Luckily for income investors in this low interest rate environment, there are plenty of dividend shares that offer superior yields to those that you’ll find with term deposits and savings accounts.

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

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which has close ties with Wesfarmers Ltd (ASX: WES). Not only are the majority of its warehouses leased to Wesfarmers’ Bunnings business, the conglomerate is also a major shareholder in the trust. I think this is a big positive as the Bunnings owner is unlikely to do anything that would have a negative impact on BWP’s performance and ultimately its investment. Overall, I believe this leaves it well-placed for modest and consistent income and distribution growth over the next decade. At present I estimate that it offers investors a forward 5.1% yield.

Rio Tinto Limited (ASX: RIO)

Another dividend share to look at buying is this mining giant. I think Rio Tinto could be a great option due to its world class operations and the high levels of free cash flow it is generating. Especially given how high iron ore prices have been trading this year. And with many tipping prices to remain strong in 2021, Rio Tinto looks well-positioned to reward shareholders handsomely with dividends over the next couple of years. I estimate that its shares offer a forward dividend yield of at least 5%. But this could be much higher if special dividends are paid next year.

Transurban Group (ASX: TCL)

A final dividend share to consider buying is Transurban. It is a toll road operator with a number of key roads in Australia and North America. While its performance is likely to disappoint in the near term because of the pandemic, I expect traffic volumes to normalise as restrictions ease. So with its shares still down 12% from their high (and likely to go lower today), I believe it could be a great time to consider a long term and patient investment. I estimate that its shares offer a 3.3% FY 2021 distribution yield.

More reading

• 2 top ASX dividend shares you can buy right now
• Is the Wesfarmers share price good value?
• 2 top ASX dividend shares for income in 2020
• Why I think Wesfarmers is the best ASX blue chip
• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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This morning S&P Dow Jones Indices announced the June 2020 quarterly rebalance of the S&P/ASX Indices.

This is when a number of shares are added or removed from particular indices. Which can be a bigger deal than you might think, as billions of dollars are invested into funds which track indices like the S&P/ASX 200 Index (ASX: XJO).

In addition to this, fund managers often have mandates that allow them to only buy shares on a certain index. This can lead to them dumping shares which are removed from indices and buying shares which are added.

What changes have been made?

Given that S&P Dow Jones Indices skipped the March quarterly rebalance because of the market volatility, there have been a larger than normal amount of changes today.

Here’s a summary of some key changes that will be effective at the open on 22 June 2020.

S&P/ASX 20 Index

Gaming technology company Aristocrat Leisure Limited (ASX: ALL) has been added to the ASX 20 index at the expense of packaging company Amcor PLC (ASX: AMC).

S&P/ASX 50 Index

Infant formula and fresh milk company A2 Milk Company Ltd (ASX: A2M) will join the ASX 50 index later this month. It will take the place of embattled financial services company AMP Limited (ASX: AMP). Payments company Afterpay Ltd (ASX: APT) had been tipped for inclusion in the index but appears to have fallen just short.

S&P/ASX 100 Index

The shares of data centre operator NEXTDC Ltd (ASX: NXT) and gold miner Saracen Mineral Holdings Limited (ASX: SAR) have been strong performers in 2020. This has led to them being included in the ASX 100 index at the expense of shopping centre operator Unibail-Rodamco-Westfield (ASX: URW) and coal miner Whitehaven Coal Ltd (ASX: WHC).

S&P/ASX 200 Index

The benchmark index will welcome five new shares later this month. Centuria Industrial REIT (ASX: CIP), Megaport Ltd (ASX: MP1), Mesoblast limited (ASX: MSB), Omni Bridgeway Ltd (ASX: OBL), and Perseus Mining Limited (ASX: PRU) will join the illustrious index.

Making way for them will be Estia Health Ltd (ASX: EHE), Hub24 Ltd (ASX: HUB), Jumbo Interactive Ltd (ASX: JIN), Mayne Pharma Group Ltd (ASX: MYX), Pilbara Minerals Ltd (ASX: PLS), and Pinnacle Investment Management Group Ltd (ASX: PNI).

You might have noticed that there are five in and six out. This is because there has actually been 201 shares on the ASX 200 over the last few months. This was the result of Graincorp Ltd (ASX: GNC) spinning off its United Malt Group Ltd (ASX: UMG) business earlier this year.

Two surprising omissions from the new additions were Kogan.com Ltd (ASX: KGN) and Zip Co Ltd (ASX: Z1P). Both looked like strong candidates for inclusion after their remarkable share price gains this year. It looks like they will have to wait until September now.

More reading

• 3 gold mining shares that may be a buy today
• 5 things to watch on the ASX 200 on Friday
• Why is the A2 Milk share price underperforming?
• All Technology Index sees stunning comeback
• Why Afterpay, Amcor, Computershare, & Westpac shares are dropping lower

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 Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Hub24 Ltd, MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Hub24 Ltd, Jumbo Interactive Limited, and MEGAPORT 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.

The post S&P quarterly rebalance: A2 Milk added to ASX 50 & NEXTDC in the ASX 100 appeared first on Motley Fool Australia.

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Could this be the start of the second COVID-19 share market crash?

The S&P/ASX 200 Index (ASX: XJO) fell 3% yesterday and it’s expected to fall another 3% at the open. Who knows where it will finish by the end of today?

A second wave of COVID-19 was always a risk to the share market recovery. Countries like Australia, New Zealand, Taiwan and Vietnam have done a good job at controlling the spread of the virus. The north east of the US took the brunt of the initial wave. Now a lot of other US states are seeing rising numbers.

We’ve already seen that many places in the US can’t uniformly follow restriction rules, so this second wave could be harder to control. Although, the first wave didn’t really end.

Is this the second COVID-19 share market crash?

It certainly could be. A second wave was one of the key reasons that could start another share market fall. I don’t think the market was pricing in the high chance of a second wave. So if you’ve been saving your cash for another COVID-19 share market crash, this period is probably your chance.

But there’s a fair chance that this fall won’t be as bad as the first for a few reasons.

First, all of the central bank support is still there. Interest rates are still incredibly low in Australia, the US and Europe. It was seemingly the central banks stepping in that halted the crash in March.

Second, the US may be bad at controlling COVID-19 but many other places have gotten on top of it. Europe was in bad shape, but now daily case numbers are a lot lower. Several important countries in Asia are in control. We’re not looking at every developed country being in trouble. 

Third, people will expect a recovery. The first COVID-19 share market crash was only three months ago. There’s a good chance that once the market stops falling it will recover nicely again as people see value in lower prices.

Foolish takeaway

I’m going to be scanning the market today and next week to see if I can find any great opportunities. Be greedy when others are fearful. A 6% fall over 24 hours would certainly suggest that a COVID-19 share market crash may be starting. But it may be quicker and not as bad as the first. 

More reading

• Woolworths facing fresh threat from Amazon.com
• Is this why the NAB share price could be cheap today?
• ASX 200 to sink lower after Wall Street crashes on second wave concerns
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks

Motley Fool contributor Tristan Harrison 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 Is this the start of a second COVID-19 share market crash? appeared first on Motley Fool Australia.

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If you’re a growth investor, then you might want to take a look at the growth shares listed below.

I believe each of these companies are well positioned to grow their earnings at an above-average rate for many years to come. Which could potentially lead to their shares outperforming the market over the long term.

Here’s why I would invest $3,000 into these ASX growth shares once the dust settles on today’s market selloff:

Aristocrat Leisure Limited (ASX: ALL)

The first growth share I would suggest you consider buying is Aristocrat Leisure. While the gaming technology company is best known for designing and manufacturing many of the poker machines you’ll find in Crown Resorts Ltd (ASX: CWN) and countless casinos across the world, there is more to it than first meets the eye. Aristocrat Leisure also has a very lucrative digital business which is generating significant recurring revenues from its millions of daily active users. I believe this side of the business will be a key driver of growth over the next decade and expect it to become the biggest earner in the near future. 

Cochlear Limited (ASX: COH)

Another growth share to consider buying is Cochlear. I’m a big fan of the hearing solutions company due to the quality of its products, its strong long term growth prospects, and its high level of investment in research and development. I believe the latter will help keep its technology at the front of the pack and underpin solid earnings growth over the next decade and beyond. Another positive is its sizeable current market opportunity. The company estimates that less than 10% of people who would benefit from an implantable hearing solution are treated.

IDP Education Ltd (ASX: IEL)

A third growth share to consider investing $3,000 into is IDP Education. It is a provider of international student placement services and English language testing services. Over the last few years IDP Education has been growing at a rapid rate. And while its near term growth will inevitably be impacted by the pandemic, I expect it to accelerate again once the crisis passes. This could make it well worth considering a patient and long-term focused investment in its shares.

More reading

• 3 ASX shares to buy now with $10,000
• Can this ASX dividend share afford its 11% yield?
• 3 safe and strong ASX 50 shares to buy right now
• 3 quality ASX 200 shares to buy and hold until at least 2030
• 10 ASX 200 shares that are fit for the Queen

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 Cochlear Ltd. and Idp Education Pty Ltd. The Motley Fool Australia has recommended Cochlear 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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The National Australia Bank Ltd (ASX: NAB) share price slumped 5.4% lower yesterday but is the ASX bank now in the buy zone?

Why the NAB share price slumped lower yesterday

Alongside the NAB shares sliding in yesterday’s trade, the S&P/ASX 200 Index (ASX: XJO) dropped 3.1%. The benchmark ASX 200 index closed at 5,960.60 points.

I don’t think there was a fundamental shift behind yesterday’s ASX bank move although, according to reporting in the Australian Financial Review (AFR), not all investors are bullish on the ASX banks in 2020.

It’s worth noting the NAB share price opened up 5.1% on Tuesday and led the ASX 200 higher. 

Yesterday’s slump could simply be investors closing out positions and netting some tidy gains. After all, NAB’s value has rocketed 37.4% since bottoming out in the bear market on 23 March.

Is NAB a cheap ASX bank share to buy today?

After NAB’s price fall yesterday, it’s now down more than 33% from its 52-week high of $30 per share.

NAB does have a large business banking segment which does create some headaches for investors. I think whether NAB is cheap depends on how you view the business’s recovery in 2020 and 2021.

Restrictions are starting to ease which is good news for the economy and corporate earnings. If NAB’s debtors continue to pay their loans then the Aussie bank’s earnings could surprise the market in October or November.

However, there’s plenty of uncertainty remaining in the economy. One of the big question marks is how the removal of the current government stimulus measures will impact on the Aussie economy.

I think there could still be long-term value in the NAB share price at $19.07 per share. The ASX banks have historically been strong dividend shares and I think that will continue in 2021 and beyond.

Foolish takeaway

Yes, the NAB share price slumped lower yesterday but the trend in the past few months has been upward. That could mean there’s a chance to buy for a good price if you’re a buy and hold investor looking at the decades ahead.

More reading

• ASX 200 to sink lower after Wall Street crashes on second wave concerns
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• These ASX shares are the best way to invest overseas

Motley Fool contributor Ken Hall 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 Is this why the NAB share price could be cheap today? appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The good times are over for the Dow Jones Industrial Average (DJINDICES: ^DJI). The Dow was down 4.3% at 11:50 a.m. EDT Thursday as the possibility of a second wave of the novel coronavirus spooked investors.

Confirmed cases of the virus are surging in some places around the U.S. following the easing of lockdown measures and the reopening of the economy. In Texas, more than 2,500 cases were confirmed on June 10, setting a record for the state. Florida, California, and nearly a dozen other states are also seeing an increase in cases.

Apple (NASDAQ: AAPL) outperformed the Dow thanks to some analyst price-target bumps, but shares were still down amid the broad sell-off. Disney (NYSE: DIS) stock was hit much harder. The company is preparing to reopen its U.S. parks in a highly uncertain environment.

Apple outperforms on analyst optimism

Apple couldn’t fully escape the steep sell-off in the major stock indices on Thursday, but a trio of analyst price target bumps helped limit the damage. Apple stock was down just 1.4% by late morning, making it one of the best-performing Dow components.

Wells Fargo chimed in on Thursday morning, raising its price target on Apple stock from $315 to $385. The bank based its optimism on mobile phone registration data for April and May in China, which showed a recovery in smartphone demand. Apple’s total revenue from China was down 7.5% in the quarter ended March 28.

Bank of America also got in on the action, reiterating a buy rating on Apple stock and raising its price target from $340 to $390. BofA expects a quick recovery in demand in emerging markets, strong App Store sales in China, and gross margin improvements due to a mix shift toward pricier iPhones. However, the bank sees U.S.-China trade tensions and a lengthening iPhone replacement cycle as two risks facing the tech giant.

Lastly, HSBC upgraded Apple stock from reduce to hold, raising its price target from $225 to $295. The upgrade was based on the expectation that Apple will have a successful launch of 5G iPhones later this year.

How well Apple’s new iPhones sell this year will depend partly on the state of the U.S. economy. While the situation is improving following the easing of lockdown measures across the country, a potential second wave of the novel coronavirus could dampen that recovery. If consumers aren’t keen on shelling out for an expensive new smartphone amid a recession, Apple stock may have a rough road ahead.

Disney slumps as second wave fears mount

Few companies are more exposed to risk in a second wave of the virus than Disney. The stock was down 5.8% by late Thursday morning as investors chewed on the idea that the pandemic is far from over.

Disney is planning to begin a phased reopening of its Disney World Resort in Florida on July 11. The company has also unveiled plans to begin reopening its Disneyland Resort in California on July 9. Under the plan, which still requires government approval, various portions of the resort will reopen on dates ranging from July 9 to July 23. Capacity will be significantly limited, and a new theme park reservation system will be in place.

The big question: How many guests, especially those who need to fly in from other parts of the country, will return to the company’s properties amid a pandemic? This question is complicated by the potential for a second wave of the virus, which could make people less likely to make the trip. Disney may be facing a long period of depressed attendance, and it may take a successful vaccine for the company’s parks business to fully recover.

Disney stock has surged from its March low on optimism surrounding the company’s reopening of its properties. That optimism seems to be fading as cases of the virus surge in some parts of the country.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• ASX investors brace to ride the next wave of “irrational exuberance”
• Here’s why it’s vital your ASX shares have a moat
• Should ASX 200 investors want share buybacks or dividends?

Timothy Green owns shares of Bank of America. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short July 2020 $115 calls on Walt Disney. The Motley Fool Australia has recommended Apple and Walt Disney. 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 Dow Jones Tumbles 1,200 Points on Virus Fears; Apple Stock Outperforms; Disney Stock Plunges appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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