Last week, the United States Nasdaq hit a fresh, all-time high. This was driven largely by the tailwinds of its FAANG tech giants. I believe this trend is likely to continue given the changes in consumer behaviour resulting from the coronavirus pandemic. This includes an increase in people globally working and learning from home. As tech continues to outperform the general market, I feel the Zip Co Ltd (ASX: Z1P) share price as well as that of Tyro Payments Ltd (ASX: TYR) could be two to watch this June. 

The Zip Co share price 

Earlier this month, Zip Co announced the acquisition of QuadPay. The acquisition enables the company to compete directly with buy now, pay later (BNPL) giant Afterpay Ltd (ASX: APT) for the lucrative $5 trillion US retail market. QuadPay is a simple, BNPL product that allows customers to pay for their purchases via 4 interest-free instalments over 6 weeks. The merchant gets paid up front with risk and fraud liability absorbed. QuadPay already has more than 1.5 million customers in the US and 3,500 merchants on board. It delivered an annualised revenue of $70 million for the quarter ending March 2020. This is a transformational acquisition that lifts the status of the Zip Co business to that of a truly global BNPL leader. The company now has operations across Australia, New Zealand, South Africa, the UK and the US.

The US in its sights

To fast track its growth in the US, Zip Co is raising $200 million in funding. The capital is being provided by Susquehanna International Group (SIG). SIG is one of the largest privately-held financial services firms globally. The company will provide Zip Co with $100 million in convertible notes and up to an additional $100 million in warrants. This means Zip Co shares will be progressively diluted as $10 million of notes are converted into shares every six months. 

Zip Co updated the market last week on its performance for the month ending 31 May. This update reiterated the strong business environment for the company. Monthly revenue was up 78% year-on-year. Customer numbers increased 63% to 2.1 million. And customer repayment success rates were on par with or higher than pre-COVID-19 rates.

All things considered, Zip Co is undergoing a significant transformation. The company is transitioning from a local BNPL platform to a global BNPL leader. The Zip Co share price has responded nicely following a 70% surge between 29 May and 3 June. So does the Zip Co share price represent a solid, long-term buy? Personally, I would wait for the concerns regarding a second wave of coronavirus in China and the recent market sell-off to subside before jumping in. However, I do believe the company’s acquisition of QuadPay makes Zip Co a top ASX tech share to watch moving forward. 

The Tyro Payments share price 

Tyro is the fifth largest merchant acquiring bank behind Australia’s big four banks. The company’s customers consist largely of SME businesses operating in the health, hospitality and retail sectors. Tyro represents one of many businesses that have been significantly impacted by lockdown measures. During peak restriction periods across April and May, Tyro’s customer transaction values declined by 38% and 18% respectively, compared with the prior corresponding periods. 

Tyro’s transaction volumes for June (up until 12 June), however, have increased by 6%. This indicates early signs of increased economic activity and business slowly returning to ‘normal’. Continued easing of restrictions should see improved transaction values. Particularly as more consumers are able to partake in increased leisure activities. NSW, for example, has increased the amount of customers that pubs, clubs, cafes and restaurants can hold from 20 to 50 in June. WA is also considering allowing stadiums to operate at a limited capacity of approximately 25%. I believe that, for Tyro Payments, the worst is now behind it. As such, it could be an ASX tech share that can outperform over the coming months.  

More reading

• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower
• Sezzle shares and 2 other ASX techs soared up to 50% in the past 4 weeks
• ASX winners and losers from last week
• The most explosive ASX tech shares you can buy today
• How I would build a balanced portfolio worth $100,000 with 10 ASX shares

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments and ZIPCOLTD FPO. 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.

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Every so often, I like to take a look to see which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

A number of shares have reported meaningful insider buying this week. Here are a couple which have caught my eye:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

According to a change of director’s interest notice, one of this regional bank’s directors has been buying shares this month. The notice reveals independent director Vicki Carter picked up 6,015 shares through an on-market trade on 10 June 2020. These cost an average of $7.98 per share, which equates to a total consideration of $48,000.

With the bank’s shares down almost 40% from their 52-week high, it appears as though this director sees value in them at the current level. One broker that would agree is Ord Minnett. Last week its analysts upgraded Bendigo and Adelaide Bank’s shares to an accumulate rating with an $8.10 price target.

Ramsay Health Care Limited (ASX: RHC)

A change of director’s interest notice reveals that one of this private hospital operator’s non-executive directors has just made a sizeable purchase of shares. According to the notice, Dr Claudia Süssmuth Dyckerhoff PhD purchased 2,500 Ramsay shares through an on-market trade on 12 June 2020. Dr Dyckerhoff paid an average of $66.25 per share, which equates to a total consideration of $165,625.

As with Bendigo and Adelaide Bank, the Ramsay share price is down materially from its high. This has been driven partly by the disruption to its operations caused by the pandemic. Interestingly, Ord Minnett also appears to see this share price weakness as a buying opportunity. Earlier this month its analysts reiterated their accumulate rating and lifted their price target on the company’s shares to $78.25.

More reading

• Why the Healius share price will be in the spotlight tomorrow morning
• 2 top ASX dividend shares for income in 2020
• These ASX bank stocks just got upgraded by top brokers to “buy” – and they aren’t the big four
• Why Bendigo and Adelaide Bank, BWP, G8 Education, & Westpac are zooming higher
• Where to invest $20,000 into ASX shares immediately

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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ASX dividend shares can replace a term deposit if you buy them for income.

The income on offer from the bank is very low these days. It’s not really a surprise considering how low the RBA interest rate is at just 0.25%.

If capital protection is your main focus then term deposits may still be the most appropriate choice. Investing in shares opens you up to the volatility of the share market. Shares can help overcome the long-term negative of inflation. Just be aware that share prices can go down sometimes.

Here are three ASX dividend shares that you could buy to replace the income of a term deposit:

Share 1: Rural Funds Group (ASX: RFF)

Rural Funds has a great business model to deliver good income and growth. It’s a farmland landlord that aims to increase its distribution by 4% per annum. That’s a decent growth rate for an ASX dividend share.

It can do that thanks to two main factors. The first reason is that rental indexation is built into its rental contracts. Rent is contracted to grow each year by a fixed 2.5% annual increase or grow by CPI inflation, plus market reviews.

The other helpful factor is that Rural Funds is re-investing around 20% of its adjusted funds from operations (AFFO) into productivity improvements at its farms for the tenant. This boosts the value of the farm and increases the rental income.

It’s invested across a diverse farming portfolio of cattle, cotton, macadamias, almonds and vineyards. It currently has a forecast FY21 distribution yield of 5.7%. I think that’s a solid starting yield for an ASX dividend share.

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

I believe Soul Patts is one of the best ASX dividend shares. It has paid a dividend every year since it started in 1903. Soul Patts has also grown its dividend every year since 2000. It currently has a grossed-up dividend yield of around 4.4%

Soul Patts owns a diversified portfolio of listed and unlisted businesses. Each year Soul Patts receives a stream of investment income from its holdings. After paying for operating costs, Soul Patts then pays out most of the net cashflow to shareholders. In FY19 it retained about 20% of its net cashflow to re-invest for more opportunities to grow the cashflow and dividend in future years.

The ASX dividend share is invested in ASX businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Milton Corporation Limited (ASX: MLT) and Clover Corporation Limited (ASX: CLV).

Share 3: Whitefield Limited (ASX: WHF)

Whitefield is one of the oldest listed investment companies (LICs) on the ASX. It was founded in 1923.

Its portfolio is largely focused on ASX blue chips. Some of its biggest holdings are CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG) and APA Group (ASX: APA).

It has a higher focus on ‘industrial’ businesses and aims to outperform the S&P/ASX 200 Industrials Accumulation Index over rolling 5-year periods.

The ASX dividend share has a very reliable record over the last 25 years, with no dividend cuts. It’s not guaranteed that the dividend won’t be cut in the future. However, I think it’s a good sign that the company has maintained the dividend even during times like the GFC.

One of the other attractive things about Whitefield is its reasonably low operating cost. According to Whitefield, its operating expense ratio is approximately 0.40% of gross assets.

It currently has a grossed-up dividend yield of 6.5%.

Foolish takeaway

Each of these ASX dividend shares have solid dividend records and attractive starting yields. If I had to start with one it would be Soul Patts because of its consistent dividend growth and diversification.

More reading

• 3 strong ASX dividend shares to buy next week
• Why I think that Soul Patts is the best long-term ASX share
• If I won the lottery I’d buy these 6 ASX shares
• 2 defensive ASX shares to protect your portfolio
• The pros and cons of investing in high yield dividend shares

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group, Wesfarmers Limited, and 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.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing the benchmark index is down 0.25% to 5,833.3 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

The ASX Ltd (ASX: ASX) share price is down 1.5% to $84.10. This appears to have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded the stock exchange operator’s shares to a lighten rating with a $78.00 price target. It believes trade volumes may have peaked and appears concerned over futures volumes.

The Domain Holdings Australia Ltd (ASX: DHG) share price has fallen 5.5% to $3.14. Investors have been selling the property listings company’s shares despite auction clearance rate improving in Melbourne and Sydney last week. According to CoreLogic, combined capital city preliminary auction clearance rate hit 63.3% last week. It was also the busiest week for auctions in almost two months. Investors may have been anticipating an even stronger clearance rate.

The Tyro Payments Ltd (ASX: TYR) share price has fallen almost 6% to $3.58. This follows the release of its latest weekly update. According to the release, as of June 12, Tyro Payments’ transaction value was up 6% month to date compared to the prior corresponding period. Investors may have been expecting a bigger jump in volumes now restrictions are easing.

The Wesfarmers Ltd (ASX: WES) share price has dropped over 2.5% to $41.32 despite there being no news out of the conglomerate. However, prior to today, the Wesfarmers share price was up 12% in the space of a month. This may have led to some investors deciding to take a bit of profit off the table today.

More reading

• Keep a watch on the Zip Co share price and 1 other ASX tech this June
• ASX 200 down 0.3%: Big four banks mixed & Healius rockets on medical centre sale
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
• 5 things to watch on the ASX 200 on Monday
• Why the Healius share price will be in the spotlight tomorrow morning

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 Tyro Payments. The Motley Fool Australia owns shares of 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has failed to follow the lead of international markets and is dropping lower. The benchmark index is down 0.3% to 5,831.3 points currently.

Here’s what has been happening on the market today:

Bank shares mixed.

The big four banks have had a subdued start to the week. At lunch just the Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher with a 0.15% gain. Whereas the worst performer in the group is the National Australia Bank Ltd (ASX: NAB) share price with a 0.15% decline. Investors appear undecided on where the banks are going from here after a volatile few weeks.

Healius sells medical centres.

The Healius Ltd (ASX: HLS) share price has surged higher on Monday after announcing the sale of its medical centres to BGH Capital. According to the release, the healthcare company has agreed a fee of $500 million with the private equity firm. Completion of the transaction is expected to occur before the end of 2020. However, it remains subject to a number of conditions, including approval by the Foreign Investment Review Board.

Super Retail equity raising.

The Super Retail Group Ltd (ASX: SUL) share price was placed in a trading halt this morning. The retail group requested the halt while it launches an underwritten accelerated pro-rata non-renounceable entitlement offer to raise approximately $203 million at $7.19 per share. Management believes this equity raising will allow the company to continue to execute its strategy and pursue strategic growth initiatives. Super Retail also revealed that its like for like sales rebounded strongly in May.

Best and worst ASX 200 shares.

The Healius share price is leading the way on the ASX 200 on Monday with a sizeable 11% gain. Investors appear to see value in its plan to sell its medical centres to BGH Capital. The worst performer on the index has been the Domain Holdings Australia Ltd (ASX: DHG) share price with a 5% decline. This is despite auction clearance rates improving in Melbourne and Sydney at the weekend.

More reading

• One often overlooked tax tip that could save you thousands
• Why Appen, Healius, IDP Education, & Propel shares are racing higher
• Why the Super Retail share price is in a trading halt
• Is the Webjet share price ridiculously cheap?
• Gold mining shares – these are the facts and myths

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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The end of the financial year is a little more than a week off and there’s one tax tip that could save you thousands if you act quick.

This often overlooked exercise is to maximise your concessional superannuation contribution, and this financial year could be a particularly important time to undertake this review for many investors.

Why you should think more about taxes this year

For many, things were going well prior the COVID-19 crisis. Jobs were relatively easy to find, the economy was strong and the S&P/ASX 200 Index (Index:^AXJO) was trading at record highs.

Things looks a little more challenged for FY21 and things may not be quite as good as it was this financial year.

If you share a similar outlook, then it especially makes sense to see if you can reach your concessional super cap before June 30.

Just remember, this article isn’t tax advise and is only general information. You should check with your accountant to see if it’s right for you.

What are concessional contributions

Many do not think about super because – let’s face it, it’s boring. Also, people tend to think this is only something to worry about in the distant future as you can’t access it till you retire.

So, if you don’t know what concessional contributions are, you won’t be alone!

The most common type of concessional contribution is the super paid by your employer. While the amount makes up part of your total remuneration package, you don’t pay personal income tax on your super contribution.

But you can contribute more to your super on your own (called personal contribution), as long as you follow the rules.

Concessional contribution limits

Individuals are allowed to put in up to $25,000 a year into their super and deduct that from their taxable income. The contribution is taxed in the super fund at 15%.

As most taxpayers have a marginal tax rate in excess of 15%, the tax savings can be substantial, particularly since you can carry-forward unused concessional contributions limits if your super balance is under $500,000.

This carry-forward feature is only available from 1 July 2018 onwards and it’s on a five-year rolling basis. After which, unused carry forward “credits” that are unused will expire.

How to lower your tax liabilities

So, if you’ve received nothing in your super in FY19, you can put up to $50,000 into your super under the concessional scheme and deduct that from your taxable income.

Depending on your marginal rate, this could shave thousands off tax bill.

You can find out more information at the ATO website.

But as I mentioned earlier, you must check with your tax professional to see if this strategy works for you.

More reading

• ASX 200 down 0.3%: Big four banks mixed & Healius rockets on medical centre sale
• Is the Webjet share price ridiculously cheap?
• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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 Vocus Group Ltd (ASX: VOC) share price fell as low as $1.80 in mid-March. Since then the company’s share price has rallied strongly, regaining a substantial portion of its losses since late February.

Vocus has been working hard to turn around its business after a challenging few years.

So does the Vocus share price make it a solid long-term buy right now?

Vocus’ position in the telco market

Let’s first take a recap on exactly how Vocus fits into the Aussie telco landscape.

Vocus is a specialist fibre and network solutions provider. Its services include broadband, fibre, data centre services and Unified Communications.

The telco mainly targets the enterprise, government, wholesale and small business markets. It also has a smaller presence in the residential sector offering fixed broadband.

Vocus operates fibre networks connecting most regional centres in Australia, which then connect with Asia. Vocus also operates a network in New Zealand.

Challenging years for the Vocus share price

Founded in 2008, Vocus grew significantly in scale during 2015 and 2016. During that time, it merged with retail telco M2 Communications and also acquired Amcom and Nextgen Networks. Both of these telcos target the corporate market.

The last few years have been challenging for the company. The Vocus share price rose strongly through the last decade up until mid 2016. However, it subsequently dropped sharply over the following 12 months into 2017. Since then, it’s never really recovered to its previous highs.

Vocus reported a 7% decline in total revenue to $902 million for H1 FY2020. Retail in particular was hit hard, suffering a 12% decline to $382 million. The Retail business was impacted by a loss of market share in its National Broadband Network (NBN) segment.

Over the past few years Vocus’s retail division has struggled. This has been mainly due to the tight margins offered to retail fixed broadband operators under Australia’s NBN.

Turnaround strategy on track

Despite this performance, I believe the company is now becoming better positioned for solid growth over the next few years which could be good news for the Vocus share price. The group is just beyond the mid-point of a 3-year turnaround strategy. This includes investments in new capabilities to grow its Network Services division. This division has continued to see strong sales momentum through a solid pipeline of new opportunities.

EBITDA for H1 FY 2020 increased by 2% to $179.3 million for H1 FY2020, driven by a stronger performance in its Network Services and New Zealand businesses. Vocus is also providing stimulus to its retail segment to help turn it around.

On another positive note, Vocus recently reiterated its FY 2020 guidance. The group expects its FY 2020 EBITDA to be in the range of $359 million to $369 million. Vocus also expects its core Network Services business to deliver EBITDA growth of 10% in FY 2020.

Is the Vocus share price a long-term buy?

As a specialist fibre and network services provider, I believe that Vocus is well positioned to capitalise on the rollout of 5G services over the next few years. Also, moving forward, NBN Co will place greater emphasis on making efficient use of existing fibre infrastructure. Vocus is well placed to capitalise on this opportunity which it could potentially exploit by using its existing telco networking infrastructure to partner with NBN Co.

However, the company’s retail division still faces challenges, despite encouraging signs of revenue stabilisation. In addition, the Vocus share price has rallied strongly since mid-March.

Having said that, on balance, I still think Vocus offers investors a reasonably solid, long-term buy and hold opportunity. 

More reading

• Top broker tips the Vocus share price to zoom higher
• 5 things to watch on the ASX 200 on Friday
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Why Corporate Travel Management, SKYCITY, Vocus, & Westpac are pushing higher
• Why this ASX 200 telco share is storming higher today

Motley Fool contributor Phil Harpur 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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