The good news for income investors in this low interest environment is that the Australian share market is home to a large number of dividend-paying companies.

Two ASX dividend shares which I think are in the buy zone right now are listed below. Here’s why I like them:

Dicker Data Ltd (ASX: DDR)

The first dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software. Due to an increasing number of vendor relationships and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a strong rate over the last five years.

Pleasingly, this has continued this year despite the pandemic. At the end of April the company revealed that it had experienced a surge in demand for remote working products because of the work from home initiative. So much so, its first quarter profit before tax jumped 36.3% to $18.4 million. Management appears confident this strong form will continue and is planning to increase its FY 2020 dividend to 35.5 cents per share fully franked. This will be a 31% increase on last year’s dividend, which also included a 5 cents per share special dividend. This equates to an attractive 4.9% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

A second dividend share that I believe is in the buy zone is Telstra. With its medium term outlook arguably looking the brightest it has been in a long time, I think now is a great time to invest in this telco giant. This improving outlook is due to its T22 strategy, rational competition, and the easing of the NBN headwind.

While the NBN headwind is still here, peak pain from it is on the horizon. This should make a return to growth possible in the not so distant future. In fact, Telstra would have returned to growth in the first half were it not for this headwind. Underlying operating earnings excluding the in-year NBN headwind grew by approximately $90 million. In the meantime, I’m confident its free cash flows are sufficient to maintain its 16 cents per share fully franked dividend. This represents a very attractive 5.1% dividend yield.

More reading

• 3 ASX blue chip shares that could give your portfolio a boost
• How I would build a balanced portfolio worth $100,000 with 10 ASX shares
• 12 top ASX dividend shares to buy in June 2020
• What would I rather buy today: TPG or Telstra shares?
• Tech shares! Should we even invest in anything else?

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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At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the ASX despite yet another reduction in its short interest to 13.25%. The market appears concerned that the pandemic has accelerated the structural decline of department stores and pushed people online.
• Speedcast International Ltd (ASX: SDA) continues to have short interest of 13.2%. This communications satellite technology provider’s shares have been suspended since February. It is currently in the process of declaring itself bankrupt.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest pull back to 10.3%. Short sellers have been targeting Super Retail due to concerns that some of its brands could struggle during the pandemic.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest slide to 9.3%. A number of lithium miners have been experiencing declines in short interest this month. Traders may believe their shares have now bottomed.
• Webjet Limited (ASX: WEB) has short interest of 9.2%, which is down week on week. Short sellers appear to be targeting the online travel agent due to concerns over its valuation. Webjet’s market cap is now higher than it was in January despite the disruption and uncertainty caused by the pandemic.
• Inghams Group Ltd (ASX: ING) has returned to the top ten with 9.2% of its shares held short. A change in sales mix is expected to weigh heavily on this poultry company’s performance in FY 2020.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 9.1%. The biopharmaceutical company’s shares have fallen almost 40% over the last 12 months. It appears as though short sellers believe they can still go lower.
• Nearmap Ltd (ASX: NEA) has seen its short interest edge lower to 9%. Short sellers may be closing their positions after the aerial imagery technology company’s performance remained solid in the second half despite the pandemic.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest remain flat at 9%. Last week the retailer revealed explosive sales growth during the second half. Short sellers don’t appear convinced this strong form will continue in the months ahead.
• Orocobre Limited (ASX: ORE) has short interest of 8.8%, which is down week on week. Short sellers appear to be closing positions and moving on from the lithium miners. They may believe that their declines are now over.

More reading

• Top brokers name 3 ASX 200 shares to sell next week
• These were the worst performing shares on the ASX 200 last week
• Why the Nearmap share price and one other are on my buy list
• Why the Lovisa share price is at risk of falling further over the coming weeks
• 3 fantastic ASX shares to buy and hold to make you wealthy

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Webjet Ltd. The Motley Fool Australia has recommended Nearmap 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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On Friday the S&P/ASX 200 Index (ASX: XJO) followed the lead of international markets and dropped notably lower. The benchmark index fell 1.9% to 5,847.8 points.

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

ASX 200 to rebound.

The ASX 200 looks set to rebound on Monday after a solid finish to the week in the United States. According to the latest SPI futures, the benchmark index is expected to open the week 24 points or 0.4% higher this morning. On Wall Street the Dow Jones jumped 1.9%, the S&P 500 stormed 1.3% higher, and the Nasdaq index rose 1%.

Oil prices mixed.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed end to the week for oil prices. According to Bloomberg, the WTI crude oil price fell 0.2% to US$36.26 a barrel and the Brent crude oil price rose 0.5% to US$38.73 a barrel. This meant oil prices ended their six-week winning streak.

Healius sells medical centres.

The Healius Ltd (ASX: HLS) share price could be on the move today amid speculation that the healthcare company has agreed a deal to sell its medical centres. The company is believed to have agreed a fee of $500 million with BGH Capital for the assets.

Gold price edges lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower on Friday. According to CNBC, the spot gold price fell 0.15% to US$1,737.30 an ounce.

Auction rates improve.

Domain Holdings Australia Ltd (ASX: DHG) and REA Group Limited (ASX: REA) shares could be on the move today after Sydney and Melbourne auction clearance rates improved. According to Domain, 69.5% of Sydney home taken to auction last week were sold. Whereas in the Melbourne market, 57% of properties that went to auction were sold.

More reading

• Why the Healius share price will be in the spotlight tomorrow morning
• Cheap ASX 200 shares I’d buy for less than $10
• Why we may be in danger of another coronavirus ASX market crash
• These were the best performing shares on the ASX 200 last week
• Why the Nearmap share price and one other are on my buy list

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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