Stock Pick

  • These ASX growth shares could be dividend stars of the future

    dividend chart increasing

    When it comes to dividends, most investors will look for yield. While that is wise if you are in immediate need of income, if you afford to be patient you could be rewarded handsomely.

    Two top ASX shares which have the potential to grow their earnings and dividends materially over the next decade are listed below. Here’s why I think they could be dividend stars of the future:

    Jumbo Interactive (ASX: JIN)

    Jumbo is an online lottery ticket seller which is best known as the operator of the Oz Lotteries website. It also provides its software platform to a range of businesses and charities in the domestic and international markets. Its shares have come under pressure this year due to concerns over its slowing growth. However, this has been caused by its investment in growth opportunities and is expected to be temporary.

    Management expects its margins to return to normal levels again in the near term and its earnings growth should accelerate thereafter. In the meantime, if Jumbo maintains the 36.5 cents dividend it paid in FY 2019 again this year, its shares will provide a 3.1% yield. I think this is an attractive yield already, but could grow materially in the future. Jumbo’s investments are expected to play a key role in the company achieving its global ticket sales target of $1 billion in FY 2022. This will be around triple what it recorded in FY 2019.

    Kogan.com Ltd (ASX: KGN)

    This ecommerce company recently released a business update which revealed exceptionally strong sales and profit growth during the month of April. While the company is certainly getting a lift from store closures during the pandemic, I believe its growth will continue over the next decade thanks to the ongoing shift to online shopping.

    I expect Kogan to pay a fully franked 19 cents per share dividend in FY 2020. While this is only a 2.15% yield right now, I believe this dividend will grow significantly over the next decade. This could make it well worth buying and holding Kogan’s shares.

    And here is another highly rated ASX dividend share which offers a very generous yield and plans to increase its dividend by ~30% in FY 2020.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all time high and paying a 6.7% grossed up dividend

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    *Returns as of 7/4/20

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    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 owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Jumbo Interactive 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 These ASX growth shares could be dividend stars of the future appeared first on Motley Fool Australia.

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  • RCL Stock Is Swimming in Troubled Waters

    RCL Stock Is Swimming in Troubled WatersRoyal Caribbean (NYSE:RCL) shares have shed 70% of their value since last year. With no-sail orders in place throughout the United States and Europe through July, cruise lines are finding ways to preserve their liquidity so that they are in good shape to potentially return this summer. Uncertainty looms over the resumption of business for RCL stock, but executives are hoping the company can restart operations before 2021.Source: Laszlo Halasi / Shutterstock.com With virtually no revenue since mid-March, RCL is burning between $250 million and $275 million a month while its operations are suspended. To mitigate costs, the company has cut more than 5,000 of its employees, a number which is expected to grow under a prolonged recession scenario.According to Zack's Investment Research, earnings estimate for the upcoming quarter is a loss of 58 cents, which is a 145% decrease from the year-ago quarter. Let's dive a little deeper as to why I believe that RCL stock will struggle for the foreseeable future.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Stabilization PeriodInitially, analysts believed the ban on cruises was a temporary reaction to the coronavirus — one that would be lifted soon. With countries such as China, Taiwan, and South Korea controlling the virus within a couple of months, it seemed plausible Western countries would also come out of the pandemic within a few months. However, now it seems that the timeline is likely to lengthen moving forward. Unfortunately for RCL, the U.S. and European markets are the bulwarks of its revenues. * 7 Stocks to Buy That Have Nothing But Upside In Their Future Most Western countries have not recommended wearing masks in public. The fixation with social distancing and the medical, rather than the sociological, benefits of wearing masks is likely to continue in these countries, making it extremely difficult for cruise companies to return this summer.Furthermore, a typical cruise itinerary covers a variety of destinations, which further complicates matters. Most of those destinations are likely to implement mandatory quarantine for foreign arrivals. Therefore, it seems that cruise lines cannot return to normalcy until the virus is near eradication. That can only happen if a vaccine is widely available for the disease.Though details about the resumption of business are unclear, booking volumes for the next season are looking good. RCL's management states that "Although still early in the booking cycle, the booked position for 2021 is within historical ranges when compared to the same time last year." Additionally, 55% of customers have chosen to go with a cruise credit instead of a cash refund. Worrying Liquidity PositionBefore the pandemic, RCL was considered to be somewhat of a growth company. Revenues were increasing at a healthy rate each year, and gross margins averaged 42.6% over a five-year horizon. It was the best performing cruise company, with a higher average return on equity than its main competitors Norwegian Cruise Line Holdings (NYSE:NCLH) and Carnival Corporation (NYSE:CCL). With a substantial increase in net income each year, the company adequately plowed back a significant portion of its earnings to expand and upgrade its fleet.However, on the liquidity front, it is an entirely different story. Financial leverage has averaged 2.42 for the past five years, which is significantly higher than the industry average. In addition, the company has struggled with its short-term liquidity, as its current liabilities have outpaced current assets for the past five years. With everyone rechecking their books for any excess debt these days, the numbers don't instill confidence.RCL closed April with $2.3 billion in cash and cash equivalents and has added a $150 million senior secured credit facility in May. RCL and other cruise companies have been unsuccessful in getting any relief from the U.S. government, and have turned to countries such as Germany, who are offering debt holidays for a year. With roughly $2.45 billion in cash equivalents and the monthly cash burn at $250 million, the company can survive approximately ten months without revenue. RCL Stock ValuationCruise line companies have witnessed a massive decrease in their stock price since last year. RCL stock is down 70% from the previous year, while Norwegian Cruise Line and Carnival are down 79% and 72%, respectively. It currently has an earnings rating of 4, which is 10% lower than the industry average and 62% lower than the S&P 500 index average.According to Refinitiv, in the past 90 days, the consensus price target for RCL has decreased from $143 to $79.10, a loss of -44.7%. However, this price is roughly 107% higher than the current price at $38.Stock valuation using the P/E ratio suggests that the current price is in line with the earnings multiple. Therefore, the significantly high price estimates are surprising. Perhaps the feeling is that RCL will be able to fend off the crisis and return to safer waters in September. However, even if the company manages to mount a comeback in the summer, demand is not likely to return to the pre-pandemic levels until a vaccine is made widely available. Final WordCovid-19 has turned the tables on an otherwise profitable business in the Royal Caribbean Cruises. RCL has a couple of billion dollars to help keep it afloat until demand returns to the pre-pandemic levels. However, it seems that the company's primary target markets are in for the long haul with the pandemic.Executives are positive about returning to the seas this summer, but at the current rate, it seems unlikely. Nonetheless, with its current valuation and a proven track record of generating higher returns than the industry, it could be an excellent time to grab the stock at a bargain. However, with the uncertainty surrounding the crisis, I would probably play the waiting game until things become clearer.As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post RCL Stock Is Swimming in Troubled Waters appeared first on InvestorPlace.

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  • ASX 200 up 0.25% this week, CBA reveals Q3

    ASX 200 News

    The S&P/ASX 200 Index (ASX: XJO) went up 0.25% this week. In normal times this would have been a fairly volatile week, but it was quiet compared to March.

    Australia (and other countries) are announcing the lifting of restrictions as officials are getting more confident with the coronavirus. But there is trouble brewing between China and Australia.

    Xero Limited (ASX: XRO) was a poor performer within the ASX 200

    The cloud accounting software business reported its FY20 result this week. But the Xero share price fell 10% on Thursday and Friday after reporting.

    The ASX 200 company reported Xero that free cash flow increased by 320% to NZ$27.1 million. Net profit after tax (NPAT) came in at $3.3 million, an improvement from the NZ$27.1 million loss in FY19.

    Whilst Xero reported solid growth numbers in FY20, the early trading in FY21 has showed that Xero is being affected like most other companies. The uncertainty is why Xero was unable to provide guidance for FY21.

    Commonwealth Bank of Australia (ASX: CBA)

    Australia’s biggest ASX 200 bank revealed its third quarter update this week.

    Its March 2020 quarter showed cash profit was down 44% compared to the first half of FY20’s quarterly average. It announced an additional credit provision of $1.5 billion relating to the coronavirus.

    Both the statutory net profit after tax and cash profit came in at $1.3 billion. The CBA share price rose by almost 2% on Wednesday.

    The major ASX 200 bank also announced that it had agreed to sell a 55% stake in Colonial First State (CFS) for $1.7 billion. CBA will retain the other 45%. The sale price represents a multiple of 15.5x CFS’ pro forma net profit after tax (NPAT) of approximately $200 million. 

    Altium Limited (ASX: ALU)

    The ASX 200 technology company announced another coronavirus update this week.

    since the last market update in early April, it’s anticipating some headwinds due to coronavirus impacts in the US and Western Europe.

    May and June are typically the strongest months of the year for closing sales. So it’s going to cause problems for Altium’s FY20 result with the cash preservation priorities of small and medium size businesses affecting Altium’s sales. But Altium did say that engineers are still working on prototype designs. The electronics industry is still holding up relatively well.

    In response to the problem, Altium has launched ‘attractive pricing’ and extended payment terms to drive volume.

    Amid all of this share market volatility there are a lot of opportunities out there. These are some of the best I’ve seen.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

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    Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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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  • 5 Cheap Foreign Stocks That Are Perfect for Dividend Investors

    5 Cheap Foreign Stocks That Are Perfect for Dividend InvestorsI wanted to find five foreign, profitable companies that investors would find worthwhile. They would have to be cheap stocks with low price-earnings ratios and high dividend yields. The idea is that by diversifying a portion of your portfolio in non-U.S. stocks, you will enhance your overall returns.Often, foreign equities provide a return that is not correlated with U.S. stocks. At least, that is the theory. There are some significant drawbacks. I have managed non-U.S. equity portfolios on the institutional side for a good number of years and am well familiar with these issues.For one, non-U.S. stocks are subject to currency fluctuations. When the dollar rises, the U.S. dollar return on non-U.S. equities tends to lag. However, I have learned that this effect tends to recycle over a number of years and sort of washes out.InvestorPlace – Stock Market News, Stock Advice & Trading TipsA second issue is that often, non-U.S. stocks pay dividends just twice a year. This is because the vast majority of foreign companies only report their earnings semi-annually. However, the larger U.S. listed American Depository Receipts (ADR) or American Depository Shares (ADS) tend to report quarterly and pay their dividends that way. This occurs either because U.S. holders are a big percentage of the share base, or the company perceives that its stock price is "made" in the U.S.Moreover, another issue is that many non-U.S. companies will pay their dividends out as a percentage of their semi-annual earnings. In other words, the dividends paid each year can fluctuate, based on profits. U.S. companies tend to pay out a steady dividend that increases over time. I have learned again that the larger non-U.S. stocks have started following the steady dividend approach.The following five cheap stocks are worthwhile investments. They all have higher-than-normal dividend yields that tend to be paid quarterly. They also have low price-earnings ratios.Here are five cheap stocks — that pay nice dividends — to buy now: * BP Midstream Partners (NYSE:BPMP) * Publicis Groupe (OTCMKTS:PUBGY) * Rio Tinto Group (NYSE:RIO) * Vodafone Group (NASDAQ:VOD) * Total (NYSE:TOT)Let's dive in and look at these foreign, cheap stocks more closely. Foreign Cheap Stocks: BP Midstream Partners (BPMP)Source: Pavel Kapysh / Shutterstock.com Dividend Yield: 12.5%BP (NYSE:BP) is a profitable foreign stock with a nice 10.9% dividend yield. But I thought I would focus on one of its spinoff companies, BP Midstream Partners. BPMP has a higher dividend yield than BP.BPMP is a U.S.-listed master limited partnership (MLP) that is focused solely on the midstream portion of the oil and gas life cycle. That involves running oil and gas onshore and offshore pipelines and terminals.Source: Mark R. Hake, CFA Now that more companies are looking to store oil and gas, its assets are close to fully occupied.BPMP declared a quarterly dividend on April 15 for 34.75 cents per share. That works out to an annualized dividend of $1.39. At today's price of $11, the stock yields 12.5%. This is higher than BP's distribution yield of just under 11%.The company reported excellent results for Q1 on May 8. It says that the quarterly distribution is covered 1.17 times by its earnings. Moreover, BPMP says it is targeting a 5% increase in its distributions to shareholders in 2020 over 2019. * 7 Stocks to Buy That Have Nothing But Upside In Their Future At 7.3 times earnings, with a 16.8% free cash flow yield and a 12.5% dividend yield, BPMP is very profitable and cheap. Investors should take a close look at the company. Publicis Groupe (PUBGY)Source: shutterstock.com Dividend Yield: 4.9%Next on my list of cheap stocks is Publicis Groupe. This is a French advertising, communications and digital marketing company. Publicis has its tentacles in a lot of related areas like media, technology, healthcare communications and consulting services. It owns famed companies Saatchi & Saatchi and Leo Burnett.Publicis Groupe trades on the over-the-counter market. Its dividend yield has been about 9%, and the forward price-earnings ratio is about 7. So it is a profitable company, but a cheap stock.Source: Mark R. Hake, CFA On April 13, Publicis reported its revenue, which was up 17%, although it included the effects of the acquisition of Epsilon. Its organic growth was down by 2.9% over last year. The company did not report its earnings, which apparently are done on a semi-annual basis.In addition, Publicis Groupe decided to cut its dividend by 50% to 1.15 euros. This works out to about 31.12 cents per ADR.There are four PUBGY ADRs per French ordinary share. As a result, PUBGY has a dividend yield of 4.9%. The company said it will pay the dividend in September.So Publicis Groupe is a cheap and profitable foreign stock with an above-average dividend yield. Rio Tinto Group (RIO)Source: BalkansCat / Shutterstock.com Dividend Yield: 8.4%Rio Tinto is a $74 billion mining company based in London. It produces iron ore, bauxite, copper, gold, silver, aluminum and a host of other commodities.Last year, Rio Tinto started paying dividends four times a year. It is still not clear that it will continue with this practice. I suspect it will, as there does not seem to be an announcement to the contrary. Based on last year's dividend of $3.82 per share, RIO stock yields 8.4%.Source: Mark R. Hake, CFA Moreover, the company has a website section showing consensus financial information, including production, revenue and earnings estimates by all its sell-side analysts. This is not allowed by U.S. regulators for U.S. stocks, for no good reason. But it is fairly common for foreign stocks under looser financial information regulations.Based on this I estimate that earnings will be $5.04 per ADR this year. The company just needs global lockdowns to relax, or at least ease up.This will increase the demand for global committees, especially iron and copper. As demand rises, the price of these commodities will increase and the company will make more money.This puts the stock at a very cheap multiple of just 9 times earnings. So, combined with the 8.4% dividend, RIO stock offers very good value for investors. Vodafone Group (VOD)Source: Photos by D / Shutterstock.com Dividend Yield: 6.6%Vodafone is a telecom and cable TV company based in the United Kingdom. The company has a $43.8 billion market value and its ADR is listed on the Nasdaq Exchange.VOD stock has a very high dividend yield at 6.6% and is quite attractive to investors at this level. It pays the dividend twice a year. Vodafone kept its final dividend level with last year in its earnings announcement on May 12.Source: Mark R. Hake, CFA This requires a little explanation. First of all, Vodafone is like most other UK stocks that report their earnings and dividends twice a year. But for some reason, even though VOD's earnings are in pounds, it pays out the dividend in eurocents.So for this fiscal year ending March 31, the Vodafone annual dividend was kept stable at 9 eurocents per share. Now since there are 10 ordinary shares for every one VOD ADR, and since the exchange rate is $1.0823 per euro, the U.S. dividend per VOD ADR is about 97 cents. That makes the annualized yield about 6.6%.To make things more complicated, the upcoming final dividend (half of the total dividend, since an interim dividend was already paid) is set at 4.5 eurocents per ordinary share. This will be paid on Aug. 7, 2020. This effectively makes the upcoming payment a dividend yield of about 3.3%. This depends on the exchange rate when the ADR payment is set.Vodafone's earnings for the year ending March were reasonably good. The bottom line is that the company expects its FY 2021 free cash flow to decline slightly from 5.7 billion pounds to 5.4 billion pounds. As a result, I expect the dividend will be kept level.This makes VOD stock very attractive as a stable, well-covered and high-dividend play for income investors. Total (TOT)Source: MDOGAN / Shutterstock.com Dividend Yield: 8.8%Total is a French oil and gas company. Last year the company paid four dividends to its shareholders, although it calls three of them "interim" dividends and the last one a "final" dividend.This past year, the company increased its dividend 5% to 2.68 euros per share. This works out to $2.92 per ADR.Source: Mark R. Hake, CFA As a result, the stock has a very attractive dividend yield of 8.8% for investors.I estimate that the stock is also cheap at just 7.4 times earnings. In its most recent Q1 earnings presentation, Total said its break-even level is at $25 per barrel of oil.So I expect the company will be able to stay profitable this quarter. As economic activity picks up, the company will be able to make more money once the price of oil rises.This is an attractively priced stock at below 8 times this year's earnings, based on the company's recent earnings results.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide, which you can review here. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Cheap Foreign Stocks That Are Perfect for Dividend Investors appeared first on InvestorPlace.

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  • Top brokers name 3 ASX 200 shares to sell next week

    ASX shares to avoid

    Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

    Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

    Commonwealth Bank of Australia (ASX: CBA)

    According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted their price target on this bank’s shares slightly to $56.40. Goldman notes that Commonwealth Bank’s third quarter cash earnings of $1.3 billion is running well short of its second half expectations because of provisions. In light of this and its weakening balance sheet, the broker sees little reason that its shares should trade at such a premium to its peers and has reiterated its sell rating. The Commonwealth Bank share price ended the week at $59.60.

    Stockland Corporation Ltd (ASX: SGP)

    A note out of Citi reveals that its analysts have retained their sell rating on this property company’s shares. According to the note, the broker is concerned that its key residential and retail segments are facing headwinds from the pandemic. It notes that Stockland’s residential segment has seen a sharp decline in deposits and its retail portfolio is experiencing speciality sales declines. The Stockland share price was trading at $2.70 on Friday.

    Xero Limited (ASX: XRO)

    Analysts at UBS have retained their sell rating and lowly $58.50 price target on this business and accounting software provider’s shares. According to the note, Xero’s maiden profit in FY 2020 fell short of its expectations. In addition to this, while it feels its growth strategy is sound, it believes there is uncertainty around its short term prospects. Furthermore, it feels the risk/reward on offer on a long term basis is unfavourable at these levels. Xero’s shares ended the week at $75.32.

    Those may be the shares to sell, but here are the dirt cheap shares which have been given buy ratings.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

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    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 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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  • Wyndham CEO: In June ‘demand for leisure travel is as strong as it was in 2019’

    Wyndham CEO: In June 'demand for leisure travel is as strong as it was in 2019'The travel and tourism industry was heavily impacted by the coronavirus, but it may begin to see a turnaround as consumers look to travel in the coming summer months. Michael Brown, CEO of Wyndham Destinations, joins Yahoo Finance to discuss.

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  • Here’s how to create a $1 million ASX portfolio by investing $1,000 a month

    Investor in white shirt dreaming of money

    Building an ASX portfolio of shares with a value of a million dollars is hard, yet doable. What you need is the right mindset, the right investments, the right amount of time and the secret ingredient of compound interest!

    Let’s get into the nuts and bolts of a million-dollar portfolio.

    The path to a million

    If you were building a portfolio with monthly $1,000 contributions, it would take just over 61 years to accumulate a million-dollar portfolio if you used term deposits and savings accounts that pay a 1% interest rate.

    But that’s where ASX shares come in.

    See, by investing in growth assets like shares, you can get a return that’s far above what a high-interest bank account will provide these days.

    Let’s take a simple ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) has delivered an average return of 7.63% per annum since its inception in 2009.

    Investing your $1,000 a month in this ETF will shorten these 61 years to just 26.5 years if we assume the same rate of return and reinvest all dividends.

    But let’s say you learn all about investing, take some of the lessons we Fools try and divulge for good investing practice and manage to invest for a higher return than a broad market ETF – let’s say we’re aiming for a 10% return per annum.

    Then, the 26.5 years will be whittled down to 22.5.

    If you manage an exceptional 15% per annum? It’s 17.5 years, and on and on it goes.

    Now you can understand how the great Warren Buffett became a billionaire over his life by managing a compounded rate of return above 20% per annum!

    How hard is it to beat the market?

    Of course, beating the market over 20 years is difficult – most ASX investors don’t manage it. But if you find great companies, invest in them at a great price (or even just a good price), and don’t do anything silly (like sell the shares in a crash), you can do it.

    And you don’t even need to find too many winners – just one can be enough to propel an ASX portfolio to market-beating returns. Warren Buffett has 99% of his capital in just one company (Berkshire Hathaway), after all.

    And that’s how you can build a $1,000,000 ASX share portfolio by investing $1,000 a month.

    It’s no summer project, that’s for sure! Your success with investing will dictate just how long it will take. But for investors with the ambition and the patience, it can be done.

    For more ASX shares to consider in your own million-dollar portfolio, don’t miss the free report below!

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

    YES! SEND ME THE FREE REPORT!

    Returns as of 7/4/2020

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    Motley Fool contributor Sebastian Bowen 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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  • 3 top ASX dividend shares to buy next week

    money bag surrounded by gold coins, cash out

    With the cash rate at a record low of 0.25% and some tipping it to go even lower, the interest rates on offer with term deposits and savings accounts look set to stay lower for longer.

    In light of this, I believe income investors ought to consider investing in some of the high quality dividend shares on the ASX for income.

    Three that I would buy are listed below:

    Dicker Data Ltd (ASX: DDR)

    I think this distributor of information technology products would be a good option. It has been a very strong performer during the pandemic and recently reported a 36.3% increase in first quarter net profit before tax to $18.4 million. This has been driven partly by increasing demand for software and hardware to support working from home initiatives. As a result of this strong performance, the company advised that it plans to pay a fully franked dividend of 35.5 cents per share in FY 2020. This will be up 31% year on year and represents a fully franked 5.1% yield.

    Transurban Group (ASX: TCL)

    If you’re not in immediate need of income, then this toll road operator could be a good option. Due to the sharp reduction in traffic volumes on its roads during the pandemic, I suspect Transurban could scrap its final distribution in FY 2020. However, I feel it is worth being patient and expect its distributions to recover over the coming years as traffic volumes eventually normalise. I estimate that its shares offer investors distribution yields of 3.3% and 4.5% in FY 2021 and FY 2022, respectively. 

    Wesfarmers Ltd (ASX: WES)

    Wesfarmers is one of Australia’s leading conglomerates and the company behind countless recognisable brands. These include Bunnings, Kmart, Target, online retailer Catch, and Officeworks. The company also has exposure to the chemicals and industrials industries through a wide range of businesses. Combined, I believe Wesfarmers is well-positioned to grow its earnings and dividends at a solid rate over the coming years. At present I estimate that its shares offer a forward fully franked ~4% dividend yield.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all time high and paying a 6.7% grossed up dividend

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    *Returns as of 7/4/20

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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. 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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  • These small cap ASX shares could be stars of the future

    I think that having a little bit of exposure to the small side of the market can be a positive for a portfolio.

    This is because even blue chip companies such as Ramsay Health Care Limited (ASX: RHC) were small caps at one stage.

    Anyone that bought Ramsay’s shares in the early days and held onto them will have generated exceptionally strong returns.

    And although not all small caps will be success stories, there are a few that I feel have a good chance of going onto bigger and better things.

    Three small ASX cap shares worth watching very closely are as follows:

    Audinate Group Limited (ASX: AD8)

    Audinate is a digital audio-visual networking technologies provider. It has achieved very strong sales growth in recent years thanks to the increasing demand for its Dante product. This award-winning audio over IP networking solution is being used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. While the pandemic will inevitably impact its sales greatly, I believe its growth will accelerate once the crisis passes.

    ELMO Software Ltd (ASX: ELO)

    ELMO Software is a fast-growing cloud-based human resources and payroll software company. It provides a unified platform that allows users to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. It has been a strong performer over the last few years and I expect more of the same in FY 2020 and beyond. ELMO recently released its third quarter update and revealed quarterly cash receipts of $13.3 million. This was up an impressive 39.4% on the prior corresponding period. It brought its 12-month trailing cash receipts to $56.2 million, up 42.3% on the 12 months to March 2019.

    Volpara Health Technologies Ltd (ASX: VHT)

    A third small cap share to look at is Volpara Health Technologies. It is a provider of healthcare software that leverages artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. It has been growing at a very strong rate over the last few years thanks to its increasing market share in North America. And due to the growing popularity of its software with radiologists and recent acquisitions, I expect this positive form to continue for the foreseeable future.

    And here is a fourth ASX share which looks destined to generate strong returns for investors over the next decade. Now could be the time to go all in with it.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

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    Returns as of 6/5/2020

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    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 Elmo Software. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended Elmo Software and 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.

    The post These small cap ASX shares could be stars of the future appeared first on Motley Fool Australia.

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  • 3 ASX healthcare shares to buy for strong long-term growth

    blocks spelling health and wealth

    I am particularly interested in the ASX healthcare sector due to the growing number of high-quality companies that are now listed, many of which have seen strong share price growth over the past 5 years.

    In addition, I believe the demand for healthcare services is only going to grow over the next decade due to an ageing global population and continuing advances in healthcare treatments and technology.

    With that in mind, here are 3 of my top picks in the ASX healthcare space right now:

    Ramsay Health Care Limited (ASX: RHC)

    Over the past decade, global private hospital provider Ramsay has experienced strong revenue growth from its existing facilities, as well as growing through acquisitions and expanding into new markets. It has now achieved considerable size and scale, which therefore spreads its operating costs and provides it with a distinct competitive advantage in negotiations with health insurers.

    Ramsay has been impacted by the ban on non-essential surgeries across the countries in which it operates. However, with elective surgeries beginning to recommence in Australia, and with other markets likely to soon follow, it may merge from its troubles faster than anticipated.

    As one of the largest hospital providers in the world, with operations across 11 countries, I believe that Ramsay is well-positioned to capitalise on the growing need for healthcare services over the next decade.

    Cochlear Limited (ASX: COH)

    Cochlear has been significantly impacted by the coronavirus crisis as elective surgeries, such as those for cochlear implants, have been deferred across a number of countries in which it operates. This led to Cochlear raising $880 million from an institutional placement in late March.

    However, with the Cochlear share price taking a significant hit over the past few months, and the hope that elective surgeries may soon commence across a number of its markets, I believe now could be a good buying opportunity.

    As the proportion of the global population over the age of 65 continues to increase, I think the demand for hearing products and solutions over the next few decades will only rise.

    ResMed Inc (ASX: RMD)

    ResMed has evolved over the last 30 years to become one of the world’s leading sleep treatment companies. It is now a major US-based global company, employing more than 7,00 people worldwide.

    The company’s healthcare devices and cloud-based software solutions target sleep apnea and other respiratory conditions. Its global scale and breadth now provide it with a distinct advantage over its competitors. The company recently recorded an impressive 47% increase in net income during the third quarter of FY 2020.

    I believe that the strong demand for ResMed’s products is likely to continue over the next decade, driven by the largely untapped market of sleep apnea sufferers globally.

    For some more ASX shares that could be long-term winners, don’t miss the report below.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

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    See the 5 stocks

    Returns as of 7/4/2020

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    Phil Harpur owns shares of Cochlear Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Ramsay Health Care Limited, and ResMed Inc. 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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