase in revenue over the year as a result of strong growth in Australia. 

What does Smartpay do? 

Smartpay is the largest independently owned and operated EFTPOS provider in Australasia. Having operating in Australia for nearly 10 years, Smartpay has supplied over 35,000 EFTPOS machines to over 25,000 merchants across Australia and New Zealand. 

Smartpay offers merchants a flat rate for MasterCard, Visa, Alipay, and WeChat pay transactions. Terminal rental fees are waived when merchants process a sufficient value of transactions each month. Merchants are offered a choice of flat rates or automated surcharging so they know charges to expect. 

What did Smartpay report?

Smartpay reported full year revenue of $28.3 million, a 34% increase on FY19. The key driver of revenue growth was strong growth in Australian acquiring revenues, which grew by 275% to $9.5 million. This was a result of a significant increase in the Australian terminal fleet, which grew from 2,200 at the start of the period to more than 4,600 at 31 March 2020. 

Monthly acquiring revenues grew from $0.5 million a month to $1 million a month (pre-COVID). In addition to growth in terminal and transaction numbers, Smartpay also saw a steady increase in gross margin per terminal as it refined its pricing and product mix through the year. 

Earnings before interest tax depreciation and amortisation (EBITDA) grew 15% in FY20 to $7.4 million. The lower EBITDA growth rate compared to revenue represents the investment of additional resources into the Australian business. The company reported a loss after tax of $4.4 million, which was largely attributable to non-cash costs related to the valuation of convertible notes on issue. 

What’s next for Smartpay?

Smartpay reports that the cash impacts of COVID-19 have been largely offset thanks to government assistance packages and reductions in its cost base. Transaction volumes have recovered as restrictions have eased and are back to around 95% of pre-COVID levels in Australia. 

The proposed sale of Smartpay’s NZ business was terminated as a result of COVID-19, leaving the company without the expected capital inflow. As a result, Smartpay conducted a capital raise last month. Funds will be used to pursue the company’s growth strategy and significantly reduce debt. Smartpay is expecting a strong performance in the remaining 3 quarters of the financial year. 

More reading

• Where to invest $500 into ASX shares right now
• 2 ASX shares I plan to hold til I’m 100
• Fund managers have been buying these ASX shares
• Why James Hardie is a favourite buy among leading brokers
• These ASX retail shares are lockdown winners

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.

The post ASX stock of the day: Smartpay share price jumps 18% on FY20 results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3erU266

If you are looking to invest $500 into the share market, I believe you should be thinking long term.

This is largely because brokerage costs (which are usually around ~$10 a trade) will eat into your profits if you are constantly buying and selling shares.

With that in mind, here are three top ASX shares which I think could be great options for a $500 investment:

Kogan.com Ltd (ASX: KGN)

A first option for that $500 investment could be this growing ecommerce company. I believe Kogan has the potential to grow materially in the local market thanks to the shift to online shopping, which appears to have accelerated because of the pandemic. At present only ~10% of consumer spending is made online, but this is likely to grow materially over the next couple of decades. With this tailwind in its sails and acquisitions in its sights, the future looks bright for Kogan.

Nearmap Ltd (ASX: NEA)

Another ASX share to consider investing $500 into is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American markets. Although its performance has been a bit shaky over the last 12 months due to customer churn, I remain very confident in its future. This is due to the quality of its software and its strong position in a fragmented market worth an estimated $2.9 billion per year. In addition to this, it has the option to increase its addressable market by expanding into other territories in the future.

Pushpay Holdings Ltd (ASX: PPH)

A third option to consider investing $500 into is this donor management platform provider. Pushpay has been growing its sales at a very strong rate in recent years and look well-positioned to continue this trend in the coming years. The company recently revealed that it is targeting a 50% share of the medium and large church market in the future. This represents a US$1 billion revenue opportunity for Pushpay, which is materially more than the US$127.5 million operating revenue it recorded in FY 2020. I believe it will get there and, thanks to operating leverage, I expect its earnings to grow at an even quicker rate.

More reading

• These ASX retail shares are lockdown winners
• 3 quality ASX growth shares to buy and hold
• Consider these 2 ASX fintech shares before they take off
• Where to invest $10,000 into ASX shares right now
• ASX share price winners and losers of 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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nearmap 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 $500 into ASX shares right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fMrSD4