It has been another disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is down 1.5% to 5,321.5 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

The Commonwealth Bank of Australia (ASX: CBA) share price is up 1% to $60.34. This follows the release of the banking giant’s third quarter update this morning. Commonwealth Bank delivered cash net profit from continuing operations of $1.3 billion during the quarter. This was a 41% reduction on the average quarterly cash net profit it achieved in the first half. The main drag on its result was an additional credit provision of $1.5 billion for the potential longer term impacts of COVID-19. This may have been lower than many were expecting.

The CSR Limited (ASX: CSR) share price is up a further 1% to $3.76. The building products company’s shares have been pushing higher since the release of its full year results on Tuesday. Although CSR delivered a 25.8% decline in underlying net profit to $134.8 million, this was better than the market was expecting. In addition to this, CSR revealed that trading conditions have been relatively steady during the first six weeks of FY 2021.

The Fortescue Metals Group Limited (ASX: FMG) share price has climbed over 1% to $11.85. The catalyst for this appears to have been a rise in the iron ore price overnight. According to Commsec, the spot iron ore price rose by a decent 1.3% to US$86.69 a tonne.

The Northern Star Resources Ltd (ASX: NST) share price has pushed 2% higher to $13.43. Investors have been buying Northern Star and other gold miners today due to the broad market selloff and a rise in the price of the precious metal. At the time of writing the S&P/ASX All Ordinaries Gold index is up by a solid 1.1%.

More reading

• Safe dividend stocks to buy today for the COVID-19 world
• Commonwealth Bank reveals $1.5 billion COVID-19 provision with Q3 result
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops over 1% at the market close
• 3 ways to pay off your mortgage faster

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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The rental war between landlords and retailers has gathered pace as Premier Investments Limited (ASX: PMV) became the latest retailer to reopen stores. But the retailer, which is Australia’s biggest retail tenant, says it will pay rent based on a proportion of gross sales.

ASX retail shares seek rent relief 

Premier Investments is among a plethora of Australian retail shares that have sought rent relief during the coronavirus pandemic. Accent Group Ltd (ASX: AX1) is also seeking for rent to be calculated by reference to a percentage of sales. 

Premier Investments has said it’s prepared to walk away from stores if landlords don’t play ball. Around 70% of Premier’s leases are due to expire in 2020 or are already in holdover. The company has refused to pay rent since it shut its stores in March, although it announced the reopening of stores from Friday. 

Premier Investments experienced a 74% fall in sales in the 6 weeks to 6 May. Retail store sales were down 99%, however, online sales have increased by 99%. Accent Group has also seen a surge in online sales which quadrupled in the period during which stores were closed. 

Accent Group has concluded successful rental negotiations with landlords of more than 100 stores, but says if it is unable to achieve an outcome it considers fair it will close stores. This has already occurred with one major landlord, with Accent Group giving notice to exit 28 stores at lease expiry over the next 6 months. 

ASX REITs also suffering 

Landlords are not escaping unscathed. This week, Scentre Group (ASX: SCG) said it would not be paying its interim dividend due to uncertainty around the pandemic and the timing of operating cash flows. Customer visitation to the Scentre shopping centres fell to a low of 39% of the previous year’s levels in April and May. 

At Scentre’s properties, 57% of retailers representing 70% of gross lettable area are open, with more retailers to reopen over coming weeks. The shopping centre operator is targeting at least a 25% decrease in centre operating expenses during the pandemic period. 

Vicinity Centres (ASX: VCX) reported that as of 4 May, 50% of stores in its shopping centres were open, representing 65% of gross lettable area. Vicinity withdrew earnings and distribution guidance in March given the uncertainty around the impact of COVID-19 on operations. 

Vicinity is negotiating with retailers whose businesses have experienced a downturn and accelerating temporary arrangements to assist them through the situation. CEO Grant Kelley said, “inevitably, our income at this time is being impacted negatively, however we agree with the Federal Government’s sentiment that landlords and tenants have a shared responsibility to tackle the challenges brought about by these unprecedented times.”

More reading

• ASX 200 drops over 1% at the market close
• Why CSR, Kogan, Premier Investments, & ResMed shares are storming higher
• Premier Investments share price higher after announcing store reopenings and online sales surge
• This ASX REIT just cancelled its interim dividend
• Are ASX retail shares undervalued today?

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Accent Group and 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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The pool of reliable high-yield dividend paying stocks is shrinking!

It’s income investors who depend on regular distributions from their ASX share portfolio who are the biggest losers from the coronavirus pandemic.

You can still find stocks generous defensive dividends if you cared to look, and I think these stocks will outperform the S&P/ASX 200 Index (Index:^AXJO) due to their scarcity.

Growth beating income

It’s easier to find stocks with good growth potential despite COVID-19 than dependable dividend paymasters, in my view.

Look at the tech sector in the US and Australia. The likes of Amazon.com, Inc. (NASDAQ: AMZN) and Afterpay Ltd (ASX: APT) surged to record highs recently.

Meanwhile, the list of ASX stocks suspending or lowering their dividends is growing. We don’t have to mention the big banks like Westpac Banking Corp (ASX: WBC) or Australia and New Zealand Banking GrpLtd (ASX: ANZ). The big hit they took to profits forced them to postpone paying an interim dividend.

Even stocks like CSR Limited (ASX: CSR) which delivered a much better than expected profit result is erring on the side of caution and suspending its payout.

I am not suggesting that turning into a scrooge as we face off what is probably the worst recession in living memory is a bad idea. But some stocks are going from strength to strength, and are offering up an enticing dividend that’s hard to ignore.

Rock solid dividend

One such candidate is iron ore miner BHP Group Ltd (ASX: BHP). I’ve long been overweight on the stock for this reason, and UBS just upgraded the stock to “buy”.

“In our view, BHP is in a strong position with gearing at 17% and net debt of US$12bn,” said the broker.

“This should enable BHP to continue to return surplus cash to shareholders at a time when other more traditional dividend-paying stocks are not.”

BHP is forecast to deliver at least a 5% yield before franking credits.

Perfect package

Another stock that is proving its dividend mantle is AMCOR PLC/IDR UNRESTR (ASX: AMC). The global packaging giant released its quarterly results yesterday, which I believed was a cracker.

JP Morgan shares this view and describes the stock as its top pick in the sector. The highlight was the cost control for Amcor’s Flexibles business (soft plastic packaging).

“We believe that AMC has ample opportunity to grow ahead of peers in the years ahead due to Bemis synergies, efforts on sustainability, further M&A or buy-backs,” said the broker.

“The primary concern we hear from investors relates to top line performance, but if 3Q20 trends can be sustained over the medium term (as management has suggested), we would expect to see a multiple re-rating.”

The stock is yielding around 5% and there’s scope for dividend increases, in my view.

More reading

• Why CBA, CSR, Fortescue, & Northern Star shares are pushing higher
• 2 quality ASX shares to buy for long-term growth
• 3 top ASX 200 shares you can buy on sale today
• Why diversification is important and how to diversify your portfolio with ASX shares
• 3 ASX 200 value plays for an economy hell-bent on recovery

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.

Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, BHP Billiton Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon 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 and has recommended Amcor Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon. 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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