The ANZ region may only have a small tech sector in comparison to the United States, Europe, and China, but it is home to a good number of quality companies which I believe are worthy of a spot in most portfolios.

Three of my favourites are listed below. Here’s why I like them:

Altium Limited (ASX: ALU)

Altium is easily one of my favourite tech shares on the Australian share market. It is a software-as-a-service company that provides an award-winning printed circuit board (PCB) design platform. PCBs are the small boards you find in almost all electronic devices. Given the proliferation of electronics, demand for its software has been growing at a very strong rate in recent years. The good news is that management doesn’t expect this demand to ease any time soon. In FY 2020 it expects to have 50,000 software subscriptions. It is then targeting market domination and 100,000 subscriptions by FY 2025. Given the quality of its software and its leadership position in the industry, I believe Altium will achieve its goals.

Bigtincan Holdings Ltd (ASX: BTH)

Another tech share to consider buying is Bigtincan. It is a provider of enterprise mobility software that enables sales and service organisations to increase sales win rates. It has a number of blue chip clients using its software, which I believe is a testament to its quality. One of these is Australia and New Zealand Banking Group (ASX: ANZ). The banking giant has been able to streamline its processes for capturing client information through the use of tablets and a custom Bigtincan build. Bigtincan revealed that this cutting-edge approach to optimising its frontline workers’ processes has helped the bank differentiate itself and increase customer satisfaction. With demand growing strongly, Bigtincan is expecting another strong result in FY 2020. It expects to deliver a 30% to 40% increase in organic revenue growth despite the pandemic.

Xero Limited (ASX: XRO)

A final tech share to consider buying is this cloud-based business and accounting software provider. It has been growing at an explosive rate over the last few years thanks to the rapid adoption of its software by small businesses across the globe. The good news is that management estimates that less than 20% of the global English-speaking target market is using cloud-based accounting software at present. Given the overwhelming benefits of cloud-based software over alternatives like an Excel spreadsheet, I believe more and more businesses will make the switch in the coming years. This should provide Xero with a significant runway for growth over the next decade.

More reading

• Should you invest $1,000 in Altium shares today?
• 3 ASX dividend shares to buy today
• 3 ASX 200 growth shares I want to buy for my portfolio
• How to make a $50,000 passive income with ASX shares
• Have $500 to invest? Then buy these 5 ASX 200 shares 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 Xero. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of Altium. 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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Finding top dividend-paying ASX shares is a hard ask these days. We’ve already seen dozens of ‘blue chips’ cut, defer or cancel dividend payments in 2020, including Transurban Group (ASX: TCL), Westpac Banking Corp (ASX: WBC) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

I’m sure we’ll see a lot more by the end of the year, too.

So with this in mind, here are 3 ASX dividend shares that I think will make excellent choices for income in 2020.

Australia Foundation Investment Co Ltd (ASX: AFI)

AFIC is a listed investment company (LIC) that has been around since the 1920s. Since then, it has developed a reputation for conservative, broad-based investing with a focus on delivering fully franked dividends.

I think AFIC is well positioned to continue this tradition in 2020. Management has rotated away from ASX bank shares in recent months, with only Commonwealth Bank of Australia (ASX: CBA) appearing in the company’s top 5 holdings. Replacing them are shares like CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP)

On current prices, AFI shares are offering a trailing dividend yield of 4.16%, or 5.94% grossed-up.

Coles Group Ltd (ASX: COL)

Coles is another ASX blue chip that I expect to deliver strong dividend payments in 2020 and beyond. We all saw the rush on Coles and other supermarkets in the early stages of the coronavirus pandemic.

This ended up leading to a 12% sales bump for Coles in the quarter ending 31 March 2020. Coles has a dividend payout policy of 80–90% of earnings, so these sales should somewhat underpin its dividend payments for the rest of the year.

On current prices, Coles shares are offering a trailing dividend yield of 2.75%, or 3.93% grossed-up.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This exchange-traded fund (ETF) is designed to maximise exposure to the ASX’s best dividend-paying shares. As such, it holds a basket of 62 shares that service this goal.

Much like AFIC, VHY’s portfolio has recently adapted to 2020 conditions by transitioning away from the ASX banks into more reliable dividend shares. I think this flexibility is a great asset during these uncertain times, and I like that management has been agile in this respect. Its top holdings now include BHP and Wesfarmers Ltd (ASX: WES).

The trailing dividend yields from ETFs can be a little more unreliable than individual ASX shares, but VHY brings it in at 6.7% for the trailing 12 months. Vanguard estimates VHY’s forward yield at 5.6% or 7.7% grossed-up.

More reading

• 3 strong ASX 200 shares to buy for a retirement portfolio
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• How to reduce your work to part-time using ASX shares
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• 3 super strong ASX 200 blue chip shares to buy right now

Sebastian Bowen owns shares of Vanguard Australian Shares High Yield Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, and Wesfarmers 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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I think that high yield dividend shares could be the answer for income during these times.

The problem for some investors is that solid dividend shares like APA Group (ASX: APA) have seen the yield compressed as the share price rises.

Dividend shares with high yields may be able to boost your portfolio’s overall yield enough to get through this period.

Here are three ideas:

WAM Leaders Ltd (ASX:WLE)

This is a listed investment company (LIC) which invests in the larger businesses on the ASX.

It’s not necessarily a longer-term investor, so it may not matter that many of the biggest shares are cutting their dividends due to the coronavirus. WAM Leaders can make money from just the capital gain profits.

It can then turn those capital gains into a growing dividend for shareholders. It’s run admirably by lead portfolio manager Matthew Haupt.

WAM Leaders qualifies as a high yield dividend share because it has a grossed-up dividend yield of 8.8%.

WAM Research Limited (ASX: WAX)

This is another LIC operated by the investment team at Wilson Asset Management. This one is looking for small and medium growth shares on the ASX.

Again, most of the profits generated will come from capital growth rather than dividends from its owned shares.

Prior to the coronavirus sell-off, it was one of the best-performing LICs out there over the long-term. I think it could be one of the best again in the 2020s. 

I can’t think of many high yield dividend shares that would have paid out as much as WAM Research over the past decade. It started with a high yield and it has increased the dividend every year since the GFC.

WAM Research qualifies as a high yield dividend share because it has a grossed-up dividend yield of 10.4%.

Challenger Ltd (ASX: CGF)

Challenger is the Australian market leader of annuities. If someone takes out an annuity in Australia it’s likely to be a Challenger one, or at least a white label Challenger product.

The ageing demographics are on Australia’s side as more people are heading towards retirement over the next couple of decades.

Challenger is a high yield dividend share. But remember that a dividend is not an annuity, it’s not guaranteed. But Challenger did maintain its dividend during the GFC and with its normalised profit seemingly stable, Challenger may be able to keep paying its grossed-up dividend of 10.5%.

Foolish takeaway

All three of these shares have high dividend yields and could really boost your income. The low interest rate is probably problematic for Challenger for the longer-term, so with that in mind I’d probably go for WAM Research at this stage for its large dividend yield, the focus on growth and good portfolio diversification.

More reading

• Replace your term deposit with these dividend shares
• How I would build a $130,000 ASX dividend portfolio right now
• Here are 2 ASX dividend shares with yields over 10%
• My 3 best ASX dividend shares to buy right now
• These are the ASX blue chips I’d buy 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 APA 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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Joe Rogan has the hottest podcast in entertainment media. Last week, we learned it would be hosted exclusively on Spotify’s platform. Its share price jumped immediately. Today, the Foxtel Binge streaming service launched here in Australia. The tectonic plates of the media industry are shifting again, and not everyone is going to make it through.

There are 3 major ASX entertainment media shares that generate and distribute news: News Corp (ASX: NWS), Nine Entertainment Co Holdings Ltd (ASX: NEC), and Seven West Media Ltd (ASX: SWM). Whichever is the first mover will be the better investment. 

Replacement revenue

When REA Group Limited (ASX: REA) and SEEK Limited (ASX: SEK) started to eat into classified revenues, it was News Corp that acted first. Today, News Corp owns 62% of REA Group, which is one of the better value companies on the ASX, in my opinion.

Fairfax also launched and spun off Domain Holdings Australia Ltd (ASX: DHG), which is also a real estate classifieds service. Nine Entertainment holds 52.9% of Domain through its acquisition of Fairfax. Domain is a far more lacklustre version of REA, however. Today it is 1/11th of the size by market capitalisation. There is a lot of market share it can capture, but it just doesn’t seem interested at the moment.

None of the major ASX entertainment media shares have a significant stake in car classifieds online company Carsales.Com Ltd (ASX: CAR). Given recent history, this would appear to be a mistake. 

Seven West Media is in the early stages of a range of online and technology investments. None, however, can challenge the revenue replacement streams of Nine or News Corp. 

Entertainment media diversity

All entertainment media companies own newspapers, television channels and radio stations. However, News Corp stands out as the 65% owner of Foxtel, and the 100% owner of 24-hour news channel Sky News. This provides it with exposure through Foxtel to the new Binge streaming service, should it prove successful.

In the realm of radio, Nine Entertainment has both 3AW in Melbourne and the revenue juggernaut of 2GB in Sydney. It has recently lost revenue generator Alan Jones as a presenter, but he will be replaced by the affable and popular Ben Fordham. 

Seven West has launched an innovative product in its new morning podcast The West Live with Jenna Clarke. This has had a monster reception in the West and has sidestepped local radio. They regularly have the Premier, state ministers, federal ministers, local mayors, as well as local entrepreneurs and billionaires. I listen to it daily and already many of my colleagues and friends have discovered it by themselves.

Management

Of all of the 3 ASX entertainment media shares, the financial history of News Corp Australia is the most compelling. Seven West Media and Nine Entertainment are the least compelling – across all major valuation metrics they have gone backwards for 10 years. News Corp, on the other hand, has been able to grow cashflow at a compound annual growth rate of 13.4% for the past 7 years. 

Foolish takeaway

I am a big believer in the future of the news business in all of its forms. In my view, Spotify’s Rogan deal, The West Live podcast, and the move to streaming shows there is the potential for one of the incumbent ASX entertainment media shares to make very big strides into the future. It depends which one moves first. 

More reading

• Is the REA Group share price a buy?
• 3 super strong ASX 200 blue chip shares to buy right now
• Got $10,000 to invest? I would buy these ASX shares right now
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• Investing $1,000 in these 3 ASX shares would be a smart move

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited, Nine Entertainment Co. Holdings Limited, REA Group Limited, and SEEK 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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