Stock Pick

  • Replace your term deposit with these ASX dividend shares

    dividend shares

    At present the interest rates on offer with term deposits are at ultra low levels and struggling to keep up with inflation.

    In light of this, I suspect many income investors will be looking for suitable alternatives.

    But where can you turn? I think that ASX dividend shares could be the best way to replace your term deposit if you’re after reliable source of income. Especially given the generous yields on offer with many dividend shares right now.

    Three ASX dividend shares that I would buy are listed below. Here’s why I like them:

    Aventus Group (ASX: AVN)

    The first ASX dividend share I would suggest investors look at is Aventus. Although retail property companies are having a very difficult time during the pandemic, I’m optimistic that Aventus will be less impacted than others. This is because it specialises in large format retail parks and has a total of 20 centres across Australia. Its tenancies have a high weighting towards everyday needs and host high quality retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. I believe this leaves it better positioned than most to ride out the storm. As a result, I estimate that Aventus shares could provide investors with a dividend yield of over 6% for FY 2021.

    Dicker Data Ltd (ASX: DDR)

    Another dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software across the ANZ region. Dicker Data has been a strong performer in FY 2020 and reported stellar growth during its recently completed first half, The company reported half year revenue above $1 billion for the first time and a 30.4% lift in net profit before tax to $42 million. In light of this, the company is on course to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.

    Telstra Corporation Ltd (ASX: TLS)

    A final ASX dividend share to consider buying is this telco giant. I think Telstra is one of the best dividend shares to buy on the ASX right now due to its defensive qualities and positive medium term outlook. Those defensive qualities have been on display for all to see this year. For example, at the height of the pandemic, Telstra was able to reaffirm its guidance for FY 2020. Importantly, this includes its free cash flow guidance for FY 2020. As a result, it appears perfectly positioned to continue paying a 16 cents per share fully franked dividend this year. And looking further ahead, I believe this dividend is sustainable for the foreseeable future thanks to its cost cutting, productivity improvements, and price increases. Based on the current Telstra share price, this dividend equates to an attractive 4.8% yield.

    Where to invest $1,000 right now

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    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    *Returns as of June 30th

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    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. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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  • Top brokers name 3 ASX shares to buy next week

    sign containing the words buy now, asx growth shares

    Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Australia and New Zealand Banking GrpLtd (ASX: ANZ)

    According to a note out of Citi, its analysts have retained their buy rating and $24.75 price target on this banking giant’s shares. While the broker believes that the recent spike in coronavirus cases could mean further loan deferments, it isn’t enough to shift its positive view on the investment opportunity with ANZ’s shares. It continues to see value in its shares at the current level. I agree with Citi on ANZ and would be a buyer of them.

    Coca-Cola Amatil Ltd (ASX: CCL)

    Another note out of Citi reveals that its analysts have retained their buy rating and $9.85 price target on this beverage company’s shares. This follows the release of a trading update by Coca-Cola Amatil last week. It appears pleased with the volume recovery in the ANZ market and suspects volumes could surprise to the upside in the near term. And while it notes that its Indonesian business continues to struggle and has taken an impairment charge, it wasn’t overly surprised by this. While I’m not a huge fan of the company, I do think it could be worth a closer look.

    Tabcorp Holdings Limited (ASX: TAH)

    Analysts at UBS have retained their buy rating and lifted the price target on this gambling company’s shares to $5.00. According to the note, the broker’s research has shown a material increase in digital betting during the pandemic. Its analysts believe that Tabcorp has won a bit of market share thanks to its promotions. It feels this will offset some of the weakness it is experiencing in other parts of the business. Once again, it’s not a share that I’m naturally drawn to, but it could be worth considering.

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    *Extreme Opportunities returns as of June 5th 2020

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    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 Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.

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  • Barron’s Picks And Pans: Crispr, McDonald’s, Nikola And More

    Barron's Picks And Pans: Crispr, McDonald's, Nikola And More* This weekend's Barron's cover story examines the prospects for electric truck makers. * Other featured articles look at companies seeking a cure for sickle cell, risks associated with mortgage REITs and a bubble forming in hydrogen fuel-cell stocks. * Also, the prospects for a troubled California utility, a tobacco pick, a fast-food giant and more.Cover story "Electric Trucks Are the Future. The Stocks Are for the Bold." by Al Root suggests that though speculative fervor has sent shares of electric-truck makers like Nikola Corporation (NASDAQ: NKLA) soaring, competition is stiff and Tesla-like returns may prove elusive.Bill Alpert's "These Companies Are Seeking a Cure for Sickle Cell" points out that successful treatments would demonstrate the potential for gene therapy and boost biotech companies like Crispr Therapeutics AG (NASDAQ: CRSP).In "PG&E Looks Undervalued After Exiting Bankruptcy," Alexandra Scaggs shows why California utility PG&E Corporation (NYSE: PCG) is cheap relative to its peers, but it's difficult to assess how much of its discount is warranted.The Chevron Corporation (NYSE: CVX) acquisition of Noble Energy, Inc. (NASDAQ: NBL) appears to be a one-off, according to "The Pandemic Has Hit Oil Stocks. Chevron's Deal Isn't Enough to Change That" by Avi Salzman.In Bill Alpert's "There's a Bubble Forming in Hydrogen Fuel-Cell Stocks," see why Barron's thinks that stocks of Ballard Power Systems Inc (NASDAQ: BLDP), Plug Power Inc (NASDAQ: PLUG) and other makers of hydrogen fuel cells are in danger of jackknifing.See Also: Is Now The Time To Short Tesla's Stock?"Tobacco and ESG? One Cigarette Maker Sees a Perfect Match" by Jack Hough takes a look at why Philip Morris International Inc. (NYSE: PM), aiming to build a smoke-free future, recasts itself as an ESG (environmental, social and governance) play. Will investors buy it?Companies like Annaly Capital Management, Inc. (NYSE: NLY) use leverage to boost returns, and some have cut dividends due to the pandemic. So says Lawrence C. Strauss's "Mortgage REITs Carry Double-Digit Yields — and the Risks That Come With Such Yields."In "Americans Are Antsy. McDonald's Stock Could Get a Boost From the Drive-Through Window," Ben Levisohn makes a case that hard-hit Mcdonald's Corp (NYSE: MCD) stock could see improvement as Americans get sick of staying at home.See more from Benzinga * Barron's Picks And Pans: Biden, ESG And Reopening Picks * Barron's Picks And Pans: Brunswick, Cloudflare, Gilead And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Pelosi against extra jobless benefits temporary extension

    Pelosi against extra jobless benefits temporary extensionEvercore ISI Head of U.S. Public Policy and Political Strategy Research Sarah Bianchi joins Yahoo Finance’s Akiko Fujita to discuss the latest stimulus negotiations in Congress, as Republicans delay the unveiling of their $1 trillion stimulus plan to next week.

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  • Casino Stock Analyst Says Things Are Going From Bad To Worse In Vegas

    Casino Stock Analyst Says Things Are Going From Bad To Worse In VegasThe initial reopening of the Las Vegas Strip went relatively well for casino operators in early June, but abysmal room rates and a second wave of the COVID-19 outbreak seems to have eliminated hope that the Vegas recovery will continue any time soon.Las Vegas Sands Corp.(NYSE: LVS) management told investors this week that Vegas is suffering "a world of hurt," and the U.S. gaming hub has a long way to go in recovering from its shutdown, according to BofA Securities.The Numbers: Pricing of Las Vegas Strip hotel room rates for the month of August is now down 40% from a year ago. Pricing conditions on the Strip have worsened since June 12 when August rates were down just 31%. September prices are also down 37% year-over-year, suggesting little improvement heading into the fall.Vegas strip operators Las Vegas Sands, MGM Resorts International (NYSE: MGM), Wynn Resorts, Limited (NASDAQ: WYNN) and Caesars Entertainment Corporation (NYSE: CZR) are taking a hit from the plummeting room rates, BofA analyst Shaun Kelley said in a note.Las Vegas Sands recently closed the Palazzo back up for weekday reservations after midweek occupancy levels dropped to 25% or lower."We see little reason to think these operating challenges are exclusive to LVS and we have seen recent furloughs from WYNN in addition to layoffs at the Tropicana and Circus Circus," Kelley said Friday.Bleak Outlook: BofA estimates Las Vegas Sands will take the smallest hit on room rates in August, down 13% compared to a year ago. Kelley said Wynn will take the largest hit, with room rates down 52%.Las Vegas Sands management said this week there is no evidence investors should expect the city's group and convention business to return anytime soon.KAYAK flight search data for Las Vegas is reportedly down 68% from a year ago. Clark County, Nevada reported more than 1,000 new COVID-19 cases on Thursday for the fifth day in the past week.Benzinga's Take: The two biggest questions for Vegas casino stock operators at this point is will reopened casinos stay open and how long will it take for travelers to return?For long-term investors looking to play the recovery, Bank of America has the following ratings and price targets for major Las Vegas casino operators: * Las Vegas Sands, Buy rating and $61 target. * Wynn, Buy rating and $95 target. * MGM Resorts, Underperform rating and $15 target.Related Links:Analyst: End Of Quarantine Restrictions 'Very Positive For Our Macau Stocks'Analyst: 'Trends Are Encouraging' For US Regional CasinosSee more from Benzinga * What Are EV Regulatory Credits And Why Is Tesla Selling So Many Of Them? * This Day In Market History: The Liquidation Of Corporate Fraud ZZZZ Best * Tesla's Valuation Still 'Appears Overcharged' Following Q2 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • SunTrust Likes Chevron, ConocoPhillips, Neutral On Exxon

    SunTrust Likes Chevron, ConocoPhillips, Neutral On ExxonSunTrust Robinson Humphrey analysts initiated coverage of the three major U.S.-based oil giants but suggested only two should be bought by investors.The Analyst: Welles Fitzpatrick initiated coverage of the following three stocks: * Chevron Corporation (NYSE: CVX) at Buy with a $120 price target. * ConocoPhillips (NYSE: COP) at Buy with a $51 price target. * Exxon Mobil Corporation (NYSE: XOM) at Hold with a $41 price target.Dividend Policy: The three majors are known for offering low risk and stable dividend and the recent oil downturn forced the companies to defend payouts, even at the expense of cutting capex, accumulating new debt or shedding assets, Fitzpatrick wrote in the initiation note.The three companies offer investors a yield ranging from 4% to 8% versus a 20-year average of around 3% to 4%. The premium versus historical norms implies there are some concerns about the longer-term sustainability of dividends.Among the three companies, Chevron's dividend is the "most sustainable" and ConocoPhillips has more upside if oil trades north of $70. Exxon can't organically cover its dividend obligations until 2022 or beyond unless there is a recovery in its refining business.Cashflow: Oil and gas production accounts for around 90% of estimated 2022 cash flow for ConocoPhillips, followed by Chevron at 70% and 30% at Exxon. If product pricing moves up 10% and oil pricing stays flat, Exxon would have a free cash flow yield of 7% which allows it to cover capex and dividends organically. Chevron would still offer a better free cash flow yield at 11% and Exxon would look "more attractive" in this scenario.2020 Outlook And beyond: All three companies will lower their production in 2020 before stabilizing in 2021, the analyst wrote. All three companies have "gone big" in unconventional production, especially in the Permian region.Companies with large scale projects that only have the tail end of capex left boast a near-term advantage. Chevron can count on Tengizchevroil while Exxon can count on Guyana.In fact, Guyana represents the majority of additional volumes for Exxon in 2022 and 2023 and Tengizchevroil should account for the majority of Chevron's 3% compounded annual growth through 2024. By contrast, ConocoPhillips offers less of a growth prospect but "we still recognize the longer-term value," the analyst wrote.Related Links:OPEC Warns Second 'Strong Wave' Of Coronavirus Will Lead To Drop In Oil DemandUS Oil Imports Are Up In July: Why One Analyst Says Trend Unlikely To ContinueSee more from Benzinga * Analyst Reacts To Disney Indefinitely Delaying 'Mulan' Release * Fox Sports CEO: Baseball Is Back And Fans Are Excited * Meet Chowbus: The Food Delivery Company Focused On Asian Restaurants(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Tesla Q2 2020 Earnings: Stock Price Targets Popping

    Tesla Q2 2020 Earnings: Stock Price Targets PoppingTesla released its Q2 2020 earnings report last night, and analysts responded with a flood of price target increases for Tesla stock (NASDAQ:TSLA). We’re finally starting to see a significant number of analysts with price targets in excess of $1,000, although the company’s valuation still gives most analysts pause. The automaker reported $6 billion in revenue […]

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  • Munger’s Moats: Bank Of America, Paypal And Square

    Munger’s Moats: Bank Of America, Paypal And SquareCharlie Munger is famous for stressing the role of moats in successful investing.  He argues that only strong moats allow a business to earn returns in excess of the cost of capital for substantial periods of time.  The big problem is maintaining a moat.  Potential competitors, eyeing those excess returns, will want to enter.  What is […]

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  • Vaccine checkup: Where pharmaceutical companies stand in the fight against COVID-19

    Vaccine checkup: Where pharmaceutical companies stand in the fight against COVID-19Yahoo Finance’s Anjalee Khemlani breaks down where pharmaceutical companies stand in the fight against COVID-19.

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  • Senate Republicans’ COVID-19 relief plan delayed

    Senate Republicans’ COVID-19 relief plan delayedThe Senate Republicans’ coronavirus pandemic relief plan was delayed until next week due to disagreements, cutting it close to the July 31 deadline. Yahoo Finance’s Jessica Smith joins The Final Round panel breaks down the details.

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