Tag: Motley Fool Australia

If you’re looking for growth shares to buy then I think the healthcare sector is a great place to start.

This is because thanks to new technologies and favourable tailwinds, demand for healthcare services looks set to grow strongly over the next decade.

Two ASX growth shares in the healthcare sector that I would buy are listed below. Here’s why I like them:

Nanosonics Ltd (ASX: NAN)

The first ASX healthcare share to consider buying is this infection prevention company. I think Nanosonics has a very bright future ahead of it thanks to its industry-leading trophon EPR disinfection system for ultrasound probes. This system reduces the risk of ultrasound-related cross-infection and is clinically proven to kill the infectious high-risk cancer-causing human papillomavirus. 

And while I think this product alone could drive strong earnings growth over the next decade thanks to its sizeable market opportunity and growing recurring revenues, it will be joined by new products in the near future. Nanosonics is aiming to release a number of new products targeting other unmet needs. I believe these could give its earnings growth a major lift and drive the Nanosonics share price notably higher over the 2020s.

PolyNovo Ltd (ASX: PNV)

I think this exciting medical device company is another ASX healthcare share to buy. It is the company behind the increasingly popular NovoSorb technology. NovoSorb is a biodegradable material that was developed and CSIRO and can aid the repair of bone fractures and damaged cartilage, and in skin grafts.

I believe the NovoSorb Biodegradable Temporising Matrix (BTM) product in particular has enormous potential. It is a wound dressing intended to treat full-thickness wounds and burns and has a sizeable $1.5 billion market opportunity. As with Nanosonics, management isn’t resting on its laurels and is aiming to expand into other markets. It has its eyes on the hernia and breast treatment markets, which would add an additional $6 billion to its addressable market.

More reading

• Nanosonics and 1 more ASX healthcare share to buy and hold beyond 2025
• Why I think the Polynovo share price is a buy right now
• 3 exciting ASX growth shares to buy and hold until 2030
• ASX 200 drops 0.6%, Afterpay hits a new record
• PolyNovo share price higher on strong sales update

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 Nanosonics Limited and POLYNOVO FPO. The Motley Fool Australia has recommended Nanosonics 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 2 ASX growth shares to buy in the healthcare sector appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZpU7C1

The Afterpay Ltd (ASX: APT) share price is having a rare off day and is sinking notably lower on Tuesday.

The payments company’s shares are the worst performers on the S&P/ASX 200 Index (ASX: XJO) this afternoon with a 7.5% decline to $66.30.

Why is the Afterpay share price sinking lower?

Today’s decline appears to be due to profit taking in the technology sector following a similar move overnight on Wall Street’s technology-focused Nasdaq index.

The likes of Appen Ltd (ASX: APX), Xero Limited (ASX: XRO), and Zip Co Ltd (ASX: Z1P) are all falling heavily as well.

Overnight the Nasdaq index was up as much as 1.9% before ending the day 2.1% lower. Investors appear to have decided to take profit off the table shortly after the index broke through the 11,000 points mark for the first time.

And given the meteoric rise in the Afterpay share price over the last few months, I can’t say it is a surprise to see it fall more than most.

Even after today’s sizeable decline, the Afterpay share price is up a whopping 720% from its March low of $8.01.

Is it time to buy Afterpay shares?

Two brokers that are likely to see this share price weakness as a buying opportunity are Ord Minnett and Morgan Stanley.

Last week Ord Minnett placed a buy rating and $76.70 price target on the buy now pay later provider’s shares. This price target implies potential upside of 15.5% for its shares over the next 12 months.

Morgan Stanley is even more bullish and upgraded Afterpay’s shares to an overweight rating with a massive $101.00 price target.

If the company’s shares were to reach that lofty price target, it would mean a gain of just over 52%.

I would agree with these brokers and believe the weakness in the Afterpay share price could be an opportunity to invest. This is because I feel the company is well on its way to becoming a real force in the payments industry and capable of growing materially over the next decade.

Though, given the premium that its shares trade at, it might be best to restrict an investment to just a small part of your portfolio.

More reading

• New investors could invest $1,000 into these top ASX shares
• Why Afterpay, Altium, Northern Star, & Pushpay shares are sinking lower
• ASX 200 down 0.5%: Altium sales update, Afterpay tumbles, Breville shoots higher
• 2 high growth ASX 200 shares to buy with $10,000 amid the coronavirus pandemic
• Are these small cap ASX shares future tech stars?

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 and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen 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.

The post Afterpay share price sinks 7.5%: Is this a buying opportunity? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZtoyaN

The S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) remain in a vulnerable (and volatile) state and may present more buying opportunities in the future.

For investors seeking high quality ASX 200 dividend shares with consistent cash flows amid the COVID-19 crisis, here are 3 blue-chip shares to add to your watchlist. 

BHP Group Ltd (ASX: BHP) 

The iron ore spot price has soared to an 11-month high following strong Chinese steel demand and optimism over Chinese economic growth recovery. This spells good news for iron ore miners BHP, Rio Tinto Limited (ASX: RIO) and Fortescue Mining Limited (ASX: FMG), all of which are among the best ASX 200 dividend shares, in my view.

I would prefer BHP as the dividend play, given its diversified minerals portfolio compared to a pure iron ore play such as Fortescue. At the time of writing, BHP pays a fully franked dividend yield of 5.76%. The current elevated iron ore prices should see iron ore miners continue to be leading ASX 200 dividend shares for yield-hungry investors. 

WAM Capital Limited (ASX: WAM) 

On 8 July, WAM Capital announced a fully franked final dividend of 7.75 cents per share, bringing its FY20 fully franked full year dividend to 15.5 cents per share. This would equate to a dividend yield of approximately 8.1% at today’s share price.

Its market leading dividend payout follows its investment portfolio outperforming the ASX 200 by 4.4% during the 12-month period to 30 June 2020. WAM Capital’s top holdings as at 30 June 2020 include retailers such as Adairs Ltd (ASX: ADH), Bapcor Ltd (ASX: BAP) and BWX Ltd (ASX: BWX) and a mix of others in agriculture, healthcare and information technology.

WAM hasn’t cut its dividend for more than a decade and remains one of the most consistent and reliable ASX 200 dividend shares. 

JB Hi-Fi Limited (ASX: JBH) 

Retailers are emerging as strong ASX 200 dividend shares, given an increase in retail spending and time spent at home. As a result, JB Hi-Fi reported strong sales growth in the second half of FY20 in JB Hi-Fi Australia and The Good Guys with comparable sales increasing by 20% and 23.5%, respectively, on the prior corresponding period (pcp).

At this point in time, the group expects total net profit after tax to be in the range of $300 million to $305 million, an increase of 20% to 22% on the pcp. It currently pays a dividend yield of approximately 3.80%. Other retailers such as Adairs and Shaver Shop Group Ltd (ASX: SSG) may pay higher dividends, but I prefer JB Hi-Fi for its position as a market leader in the electronics space, and its consistent earnings. 

More reading

• Macquarie picks ASX stocks that can deliver positive earnings surprises next month
• Is the gold price too high for investing in ASX gold shares?
• 2 ASX shares I would buy for growth and income
• The difficulty of investing in shares right now
• Why the Fortescue share price rallied over 40% to a record high in 2020

Motley Fool contributor Lina Lim 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 3 blue chip ASX 200 dividend shares to buy in the next market correction appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iXacqK

Dividend shares on the ASX could be the best way to invest for the next period of the COVID-19 pandemic.

I think it’s quite interesting that large shareholders of both Afterpay Ltd (ASX: APT) and Pushpay Holdings Ltd (ASX: PPH) have recently decided to take some profit off the table. Those shareholders still own a majority of their shareholding, but the share prices of those growth businesses have run up very strongly over the last few months.

Dividend shares have not risen up as much. I think they’re worth looking at. Dividends are paid out of profit that the company has generated. Making profit is obviously better than losses. So I see profit as a sign of a business that has (hopefully) reached sustainability. 

This is what I’m looking for in dividend shares during COVID-19:

Dividend guidance

A business that has guided that it’s going to pay a dividend during this COVID-19 period is obviously attractive as a dividend share. For me, a high yield isn’t worth it if the dividend is just going to get cut when times get tough – that’s exactly when you may be relying on a dividend payment. I don’t think shares like Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) should be relied on as dividend shares.

I particularly like dividend shares that have guided that they will increase their dividend in the next result despite all of the economic impacts.

Some shares that have guided dividend increases for the upcoming reporting season are: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Duxton Water Ltd (ASX: D2O) and Rural Funds Group (ASX: RFF).

Defensive earnings

Profit is not a guaranteed thing, that’s why shares are riskier than cash in the bank. Profits are going to be volatile. Just look at how the statutory profit of BHP Group Ltd (ASX: BHP) or Commonwealth Bank of Australia (ASX: CBA) can change year to year.

I like to go for dividend shares that should be robust in difficult times like a recession. Or even a global pandemic.

Rural Funds is a good example because it receives regular rental income from its tenants. We still need to keep eating food, even during a pandemic.

A business like APA Group (ASX: APA), which supplies half of the country’s natural gas, can generate reliable cashflow and therefore fund a consistent distribution.

In the current world a business like Amcor Plc (ASX: AMC), which supplies flexible and rigid packaging, continues to see good demand and is expecting higher revenue, which should mean a solid dividend.

Dividend history

Dividend shares that have already built a solid history of dividend payments to shareholders will not want to disappoint shareholders.

It can be unhealthy for a business to unsustainably chase the image of ‘reliable’ dividends – just look at Telstra Corporation Ltd (ASX: TLS), it was paying all (or more) of its profit out each year as a dividend. Dividend cuts were inevitable because profits weren’t rising. So you need to find businesses which have sustainable dividends.

Some of the ASX dividend shares I’ve already mentioned have long dividend track records. APA Group has increased its distribution every year for a decade and a half. Soul Patts has increased its dividend every year since 2000.

Yield

Obviously a dividend share has to start with a decent dividend yield. I’m not exactly sure what counts as good yield these days. The official RBA interest rate is now just 0.25%.

At the current Soul Patts share price, it offers a grossed-up dividend yield of 4.25%.

Rural Funds’ share price translates into a FY21 distribution yield of 5.6%.

With the FY20 distribution yield, at the current share price APA offers a distribution yield of 4.6%.

Foolish takeaway

Dividend shares may be able to provide stability for your portfolio with all of the volatility. I’d be happy to buy Soul Patts shares and a few other dividend shares for my portfolio right now. But patience could also pay off. It may be best to wait for the next dip to buy some shares, particularly if you’re looking at growth shares. 

More reading

• 3 safe and strong ASX dividend shares to buy during the pandemic
• 3 top ASX 200 blue chip shares to buy
• The difficulty of investing in shares right now
• 3 ASX dividend shares raising their dividend like clockwork
• Why I would put excess funds into ASX dividend shares instead of a savings account

Tristan Harrison owns shares of DUXTON FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Amcor Limited, RURALFUNDS STAPLED, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and APA Group. The Motley Fool Australia has recommended DUXTON FPO and PUSHPAY FPO NZX. 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 What I’m looking for in dividend shares during COVID-19 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2CbZFY2

Earnings season starts in August when most ASX shares will be delivering financial and annual reports. These will disclose not only how each company has made it through the pandemic so far, but also what they are planning to do in FY21. I am pretty sure that this is going to be the strangest earnings season in my investing career.

ASX shares expecting good earnings

August is likely to bring positive results from consumer staples like Coles Group Ltd (ASX: COL) and Inghams Group Ltd (ASX: ING). Both of these companies are trading at price multiples of around 20, so the market clearly expects good things from them. If results are not strong, then their shares could be sold off. 

Investors are also likely to expect strong results from eCommerce companies such as Kogan.com Ltd (ASX: KGN), which posted a 100% increase in sales during the lockdown months. Kogan’s profit for the same period also grew by 130%. Other companies with strong eCommerce channels include Temple & Webster Group Ltd (ASX: TPW) and City Chic Collective Ltd (ASX: CCX).

Possible earnings surprises

The ASX shares likely to get solid share price rises this earnings season are going to be those that have done very well in spite of the year we have all had.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman has already given us a bit of a view into its financials. On 23 June, the company announced unaudited results of a 20% increase in profit before taxes for FY20. It is one of the many ASX shares to report an increase in electronics sales, in particular, due to the work from home phenomenon. In a trading update earlier in June, it reported increases in Australia and Ireland through 2H FY20. International sales also benefited from an Australian dollar at lower than historical averages.

Harvey Norman is currently trading at a price-to-earnings ratio (P/E) of 10.83 and a trailing 12 month dividend yield of 5.96%. I think it will surprise investors during earnings season.

DEXUS Property Group (ASX: DXS)

Like many real estate ASX shares or real estate investment trusts (REITs), Dexus is trading at a historically low P/E ratio. In fact, lower than it has been for the past 7 years. 

Dexus is a multi-sector property company. In the company’s 1H FY20 results, it disclosed that it manages $38 billion in real estate and owns $16.8 billion in office and industrial properties. The company’s properties have a weighted average lease expiry (WALE) of 4.4 years. This is basically an average duration of each lease. Dexus also has 97.2% occupancy for its office properties and 96% for its industrial properties. 

Dexus has a current market valuation of $10.13 billion, which is 40% lower than its property portfolio value. It is presently selling at a P/E of 6.55 and is paying a trailing 12 month dividend of 5.41%. I think this ASX share will also surprise investors at earnings season, and it looks to me to be a good investment, in any case.

Credit Corp Group Limited (ASX: CCP)

Credit Corp is a little different to the other two ASX shares discussed. Credit Corp buys purchased debt ledgers (PDLs) comprised of distressed consumer debt from Australian and New Zealand banks, finance companies, and telecommunication companies. It then proceeds to collect on these debts at a lower repayment rate. It also provides predominantly ‘payday’ loans.

This is not a company you want a call from! 

On 13 July, Credit Corp announced that it flagged an impairment of approximately $65 million, leaving it with a net profit after taxes (NPAT) of ~$10-$15 million. The company is actively negotiating debt repayments, and has halved the approval rate of its own loan products. 

I think there are two ways this can go. Firstly, the company could report slightly higher than expected NPAT, in which case the share price may see a rise. Secondly, the government could announce an extension to the current financial supports, thus allowing repayment plans to proceed. This would also lead to a potential rise in the Credit Corp share price. Either way, I think Credit Corp is in a better position than it appears, heading into earnings season.  

More reading

• 3 safe and strong ASX dividend shares to buy during the pandemic
• Why Breville, Credit Corp, Pendal, & Whitehaven shares are charging higher
• Breville share price surges as top broker reckons it’s worth $62 a share
• The difficulty of investing in shares right now
• These 2 ASX retail shares have surged higher in 2020

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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.

The post 3 ASX shares to buy before earnings season appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2B1Coru

The impending profit reporting season promises to be like no other as disruption from the COVID-19 attack will impact on almost every S&P/ASX 200 Index (Index:^AXJO) stock.

I am bracing for a higher than normal number of surprises next month when ASX companies hand in their report cards.

It might surprise some of know that it won’t all be negative surprises even as a second wave of coronavirus infections forced another shutdown in large parts of Victoria.

More negative than positive surprises

The reality is that most businesses won’t have a much clearer understanding of what lies ahead now than in the early stages of the outbreak.

But what the August reporting season will allow management teams to do is to rebase expectations when it comes to earnings growth and dividends.

This is why I think we will get more negative surprises than positives this time, compared to past seasons when the ratio or “misses” and “beats” are roughly equal.

ASX stocks that can beat the street

But being a glass-half-full kind of guy, I rather talk about the unexpected positives than negatives. On this happy note, the analysts at Macquarie Group Ltd (ASX: MQG) have picked their “counter consensus calls”.

These are stocks where the broker’s FY20 earnings per share estimates are above what most other brokers are forecasting.

If Macquarie is proven right, these stocks could outperform next month as other brokers rush to lift their earnings forecasts for FY21, if not beyond.

Mechanics behind profit upgrades

What does underestimating FY20 earnings have to do with future profits you ask? Profit projections are usually based on a percentage increase (or decrease) over the previous year.

If earnings in the latest past year is higher than expected, then the following year’s earnings number will be higher even if the percentage rate is unchanged.

So, even if an analyst isn’t more bullish on the outlook of a company, he/she will still be compelled to lift the valuation of a stock.

Resource stocks well placed to be profit heroes

Resources stocks dominate Macquarie’s list of potential reporting season heroes. Iron ore miners Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) are included in this group.

Copper miner OZ Minerals Limited (ASX: OZL) and energy heavyweights Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL) and Oil Search Limited (ASX: OSH) also make the cut.

Other ASX stocks that can outperform

Just be aware that resource companies issue quarterly production updates, and the June updates are due this month. This means if you waited till August to act, the “surprise” may not be so surprising by then.

Outside of resources, ASX stocks that Macquarie believes could beat expectations include Aristocrat Leisure Limited (ASX: ALL), Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) and SEEK Limited (ASX: SEK).

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• ASX 200 down 0.5%: Altium sales update, Afterpay tumbles, Breville shoots higher
• Breville share price surges as top broker reckons it’s worth $62 a share
• Is the Star Entertainment share price a good buy right now?
• Is the gold price too high for investing in ASX gold shares?

Motley Fool contributor Brendon Lau owns shares of Aristocrat Leisure Ltd., OZ Minerals Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia has recommended Ramsay Health Care Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Macquarie picks ASX stocks that can deliver positive earnings surprises next month appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2WfjlBc

The Sydney Airport Holding Pty Ltd (ASX: SYD) share price hasn’t had a great year so far, falling 34% in the first 6 months of the year. In comparison, the All Ordinaries Index (ASX: XAO) is down around 12%, year to date.

Sydney Airport is well known for being a reliable high yield stock. However, the global COVID-19 pandemic has sent shock waves through the travel industry and shares of the nation’s largest airport have been sent tumbling lower. Sydney Airport shares even went lower than $5 in mid-March, sinking to a level they haven’t seen since late 2014.

What caused the Sydney Airport share price to fall?

The Sydney Airport share price was up for the first month of this year, following on from its all-time highs in late 2019. The share price continued to lift following the release of strong full year results in late February. Some highlights from the company’s 2019 full year results include:

• Revenue growth of 3.5% on 2018
• Earnings before interest, tax, depreciation and amortisation lifted by 4%
• Capital expenditures were expected to be between $350 million to $450 million in 2020, up from $300 million for 2019.

However, this was about where the good news ended. In a sign of things to come, traffic performance for February showed a dramatic 16.8% fall in month-over-month growth of international passengers due to rising COVID-19 concerns. In the weeks that followed, the Sydney Airport share price fell 37% to its 52-week low of $4.37.

These results were just a precursor to a release 13 days later, which outlined the impact of the coronavirus pandemic on Sydney Airport’s finances. Some of the key takeaways from that announcement were as follows:

• Total funds available of $2 billion
• $1.3 billion of debt due in the next 12 months and another $200 million due by November 2021
• Strong cutbacks on discretionary spending.

Remarkably, following this undesirable release, the Sydney Airport share price rebounded strongly to $6.11. 

In late April, another $850 million dollars of funds were established from debt facilities to provide insurance during the pandemic. The half year dividend was also suspended, due to the uncertain trading outlook of the company. This may worry investors prioritising income as the forward dividend yield looks unlikely to match the trailing yield.

However, hopes of recovery from the pandemic sent the Sydney Airport share price surging through mid-June, hitting highs of over $7.

Subsequent updates confirmed the low passenger numbers, with the most recent results for May showing a 49.4% decrease in customer traffic.

Foolish takeaway

Since reaching its highs in mid-June, Sydney Airport shares have been on a slide as a rising number of COVID-19 cases continue to worry the travel sector. The share price slumped to a $5.67 finish at the end of June.

In further bad news for investors, the Sydney Airport share price continues to fall, dropping to a lowly $5.35 at the time of writing. Nevertheless, the share remains volatile and investors will be hoping for the easing of COVID-19 restrictions to see it start to regain some of those losses.

More reading

• ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide
• Why I would buy CBA and this high yield ASX dividend share
• Why Sydney Airport and 2 other ASX shares could surprise this reporting season
• 2 high quality ASX dividend shares to buy today
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000

Motley Fool contributor Daniel Ewing owns shares in Sydney Airport (ASX:SYD). 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 Why the Sydney Airport share price lost 34% in the first half of 2020 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3h8KXjJ

With the coronavirus spike in Victoria threatening to derail Australia’s economic recovery, the near-term payments of a number of popular dividend shares could be impacted.

In light of this, if you’re looking to buy dividend shares right now, I think the safe and strong ASX dividend shares listed below could be the ones to buy.

Here’s why I would buy them for income:

Coles Group Ltd (ASX: COL)

I think Coles would be a great ASX dividend share to buy. It appears well-positioned to continue its growth in FY 2020 and FY 2021 despite what happens in the wider economy. This is thanks to its defensive qualities and strong market position. Looking further ahead, I believe its long term outlook is very positive due to its refreshed strategy and focus on automation. Combined with its long track record of achieving same store sales growth, I expect this to lead to solid earnings and dividend growth throughout the 2020s. Based on the latest Coles share price, I estimate that it provides investors with a fully franked 3.7% FY 2021 dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider buying is Rural Funds. Due to the quality of its assets and their ultra-long tenancy agreements, I believe this agriculture-focused property group is well-positioned to continue growing its distribution during the pandemic and beyond. In fact, Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.4% and 5.65%, respectively.

Telstra Corporation Ltd (ASX: TLS)

A final ASX dividend share to consider buying is Telstra. I think the telco giant is a great option for investors due to its defensive qualities and generous dividend yield. At the height of the pandemic, Telstra reaffirmed its guidance for FY 2020. This includes its free cash flow guidance, which is of course important for dividend payments. Based on this guidance, I believe its current dividend is sustainable and will be paid as normal this year. And with the Telstra share price currently changing hands at $3.47, this equates to an attractive fully franked 4.6% dividend yield.

More reading

• Why I would buy Telstra and these ASX dividend shares
• These ASX dividend shares will help you beat low interest rates
• a2 Milk and 1 other quality ASX share to buy right now
• The Wesfarmers share price gets support from spin-off rumours
• ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 3 safe and strong ASX dividend shares to buy during the pandemic appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2OnRESp

The Neuroscientific Biopharmaceuticals Ltd (ASX: NSB) share price is up 20% today on the back of an ASX announcement about its lead compound EmtinB. In a preclinical study, the compound demonstrated positive preliminary results in a Multiple Sclerosis (MS) model. In this study, EmtinB was assessed against the leading therapeutic treatment for MS, Copaxone. 

Copaxone generated peak sales of approximately US$4 billion in revenue in a market approximately worth in excess of US$20 billion. 2.3 million patients are suffering from MS globally.

What is Multiple Sclerosis?

According to healthline, “MS is a chronic illness involving your central nervous system. The immune system attacks myelin, which is a protective layer around nerve fibres. This causes inflammation and scar tissue, or lesions. This can make it hard for your brain to send signals to the rest of your body”. 

What did the study find?

An extension of the concluded study results announced on 18 March 2020 demonstrated that EmtinB had a highly significant positive effect on the proliferation and differentiation of the myelin-forming cells of the central nervous system.  

Additionally, in the current study, EmtinB significantly increased myelin formation by greater than 30% at 150 ug/ml concentration. In comparison, the leading marketed drug, Copaxone, demonstrated myelin formation greater than 25% at 120 ug/ml.

Neuroscientific Biopharmaceuticals CEO and Managing Director, Matthew Liddelow, commented “These results represent a potential breakthrough in the treatment of MS as there are currently no approved therapeutic drugs available to patients that have demonstrated the ability to regenerate myelin in the central nervous system”.

The company’s full report of the study is expected to be available before the end of July.

About Neuroscientific

According to its website, the company’s vision is to transform how the pharmaceutical industry approaches the understanding and treatment of neurodegenerative disease. It believes no other disease area holds as much need or as much promise for medical breakthroughs as neuroscience. 

Prior to today’s announcement, the Neuroscientific share price had fallen roughly 23% in the last year. However, the positive result has sent the price soaring today to as high as 30 cents per share at one point. At the time of writing, the company’s share price had edged back to 24 cents, giving the group a market capitalisation of $18.81 million. 

It will be interesting to see the full report of the study that is expected to be released at the end of July. 

More reading

• Macquarie picks ASX stocks that can deliver positive earnings surprises next month
• Why the Sydney Airport share price lost 34% in the first half of 2020
• 3 safe and strong ASX dividend shares to buy during the pandemic
• Leading brokers name 3 ASX 200 shares to sell today
• Chart: the 4 ways Wesfarmers Ltd makes money

Motley Fool contributor Matthew Donald 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 This ASX biotech share is up 20% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Cbj5fH

On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX 200 shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of Citi, its analysts have downgraded this gold miner’s shares to a sell rating with an improved price target of $5.60. Although the broker has increased its estimates for the gold price, it isn’t enough for it to take a positive view on Evolution. It feels that its shares are overvalued in comparison to its peers and sees better value elsewhere in the sector. The Evolution share price is trading at $5.94 this afternoon.

Netwealth Group Ltd (ASX: NWL)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this investment platform provider’s shares to $6.80. This follows the release of its funds update for FY 2020 last week. Although the broker acknowledges that Netwealth had a strong finish to the year, it remains concerned about margin compression in FY 2021 and FY 2022. In light of this, it feels investors should be taking profit after some strong gains over the last few months. The Netwealth share price is changing hands for $11.21 on Tuesday.

Platinum Asset Management Ltd (ASX: PTM)

Another note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this fund manager’s shares to $3.00. Citi was pleased to see Platinum’s fund outflows soften and the company earn some performance fees at long last. Nevertheless, it notes that the performance of its key fund is underwhelming and appears concerned this could weigh on fund inflows in the near term. The Platinum share price is trading at $3.90 this afternoon.

More reading

• Macquarie picks ASX stocks that can deliver positive earnings surprises next month
• ASX 200 down 0.5%: Altium sales update, Afterpay tumbles, Breville shoots higher
• Breville share price surges as top broker reckons it’s worth $62 a share
• Is the Star Entertainment share price a good buy right now?
• Is the gold price too high for investing in ASX gold shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Netwealth. 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 Leading brokers name 3 ASX 200 shares to sell today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZqeU8N