Tag: Motley Fool Australia

The Etherstack PLC (ASX: ESK) share price is going through the roof today after the company announced an agreement with electronics giant Samsung.

After closing at just 12 cents yesterday, Etherstack shares are currently changing hands at $1.20 (at the time of writing) – a monumental 900% gain.

About Etherstack

Etherstack is a wireless technology company that specialises in developing, manufacturing, and licensing mission-critical radio technologies for wireless equipment manufacturers and network operators across the globe.

The company has a particular focus on the public safety, defence, utilities, transportation, and resources sectors.

Why is the Etherstack share price going nuts?

This morning, Etherstack revealed it has signed a global teaming agreement with Samsung Electronics for public safety communications.

Under the agreement, the companies will join forces to deliver mission-critical push-to-talk (MCPTT) over long-term evolution (LTE) solutions to telecommunications carriers and governments around the world. End users will include first responders such as police officers, firefighters, and ambulance officers.

The partnership will utilise Etherstack’s digital land mobile radio softswitching technologies, embedded within Samsung’s advance network solutions.

MCPTT over LTE is an emerging cellular standard that provides public safety-grade push-to-talk solutions within 4G and 5G cellular networks.

According to Etherstack, demand for MCPTT services and equipment has been steadily growing in the past few years and is expected to rise rapidly over the next 36 to 48 months.

Terms of the deal

In a follow-up ASX announcement released at midday today, Etherstack noted it will derive revenue from this agreement when the 2 companies together supply technology to Samsung’s customers.

The agreement is expected to have an initial period of 2 years and contains conditions under which it may be extended for a further 2-year period.

Commenting on the partnership, Wonil Roh, senior vice president and head of product strategy, networks business at Samsung, said:

“We recognised Etherstack’s unique technologies and experience in the global LMR market, so they were the obvious choice to partner with in the MCPTT market.”

Meanwhile, Etherstack chief executive, David Deacon, said:

“Etherstack has been quietly working with Samsung over the past twelve months developing secure and efficient solutions to integrate public safety networks used by first responders to next generation cellular networks.”

At the time of writing, Etherstack has a market capitalisation of around $136 million. Prior to today, this figure stood at just $14 million. If you’d rather invest in larger and less speculative companies, check out the ASX shares in the free report below.

More reading

• Tax time 2020! 3 ways to get the most bang for your buck
• ASX stock of the day: Avita Therapeutics share price climbs 8.4% as company redomiciles
• Morgans picks the best FY21 ASX buys for the COVID-19 world
• What does the future hold for the Qantas share price?
• Afterpay shares have exploded 142% in FY20

Motley Fool contributor Cathryn Goh 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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The 2021 financial year looms large and a top broker shows its hand at picking the best ASX large cap stocks for the year ahead.

Investors will need all the help they can get. While the S&P/ASX 200 Index (Index:^AXJO) is on track to close FY20 on an upbeat note, FY21 is promising to be volatile.

No one knows how the COVID-19 story will end and companies will have to live with the uncertainty for many more months.

Those looking for an injection of confidence might want to look at Morgans’ best ASX picks. These stocks offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence, in Morgans’ view.

Aristocrat Leisure Limited (ASX: ALL): The company is a leader in land-based gaming machines you see in bars and clubs, and its digital (social gaming) apps are also taking off. Morgans believes the company is well placed to start leveraging its meta-game capabilities to increase monetisation.

Coles Group Ltd (ASX: COL): The supermarket chain is a beneficiary from the COVID-19 lockdown and its gaining ground against rival Woolworths Group Ltd (ASX: WOW) since the start of the quarter.

Santos Ltd (ASX: STO): Morgans believes the gas producer’s diversified portfolio makes it resilient to the volatile oil price. This includes its Dorado and its newly acquired Darwin LNG projects. The bigger risk is its PNG project as the government there wants a bigger cut of the action.

Macquarie Group Ltd (ASX: MQG): The nearer-term earnings outlook for the investment bank isn’t so great but it remains well positioned to ride out the current COVID-19 period and seize opportunities on the other side.

Westpac Banking Corp (ASX: WBC): Morgans calls Westpac the cheapest among the big four banks. In terms of quality of overall risk profile, the broker believes WBC is a close second to sector leader Commonwealth Bank of Australia (ASX; CBA).

Aurizon Holdings Ltd (ASX: AZJ): The rail operators defensive quality makes it a winner in Morgans’ book. The broker said its below rail business (~50% of earnings) is volume protected via regulatory regime. Above rail coal haulage business (~43% of earnings) is partly protected by capacity charges.

AMCOR PLC/IDR UNRESTR (ASX: AMC): Morgans calls Amcor a “very defensive business”. Over 95% of its revenue is generated from the food, beverage, healthcare, personal care and tobacco packaging sectors. These are deemed to be essential regardless of the COVID-19 situation.

Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP): Rio Tinto is Morgans’ top pick among large cap resource stocks as it’s one of the most resilient global resource franchises. The broker sees BHP as a relatively low risk proposition given its superior diversification relative to its major global mining peers. Both miners have very strong balance sheets that will weather the crisis.

Computershare Limited (ASX: CPU): The broker thinks CPU is a quality franchise with defensive characteristics. While it faces multiple near-term headwinds, demand for its services will get a boost from capital raisings, rising delinquent US mortgages and bankruptcy administration activity.

APA Group (ASX: APA): Morgans calls the gas pipeline group “best-of-breed” among ASX energy infrastructure stocks. Based on FY20 dividend guidance and the current share price, forward cash yield is mid-4% plus ~35% franking. The broker believes APA is capable of growing DPS by mid-single digit CAGR across FY20-FY24.

More reading

• Afterpay shares have exploded 142% in FY20
• ASX bank shares have experienced a horrible financial year
• Leading brokers name 3 ASX 200 shares to sell today
• Why James Hardie and its peers are surging higher today
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses

Motley Fool contributor Brendon Lau owns shares of Aristocrat Leisure Ltd., BHP Billiton Limited, Macquarie Group Limited, Rio Tinto Ltd., Santos Ltd and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Amcor Limited and Macquarie Group Limited. The Motley Fool Australia owns shares of APA Group and COLESGROUP DEF SET. The Motley Fool Australia has recommended Aurizon Holdings 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 Morgans picks the best FY21 ASX buys for the COVID-19 world appeared first on Motley Fool Australia.

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The Qantas Airways Limited (ASX:QAN) share price could provide investors with long-term value if the airliner is successful in executing its post-COVID-19 recovery plan. Here’s why the Qantas share price could be poised for a stronger future.

What is Qantas’ recovery plan?

Late last week, Qantas released a market update that detailed the airliner’s 3-year strategy to recover from the pandemic. The plan revolves heavily around reducing costs by $15 billion over the next 3 years. More specifically, this includes cutting the company’s workforce and restructuring operations.

As part of the drastic plan, Qantas announced that 6,000 jobs would be axed. Qantas CEO, Alan Joyce, described the roles as “jobs we don’t see coming back for a long time”. In addition, another 15,000 of the airliner’s employees will remain stood down for the time being. Qantas also announced that 100 aircraft in its fleet will remain grounded for up to 12 months or face early retirement.

The company also announced a huge capital raising of $1.9 billion in order to accelerate its recovery and help the airliner capitalise on new opportunities.

Will the plan result in a stronger Qantas share price?

The COVID-19 pandemic is undoubtedly one of the biggest challenges ever faced by the aviation industry. Despite large-scale job losses and fleet reductions, Qantas could emerge stronger from the pandemic if its recovery goes to plan.

Recently, world renowned credit rating agency, Moody’s, tipped Qantas to recover more quickly from the pandemic than other airliners. Analysts noted that Qantas has made around 80% of its EBIT from domestic flights and its loyalty program. As such, the Aussie airliner could potentially boost its domestic capacity to help repair its balance sheet during the company’s recovery phase.

In its recent recovery plan announcement, Qantas also noted that the airliner may pursue its ambition of delivering more non-stop international flights. These could potentially improve Qantas’ efficiency and profitability. As a result, once international travel resumes, Qantas could find itself in a better financial and operational position than some of its competitors.

Is the current Qantas share price a buy?

In my opinion, there is no rush to jump in and buy shares in Qantas just yet. With the August reporting season still to come, and growing fears over a second wave of coronavirus, the sector looks extremely volatile in the short term. I think a prudent strategy would be to wait until after the August reporting season to get a better idea of how the company is placed before making an investment decision.

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• ABS reveals which industries (and ASX shares) may rebound hard after COVID-19
• Broker survey points to more upside for JB Hi-Fi and these ASX stocks
• ASX 200 drops 1.15%: Fisher & Paykel Healthcare impresses, big four banks tumble
• ASX 200 Weekly Wrap: ASX retreats as confidence wanes

Motley Fool contributor Nikhil Gangaram 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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As the end of the current financial year (FY20) approaches, we Fools have been looking back on which ASX shares have been the best winners and losers over the financial year.

As the last 12 months has fully incorporated the coronavirus outbreak, there have certainly been more than a few losers. But today, it appears there is one ASX share with an insurmountable led to take the crown of the best share in the S&P/ASX 200 Index (ASX: XJO).

And that share is, of course, Afterpay Ltd (ASX: APT).

How have Afterpay shares performed in FY20?

Quite well, really – Afterpay shares are on top of the ASX 200 returns pile for FY20.

Since 1 July 2019, the Afterpay share price has gone from $24.40 to today’s share price of $59.14 (at the time of wiring). That’s a 12-month return of 142.4%. For comparisons’ sake, the ASX 200 Index has returned -11.3% over the same period.

Not that it’s been smooth sailing for Afterparty in FY20. Over the course of the last 12 months, Afterpay has commanded as little as $8.01 a share (on 23 March) and as much as $62.33 (just this month), as you can see on the chart below:

Anyone who was lucky enough to buy at the low and sell at the high would be sitting comfortably on a 678% gain.

Even so, a flat 142% return for 12 months isn’t bad at all.

Afterpay shares on the move

Afterpay shares have certainly had a wild ride. Investors heavily sold-off the buy now, pay later (BNPL) pioneer in March as fears over a credit crunch, and a potential wave of defaults on users’ debt grew, pushing Afterpay below $9 a share. But in the months since the March crash, the Afterpay share price has soared, including by around 20% in just the past month to new all-time highs. Far from dropping off, the company revealed the use of its platform actually grew during the worst throes of the coronavirus pandemic.

It has also subsequently revealed that its new UK-based Clearpay service is growing at unprecedented rates. More than a million Britons are using now actively Clearpay, despite it only being active in the country for around a year. US growth is also continuing at a healthy pace and the company has also sown up a potentially lucrative deal with Apple as well as a partnership with Chinese tech giant Tencent Holdings.

While we still have a few hours of trading left in the financial year,  it doesn’t look like any other ASX company is close to knocking Afterpay off as FY20’s ASX 200 winner. Its closest competitor appears to be Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), which is sitting on a 115% gain for the year at the time of writing. Unless something dramatic happens later today, it looks as though the race is run.

Should we buy Afterpay for FY21?

I have been wrong on Afterpay many times in my investing career, and it has certainly cost me a lot of foregone returns, so take this prediction with a slab of salt. But I don’t see Afterpay generating anywhere near the returns it has for shareholders over the last financial year in FY21.

This company has had an eye-popping run and sure, it is growing like its nobody’s business. But much of this growth has been baked into the share price we see today. Unless Afterpay manages to pump the throttle even harder on its customer numbers and platform growth and pull another couple of rabbits out of its hat, I don’t see this share giving investors another double-up return in FY21. I could be wrong again, but we shall have to wait and see.

More reading

• Morgans picks the best FY21 ASX buys for the COVID-19 world
• ASX bank shares have experienced a horrible financial year
• Can ASX fintech shares withstand a falling market?
• Leading brokers name 3 ASX 200 shares to sell today
• Why James Hardie and its peers are surging higher today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Afterpay shares have exploded 142% in FY20 appeared first on Motley Fool Australia.

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The end of the 2020 financial year is upon us (yes, already). At this point of the year, I always like to take a look at my investments as well as all ASX shares and see what’s been hot and what’s been not and 1 ASX sector stands out to me as firmly in the ‘not hot’ category: ASX bank shares.

Yep, to put it mildly, ASX banking shares have had a shocker over the last 12 months. Even though there are technically still 3 trading hours left in the financial year, I think it’s fair to say we can assess how ASX shares have performed over the past 12 months.

So, exactly how bad have things been for the big 4 ASX banks in FY20?

Want a bad bank like these?

So let’s start with Commonwealth Bank of Australia (ASX: CBA). CBA shares were asking $82.32 on 1 July last year. Today, a single CommBank share will set you back $69.72 (at the time of writing). That translates into a 15.31% loss for the last 12 months. Even if you factor in the dividends CBA has paid out over the year, investors are still down at least 10% from where they were a year ago.

Let’s now look at Westpac Banking Corp (ASX: WBC). Westpac shares were asking $28.37 on 1 July last year. Today, they are asking just $18.14. That’s a yearly return of -36.18% (ouch).

Turning to National Australia Bank Ltd. (ASX: NAB), we can see that a year ago on 1 July, NAB shares were asking $26.80. Today, those same shares will only cost you $18.44. That translates into a 31.19% loss over the past 12 months. As a longtime NAB shareholder myself, I can tell you it hasn’t been a fun ride on this one.

Finally, let’s check out Australia and New Zealand Banking GrpLtd (ASX: ANZ). ANZ shares were commanding a price tag of $28.28 on 1 July last year. Today, one ANZ share will cost you $18.78. That means that ANZ shareholders are down around 33.6% in FY20.

What’s next for ASX bank shares?

As we just saw, it has been a very painful year for ASX banks and their shareholders. For some context, the S&P/ASX 200 Index (ASX: XJO) was down 11.4% over the last 12 months, so all 4 of the majors have significantly underperformed the broader market.

So, are things looking up from here?

Unfortunately, I don’t see a major recovery for the ASX banking sector anytime soon. The economy is still struggling in the wake of the coronavirus pandemic, which means that credit growth is likely to remain subdued for some time yet. Further, interest rates don’t look likely to be raised off of their current record lows anytime soon, which doesn’t bode well for the banks’ profitability outlook. If there are any issues in the housing market over the next year or 2, it might result in yet another headwind the banks will have to navigate.

All in all, I see a lot of potential downsides without too much upside thrown in. Therefore, I’ll be staying away from the ASX banks for the foreseeable future and looking elsewhere for returns in FY21.

More reading

• Morgans picks the best FY21 ASX buys for the COVID-19 world
• Afterpay shares have exploded 142% in FY20
• Leading brokers name 3 ASX 200 shares to sell today
• Why James Hardie and its peers are surging higher today
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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 ASX bank shares have experienced a horrible financial year appeared first on Motley Fool Australia.

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The Kogan.com Ltd (ASX: KGN) share price is on course to end the financial year with a bang.

In afternoon trade the ecommerce company’s shares are up a sizeable 5% to $14.60.

If Kogan’s shares finish the day at this level, it will mean a gain of almost 200% over the financial year.

Why has the Kogan share price tripled in value in 12 months?

Interestingly, as recently as the start of February, Kogan’s shares were actually trading lower compared to the beginning of the financial year. It has only really been in the last three months that its shares have taken off.

The catalyst for this was a very impressive business update in April which revealed that the closure of retail stores because of the pandemic had been a major boost to its ecommerce business.

That update revealed that during the third quarter, Kogan grew its sales by 30% and its gross profit by 23%. Importantly, it was the final month of the quarter that did the heavy lifting. March sales and gross profit increased by over 50%.

Since then it has been onwards and upwards for the company. In April Kogan’s sales more than doubled and its gross profit jumped over 150%.

Then at the start of June, the company’s sales were up over 100% and its gross profit was up over 130% quarter to date. Growing even strongly was its adjusted EBITDA, which increased by more than 200% quarter to date. This was despite the company investing heavily in building its brand and growing its active customers.

The latter certainly has paid off. Kogan’s active customers increase to 2,074,000 at 31 May 2020, this was up 29% from 1,609,000 active customers at the end of FY 2019.

Capital raising.

Another driver of its strong share price gain was its $115 million capital raising.

While capital raising can often weigh on a company’s shares, this one went down well with investors. This is because it is decided to raise funds to give it the financial flexibility to act quickly on future value accretive opportunities.

Is it too late to invest?

I think Kogan has the potential to grow materially in the future thanks to the shift to online, its strong market position, and expansion/acquisition opportunities.

In light of this, I would still class it as one of the best buy and hold options on the ASX, even after its strong gains in FY 2020.

More reading

• E-commerce is the COVID-19 success story. These businesses are the clear winners.
• 3 ASX shares to own for the next 10 years
• How I would construct a $50,000 growth portfolio
• The Kogan share price has quadrupled in value since March: Is it too late to invest?
• Why Kogan, Myer, Orocobre, & Qantas 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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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Whilst relatively small in comparison to the United States, Australia boasts a very vibrant and exciting financial technology (fintech) sector. The sector has produced world class companies like Xero Limited (ASX: XRO) and buy now, pay later (BNPL) giant Afterpay Ltd (ASX: APT). However, it was not a good start to the week for ASX fintech shares, with many falling as much as high single digits during Monday’s trade.

Payments processing

Tyro Payments Ltd (ASX: TYR) was one of the few fintech companies to see its share price rise yesterday. Tyro is a payment processing company. Outside of the big four banks, it is Australia’s largest EFTPOS provider of all the authorised deposit-taking institutions (ADIs). From 25 March, the company has been reporting its transactions weekly, for transparency purposes, during the pandemic. 

On Monday, Tyro posted its 15th such update. This showed an increase in total transaction volume from the previous week. The Tyro share price rose by 1.2% on Monday and has continued climbing today.

In contrast, another payments processing company, Pushpay Holdings Ltd (ASX: PPH), saw its share price fall by 2.67% yesterday. Meanwhile giftcard company EML Payments Ltd (ASX: EML) also recorded a share price fall of 4.14% during Monday’s trade.

Buy now, pay later

Afterpay had a relatively flat day yesterday, only falling by 0.18%. Its BNPL cohorts, however, fared much worse. Sezzle Inc (ASX: SZL) tumbled by 6.75%, Zip Co Ltd (ASX: Z1P) by 6.61% and Splitit Ltd (ASX: SPT) by a substantial 9.16%.

Among all the BNPL companies, I believe only Zip Co is what could be classified a mature organisation with other developed credit products. It also owns the free personal budgeting software Pocketbook. All the others are pure play, BNPL companies with, in my opinion, escalating valuations and no profits on the immediate horizon.

However, that is how growth shares work. At the moment, the BNPL sector is the wild west. Regulators are yet to catch up and companies are rapidly pushing into markets that are wide open. Share price volatility is part of the risk that comes with investing in these companies. Generally, the smaller the company, the greater the volatility. 

Having said that, I think the BNPL fintech companies are likely to do very well over the medium term; say, 2 – 3 years. As our economies emerge from the pandemic, there will undoubtedly be extensive financial fallout. As such, access to short-term credit is going to be a welcome method for many consumers to buy what they want, but can’t immediately afford.

Foolish takeaway

Volatility is a natural part of investing in any growth organisation and many of the companies mentioned above are growing rapidly in niche areas. Tyro, in particular, is actually helping to provide the market with a fully transparent view of the wider health of the retail sector. All three payments processing providers mentioned are mature companies with well developed revenue streams. I expect them all to do well during earnings season.

In the BNPL space, earnings season will definitely help to inform investors about the performance of the major players against key growth metrics. While many are not currently profitable, they are growing at a very rapid rate. They are also attracting a great deal of attention from the market with Splitit, for example, recently signing a partnership deal with Mastercard. 

More reading

• Afterpay shares have exploded 142% in FY20
• The Zip Co share price is up 65% in 12 months
• The top 10 performing ASX shares over the past year
• Why Pushpay, Ramelius, Saracen, & WiseTech are dropping lower
• These 3 companies have incredible switching cost moats

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited, PUSHPAY FPO NZX, Tyro Payments, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Emerchants Limited, PUSHPAY FPO NZX, and Sezzle 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.

The post Can ASX fintech shares withstand a falling market? appeared first on Motley Fool Australia.

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So far, 2020 has been a rough year for income investors. With the onset of coronavirus, many companies cut or deferred dividends. But there are still many ASX companies offering decent dividend shares if you know where to look. We take a look at 4 ASX-listed companies which are still offering strong dividend yields. 

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price has gained 43% from its March low, but the company is still offering an attractive dividend yield of nearly 6%. Harvey Norman has seen sales increase as a result of lockdowns, with customers upgrading their home environments. In 2H FY20 (to 31 May) total Australian franchises sales increased 17.5%. The company paid an interim dividend of 6 cents per share yesterday as well as a special dividend of 6 cents per share.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue Metals share price has regained 60% from its March low but is still offering a dividend yield of above 7%. The company reported record iron ore shipments in the third quarter of 42.3 million tonnes, 10% higher than Q3 FY19. Fortescue’s dividend policy is to maintain a payout ratio of 50%–80% of full-year net profit after tax (NPAT). Fortescue paid an interim dividend of 76 cents per share in April. 

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is up 10% from its March low, with the electricity company offering a dividend yield of 6.6%. Statutory earnings per share increased 12% in the first half to 49.7 cents, however underlying earnings per share fell 10% to 66.4 cents. AGL’s dividend policy targets a payout ratio of 75% of the underlying profit after tax. AGL paid an interim dividend of 47 cents per share in March. 

Boral Limited (ASX: BLD)

The Boral share price is up 115% since its March low but the building products company is still an attractive dividend share offering a yield of 6%. Boral’s operations are considered to be within the critical construction sectors that were encouraged to continue operating as essential businesses throughout COVID-19. Boral’s revenue was flat during the first half, however net profit attributable to members fell 40.3%. An interim dividend of 9.5 cents per share was paid, down from 14 cents in the prior corresponding period. In the second half, revenues have been down due to the impacts of COVID-19. Nonetheless, Boral stands to benefit as economic recovery gains traction. 

More reading

• Why James Hardie and its peers are surging higher today
• Is CommBank still the best ASX dividend share to buy?
• E-commerce is the COVID-19 success story. These businesses are the clear winners.
• Fortescue Metals and 2 other ASX 200 shares to buy in a recession
• Why Fortescue and these ASX dividend shares could be top income options

Motley Fool contributor Kate O’Brien 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 Searching for decent dividends? These 4 ASX shares are paying 6% or more appeared first on Motley Fool Australia.

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The Zip Co Ltd (ASX: Z1P) share price is pushing higher on Tuesday and is up almost 1% to $5.13.

If things stay this way, the buy now pay later provider’s shares will end the current financial year with a 65% gain.

Why is the Zip Co share price up 65% in 12 months?

After a reasonably mixed first half of the financial year, Zip Co’s shares have been on fire in the second half for a couple of reasons.

The first has been its strong sales, customer growth, and bad debt performance in FY 2020 despite the pandemic.

For example, during the third quarter, Zip Co delivered an 84% increase in quarterly transaction volume to $518.7 million, a 96% lift in quarterly revenue to $45 million, and a 67% jump in customer numbers to 1.95 million.

This strong form continued into April and then into May. For the latter, the company posted monthly transaction volume of $189.3 million and revenue of $15.6 million. This was a 63% and 78% increase, respectively, over the same period last year.

It also added 65,000 new customers in May, lifting its total to 2.1 million. This represents a total increase of 63% since the same time last year.

Importantly, although it has risen slightly, Zip’s net bad debt stood at 2.16% at the end of May. This is in-line with expectations and significantly outperforming the market average. Furthermore, lead indicators are pointing to a reduction in bad debts in the months ahead.

U.S. expansion.

Another catalyst for its strong share price gain has been its decision to take on Afterpay Ltd (ASX: APT) in the $5 trillion U.S. retail market.

Zip Co will enter the lucrative market after signing an agreement to acquire New York-based buy now pay later provider QuadPay.

QuadPay is a leading, high growth, instalment provider with a strong focus on innovation and customer centricity. It has 1.5 million customers and 3,500 merchants on its platform. From these it is currently generating annualised total transaction value of over $900 million and annualised revenue of $70 million.

Is it too late to buy Zip shares?

I think the acquisition of an established player in the U.S. market was a great move, rather than launching from scratch.

If the company can make a success of its U.S. expansion, which I’m optimistic that it will, then it could grow materially over the next decade and generate strong returns for investors.

Though, I would only buy Zip’s shares if you’re prepared to make a long term investment and have a high tolerance for risk.

More reading

• Why Galaxy, Jumbo, Webjet, & Zip Co shares are sinking lower
• Could the Afterpay share price really be good value right now?
• Do you want to get rich by investing? Then do this
• Purchasing Openpay shares in March in would have pocketed you this return
• 3 ASX payments shares that could double your money

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this medical device company’s shares to NZ$22.75 (A$21.25). Although the broker acknowledges that the medical device company delivered a strong full year result this week and its guidance for FY 2021 could be conservative, it still has issues with its valuation. The broker believes its shares are trading on excessive multiples. The Fisher & Paykel Healthcare share price is changing hands for $32.71 today.

Newcrest Mining Limited (ASX: NCM)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this gold mining giant’s shares to an underperform rating with a $28.00 price target. Macquarie has made sweeping downgrades to a range of gold miners today. Its analysts aren’t as positive on the industry anymore due to the strengthening Australian dollar. It expects this to impact the industry’s earnings growth in the near term. The Newcrest share price is up slightly to $31.43 this afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and lifted the price target on this airline operator’s shares to $3.00. Although the broker sees positives in its recovery plan, it has warned that there are risks to it. In addition to this, Credit Suisse has previously suggested that a full recovery could take until FY 2023. In light of this, it doesn’t appear to see any reason to rush in at this price. Qantas shares are up at $3.88 this afternoon.

More reading

• Why James Hardie and its peers are surging higher today
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses
• Why Brickworks, Collins Foods, Corporate Travel, & Fisher & Paykel Healthcare are shooting higher
• The top 10 performing ASX shares over the past year
• Is it time for a plan B with ASX 200 shares?

Motley Fool contributor James Mickleboro 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 Leading brokers name 3 ASX 200 shares to sell today appeared first on Motley Fool Australia.

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