If you’re wanting to gain some exposure to the small side of the market, then I think the three small caps listed below would be worth a closer look.

Here’s why I think they have the potential to grow strongly in the future:

Audinate Group Limited (ASX: AD8)

The first small cap share to look at is Audinate. It is a digital audio-visual networking technologies provider which is best known for its innovative Dante product. This award-winning audio over IP networking solution is being used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. Unfortunately, the pandemic has hit its sales incredibly hard this year, which has ultimately weighed heavily on the Audinate share price. I think this could be a buying opportunity and expect demand for its products to increase materially when things return to normal.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap to consider buying is Bigtincan. It is a provider of enterprise mobility software which allows sales and service organisations to increase their sales win rates and reduce costs. Its platform has been attracting a lot of attention from some of the world’s biggest companies, which has supported very strong recurring revenue growth. Over the last year or so, Bigtincan has signed agreements with sports giant Nike, global beauty retailer Sephora, and energy drink Red Bull. I believe this is a testament to the quality of its product and feel that it bodes well for its performance in the coming years.

Whispir (ASX: WSP)

A final small cap share to look at is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir’s industry-leading software platform allows companies to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. This means companies can make their operations more efficient and cut down the number of service desk support calls. As with Bigtincan, it counts a number of blue chips as customers. This includes companies such as AIA Insurance, Disney, and Foxtel.

More reading

• Deepening partnership with Telstra fails to excite the Dubber share price
• 3 top ASX tech shares to buy right now
• Why Sezzle and these ASX shares recorded huge gains in July
• Top ASX Stock Picks for August 2020
• 3 exciting small cap ASX shares to put on your watchlist immediately

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 and recommends BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO, BIGTINCAN FPO, and Whispir 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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Unfortunately, it looks as though interest rates are going to be staying at these ultra low levels for some time to come. In light of this, I continue to believe the share market is the best place to earn a passive income.

But which ASX dividend shares should you buy this week? Here are two dividend shares I would buy right now:

Dicker Data Ltd (ASX: DDR)

Dicker Data is Australia’s leading distributor of IT hardware, software, cloud, and Internet of Things solutions with over 5,500 reseller partners. Thanks to an increasing number of vendor agreements over recent years, it now distributes a wide suite of products from the world’s leading technology vendors. These include Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, and Microsoft.

Due to a combination of these vendor agreements and the growing demand for information technology products, Dicker Data has delivered consistently solid earnings and dividend growth over the last few years. Pleasingly, this strong form has continued during the pandemic as demand for IT and cloud products increases thanks partly to the work from home initiative. In light of this, management expects to increase its fully franked dividend by 31% to 35.5 cents per share in FY 2020. Based on the latest Dicker Data share price, this represents an attractive 4.75% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A second option for income investors to consider buying right now is an exchange traded fund. I think the Vanguard Australian Shares High Yield ETF is a great option due to its focus on high yield shares. The fund is invested in a total of 66 of them, which I believe provides some much-needed diversity. Something which has proved to be very important during the pandemic.

Among its holdings you will find the banks, BHP Group Ltd (ASX: BHP), and Telstra Corporation Ltd (ASX: TLS) to name just a few. Based on the current Vanguard Australian Shares High Yield ETF share price, I estimate that it offers a FY 2021 dividend yield somewhere in the region of 4% to 5%.

More reading

• Cash rate on hold until after 2022? Buy these ASX dividend shares
• 5 things to watch on the ASX 200 next week
• Ready for the “80% stock market crash”?
• 2 safe ASX dividend shares to buy in uncertain times
• The latest ASX 200 stocks downgraded by top brokers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited 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.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week with a day in the red. The benchmark index fell 0.6% to 6,004.8 points.

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

ASX 200 expected to charge higher.

The ASX 200 looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points or 0.7% higher on Monday. This is despite it being a reasonably subdued finish to the week on Wall Street. On Friday the Dow Jones rose 0.2%, the S&P 500 edged slightly higher, and the Nasdaq index fell 0.9%.

Oil prices sink lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices pulled back. According to Bloomberg, on Friday night the WTI crude oil price fell 1.7% to US$41.22 a barrel and the Brent crude oil price dropped 1.5% to US$44.40 a barrel. Demand concerns weighed heavily on prices.

GPT half year result

The GPT Group (ASX: GPT) share price will be on watch when the real estate investment trust releases its half year result this morning. GPT owns a wide collection of properties including 12 retail centres such as Westfield Penrith and Melbourne Central. Investors will be interested to see what damage the pandemic has had on their valuations. According to CommSec, the market expects a profit of $264 million and an interim 11 cents per share dividend.

Gold price pulls back.

It could be a difficult start to the week for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Monday. A rebound in the U.S. dollar put significant pressure on the gold price on Friday night. According to CNBC, the spot gold price fell 2% to US$2,028 an ounce.

IDP Education given buy rating.

Analysts at Goldman Sachs believe the IDP Education Ltd (ASX: IEL) share price can go a lot higher from here. The broker has put a buy rating and $17.00 price target on this student placement and language testing company. According to the note, Goldman acknowledges that near-term uncertainty is likely to persist, but it continues to see the longer-term structural growth profile of international education remaining robust.

More reading

• Does it ever make sense to access your super early?
• Is this the right time to be investing in the share market?
• 5 things to watch on the ASX 200 next week
• Why it’s a good time to buy and hold ASX shares
• These were the best 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 Idp Education Pty Ltd. The Motley Fool Australia has recommended REA 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.

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