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Luckily in this low interest rate environment, there are still a good number of ASX shares paying generous dividends.

But which ones should you be adding to your portfolio? Three ASX dividend shares that I would buy are listed below. Here’s why I like them:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a wholesale distributor of computer hardware and software. I think it is one of the most underrated shares on the local market and have been very impressed with its strong growth over the last few years. Pleasingly, this positive form has continued in FY 2020, with first quarter profit before tax jumping 36.3% to $18.4 million. And with management appearing confident that demand will remain strong over the rest of the financial year, it has guided to a 31% increase in its dividend this year. This will bring it to 35.5 cents per share, which equates to a fully franked 5.1% yield.

Fortescue Metals Group Limited (ASX: FMG)

Another quality dividend share to consider buying is Fortescue Metals. With iron ore prices at sky high levels, Fortescue appears well-placed to reward shareholders handsomely with dividends again in FY 2020 and FY 2021. Especially given the company’s improving grades and ultra low costs. This should mean the miner is generating very high levels of free cash flow right now from its Pilbara operations. I estimate that its shares provide investors with a forward fully franked dividend of ~6%.

Woolworths Limited (ASX: WOW)

I think Woolworths is a good option for income investors. I like the conglomerate due to its quality brands (Woolworths supermarkets, Dan Murphy’s, BWS) and their defensive qualities. Combined with its supply chain improvement plans, I believe the company is well-positioned to continue growing its earnings and dividend at a solid rate over the next decade. At present I estimate that the company’s shares provide investors with a fully franked 3% FY 2021 dividend yield.

More reading

• 3 ASX shares to own for the next 10 years
• Top brokers name 3 ASX shares to sell next week
• The best placed ASX stocks for the August reporting season
• Add the WOW factor to your investment portfolio. Why I think the Woolworths share price is a buy
• 2 ASX dividend shares with yields over 8%

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 Woolworths 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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The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could be on the move today after the release of a record full year result.

How did Fisher & Paykel Healthcare perform in FY 2020?

For the 12 months ended 31 March 2020, Fisher & Paykel Healthcare delivered operating revenue of NZ$1.26 billion. This was an 18% increase on the prior corresponding period or a 14% increase in constant currency.

On the bottom line, the medical device company reported a 37% jump in net profit after tax to NZ$287.3 million. This was positively impacted by tax changes including research and development tax credit and building tax depreciation. Excluding these and favourable currency movements, net profit after tax would have been up 23% year on year.

Both its operating revenue and profit after tax came in ahead of its guidance. Management had guided to operating revenue of NZ$1.24 billion and net profit after tax in the range of NZ$275 million to NZ$280 million.

What were the drivers of its growth?

The key drivers of its growth were increasing use of its Optiflow nasal high flow therapy, demand for products to treat COVID-19 patients, and strong hospital hardware sales throughout the course of the year.

Hospital product revenue increased 25% to NZ$801.3 million and Homecare product revenue lifted 9% to US$457 million.

The company’s Managing Director and CEO, Lewis Gradon, commented: “The 2020 financial year was already on track to deliver strong growth before the coronavirus impacted sales. Beginning in January, the demand for our respiratory humidifiers accelerated in a way that has been unprecedented.”

“With new processes, new procedures and new ways of working safely, we managed to double and in some instances triple, output for some of our hospital hardware products over just a few months at the end of the year. I’m incredibly proud of our people and their unyielding commitment to doing the right thing for patients,” he added.

FY 2021 outlook.

Mr Gradon warned that there was a lot of uncertainty for FY 2021 because of the pandemic.

He explained: “We cannot predict the scope, duration or impact of COVID-19 and its effects on our operations and financial results. In the midst of this uncertainty, we will continue doing what we are known for – expanding our range of innovative products with patients at the centre.”

Nevertheless, the company has started FY 2021 very strongly, particularly in respect to its Hospital product sales.

During the first three months of FY 2021, Hospital product sales have continued to accelerate, with hardware growth of over 300%. Hospital consumables are also up over 33% compared to the prior corresponding period.

Things aren’t quite as positive for its Homecare products, which are seeing evidence of both a lower obstructive sleep apnoea (OSA) diagnosis rate and mask resupply levels returning to normal levels. Homecare product revenue is up in the region of 9% over the first three months.

Looking ahead, management expects FY 2021 operating revenue to be approximately NZ$1.48 billion and net profit after tax to be in the range of NZ$325 million to NZ$340 million. This will be an increase of 17.5% and 13.1% to 18.3%, respectively.

This guidance is based on global hospitalisations due to COVID-19 peaking during the first quarter of this financial year, and hospitalisations for respiratory-related illnesses and OSA diagnostic activity steadily returning to normal by the end of the first half.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• Australian businesses are running out of cash
• Is the share market facing another February 2020 moment?
• Top brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia 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 Australian share market was on form on Friday and raced notably higher.

While the majority of shares on the market climbed higher, some stood out by storming to new highs.

Here’s why these ASX shares are flying high right now:

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 share price jumped to a multi-year high of $1.01 at the end of last week. Investors have been buying the medical imaging data management solutions provider’s shares this month following the announcement of a major acquisition. Earlier this month Mach7 announced the acquisition of leading provider of an enterprise image viewing technology, Client Outlook. This acquisition has expanded its offering and increased its total addressable market from US$0.75 billion to US$2.75 billion. This is materially more than the revenue of $9.1 million it recorded during the first half. 

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price hit a new record high of $1.68 last week. When the meal kit delivery company’s shares hit that level, it meant they were up a remarkable 500% year to date. Investors have been buying Marley Spoon’s shares after it reported a surge in demand for its meal kits. This led to the company delivering revenue of 42.8 million euros in the first quarter, up 46% on the prior corresponding period. As a result of this stronger than expected growth, the company revealed that its path to profitability is accelerating. Management is expecting to achieve positive operating EBITDA the second quarter.

ResMed Inc. (ASX: RMD)

The ResMed share price charged to a record high of $27.28 on Friday. The medical device company’s shares have been very strong performers this year thanks to the robust demand it is experiencing for its obstructive sleep apnoea solutions and ventilators. The latter is being driven by the pandemic. And given how case numbers continue to shoot higher in the United States, investors appear to be betting on ResMed having a particularly strong fourth quarter.

More reading

• 3 ASX shares to own for the next 10 years
• 10 high quality ASX shares to buy in FY 2021
• How I would construct a $50,000 growth portfolio
• 2 ASX shares to ride out a second wave of coronavirus
• Consider these 3 quality ASX healthcare shares to buy now

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 MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index jumped 1.5% to 5,904.1 points.

Will the market be able to build on this on Monday? Here are five things to watch

ASX 200 set to fall heavily.

The ASX 200 looks set to fall heavily on Monday after a selloff on Wall Street on Friday. According to the latest SPI futures, the benchmark index is expected to open the week 91 points or 1.55% lower. On Wall Street the Dow Jones fell 2.8%, the S&P 500 dropped 2.4%, and the Nasdaq index tumbled 2.6%. A spike in coronavirus cases weighed on investor sentiment.

Oil prices edge lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.6% to US$38.49 a barrel and the Brent crude oil price edged 0.1% lower to US$41.02 a barrel. Concerns over the spike in coronavirus cases weighed on prices.

Gold price jumps.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive day after the gold price jumped higher. According to CNBC, the spot gold price rose 0.8% higher to US$1,784.80 an ounce. Demand for safe haven assets rose after equities tumbled.

Fisher & Paykel Healthcare results.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch today when it releases its full year results. In March the medical device company revealed that it expects full year operating revenue to be approximately NZ$1.24 billion. On the bottom line, it has forecast net profit after tax in the range of NZ$275 million to NZ$280 million. Investors will no doubt be interested to hear if demand for ventilators has remained strong since the end of its financial year.

Shares going ex-dividend.

A number of popular ASX 200 shares are going ex-dividend this morning and could trade lower. These include the likes of BWP Trust (ASX: BWP), Charter Hall Group (ASX: CHC), DEXUS Property Group (ASX: DXS), Goodman Group (ASX: GMG), and Mirvac Group (ASX: MGR).

More reading

• Fisher & Paykel Healthcare share price on watch after COVID-19 drives record profit result
• Could these ASX 100 shares help you retire early?
• 3 fantastic ASX dividend shares to buy next week
• 3 ASX share price trends to watch next week
• These were the best performing ASX 200 shares last week

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.

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I think one of the best ways to set yourself up for an early retirement is by having a passive income stream that is reliable and has the potential to grow over time.

But this doesn’t necessarily mean you should buy the highest yielding shares on the ASX.

Instead, I would suggest you buy shares which pay dividends (even if the yield is small) and have the potential to grow them strongly over the next decade or two.

Two that I think tick a lot of boxes are listed below. Here’s why I would buy them:

Goodman Group (ASX: GMG)

I think Goodman Group would be a great option for investors. I’m a big fan of the integrated commercial and industrial property group due to the way its portfolio is positioned. The quality of its portfolio has been on display for all to see in FY 2020. Despite the pandemic, Goodman has been able to reaffirm its earnings and distribution guidance this year.

This is because of its exposure to in-demand markets such as ecommerce, logistics, food, consumer goods, and the digital economy. I’m confident these positive trends will continue for some time to come. This should put Goodman in a strong position to deliver solid earnings and distribution growth for a long time to come. At present its shares offer an estimated forward 1.9% distribution yield.

Treasury Wine Estates Ltd (ASX: TWE)

Another option to consider is this wine company. Although its performance in FY 2020 has been disappointing (and not just because of the pandemic), I feel Treasury Wine is now on a path to sustainable growth. Especially after announcing its intention to spin off its Penfolds business and associated assets into a separate ASX listed company. Management believes the demerger will facilitate the creation of incremental long-term value for shareholders and I agree.

In light of this, now could be an opportune time to make a patient long term investment in its shares. Not least for its dividend. While I expect its to be cut down to a level that provides a ~2.5% yield in FY 2021, I suspect it could be back to previous levels in FY 2022 once things normalise again. This would be a fully franked 3.7% yield based on FY 2019’s dividend. After which, I expect it to grow at a decent rate over the decade that follows.

More reading

• ASX 200 down 1.8%: CSL announces new acquisition, Qantas to raise $1.9bn
• Why I would buy these outstanding ASX 50 shares right now
• This top fund manager believes dividend yields are going to 0%. Where should you invest?
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• Top brokers name 3 ASX 200 shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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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One of the best performers on the Australian share market in 2020 has been the De Grey Mining Limited (ASX: DEG) share price.

Since the start of the year, the gold-focused mineral exploration company’s shares have jumped an incredible 1,645%.

To put that into context, if you had invested $10,000 into its shares at the start of the year, you would have just short of $165,000 today.

Why is the De Grey share price rocketing higher in 2020?

Investors have been scrambling to get hold of the company’s shares this year thanks to a series of positive updates from its Hemi prospect in Western Australia.

Drilling results at the prospect have delivered outstanding results over the last few months and appear to indicate that the company is sitting atop a major resource with the added bonus of having world class infrastructure on its doorstep.

The latter will be a big positive if the prospect becomes operational in the future.

What is the latest news?

Last week its drilling activities revealed further high grades and an expanded footprint at the Aquila Zone within the Hemi prospect.

De Grey Exploration Manager, Phil Tornatora, commented: “The Aquila style gold mineralisation identified in highly altered intrusion 400m to the west is an exciting and significant development as it opens up the overall strike potential of the deposit.”

“The broad high grade mineralisation announced today is particularly encouraging demonstrating the potential to rapidly add to Aquila’s gold endowment,” he added.

Further diamond drilling is coming with the aim of extending Aquila to at least 300 metres below surface along the entire strike of the deposit. Management also notes the potential to extend Aquila a further 400 metres to the west under an interpreted shallow veneer of sediments.

Should you invest?

I’ve been very impressed with its drilling results and I’m confident that De Grey has discovered a real gem.

However, with its market capitalisation now over $1 billion, I think the easy gains are gone. In light of this, I would suggest investors wait until the full resource is known and feasibility studies are undertaken.

More reading

• De Grey Mining share price up 25%, hitting 9-year high

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.

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If you’re looking for new additions to your portfolio in July, then I think the three ASX shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would buy is Appen. This growing tech company has a team of one million plus crowd-sourced experts, preparing the data for the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. And thanks to the acquisition of the Figure Eight business last year, the company now has strong offering for government customers. This is a lucrative market given that the US government has a US$5 billion AI budget and the UK government has a £2.3 billion AI budget. Overall, I believe Appen is well-positioned to continue growing its earnings at an above-average rate for many years to come.

CSL Limited (ASX: CSL)

The second five-star stock to consider buying is CSL. I think the biotherapeutics giant is a fantastic long term investment option for investors. This is due to the company’s world class CSL Behring and Seqirus businesses. These two businesses have leading therapies and vaccines, a growing plasma collection network, and extremely promising research and development pipeline. The latter contains a number of products that have the potential to generate billions of dollars of sales in the future if they are commercialised. I believe this puts the company in a position to continue generating strong returns for investors over the next decade and beyond.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

While not strictly an ASX share, I believe the BetaShares NASDAQ 100 ETF is a five-star option for investors. In fact, this exchange traded fund gives investors access to a large number of companies that are deserving of five-star status. These include Apple, Amazon, Facebook, Microsoft, Nvidia, and Google parent, Alphabet. It also includes a number of up and coming companies that could be stars of the future like online conferencing company Zoom and biotech company Seattle Genetics. I believe the majority of companies on the NASDAQ 100 are well-placed to grow at a quicker than average rate in the future. This could ultimately drive strong returns for investors over the next decade.

More reading

• 10 high quality ASX shares to buy in FY 2021
• Top brokers name 3 ASX shares to buy next week
• How I would construct a $50,000 growth portfolio
• Brokers name 3 ASX 200 shares to buy today
• These 2 ASX shares are perfect for a beginner investor

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 BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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Although there have been a large number of dividend cuts and deferrals this year because of the pandemic, there are still plenty of companies sharing their profits with shareholders.

Three quality shares which continue to perform strongly and look set to pay generous dividends over the next 12 months and beyond are listed below. Here’s why I think they could be great options:

BHP Group Ltd (ASX: BHP)

The first dividend share I would consider buying is BHP. I think the mining giant is a top option right now due to its world class and low cost operations and favourable commodity prices. The latter is particularly the case with iron ore. Thanks to supply disruptions and robust demand, the steel making ingredient is currently commanding a price of over US$100 a tonne. This means BHP’s iron ore operations are generating high levels of free cash flow. The majority of which I expect to be returned to shareholders. I estimate that BHP’s shares currently provide investors with a forward fully franked ~5% dividend yield.

BWP Trust (ASX: BWP)

BWP Trust is a real estate investment trust and the landlord to 68 Bunnings Warehouse stores. While many retail store landlords have been negatively impacted by the pandemic, BWP has continued to collect rent as normal. I believe this is a testament to the quality of its tenancies. And given how the government is supporting the renovation market with additional stimulus, I believe Bunnings is well-placed to continue its growth over the coming years. Overall, I feel this leaves BWP positioned to increase its rental income and distribution at a modest rate for the foreseeable future. At present I estimate that its shares offer a 4.7% FY 2021 distribution yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. I’m a big fan of the conglomerate due to its strong businesses and their positive long term outlooks. As I mentioned above, I believe the Bunnings business is well-placed for growth over the medium term thanks to its high quality business model and government stimulus. This is a big boost for Wesfarmers as it is the biggest contributor to the company’s earnings now. Outside this, I expect Wesfarmers to add to its portfolio with value accretive acquisitions in the near term. Combined, this could lead to its earnings and dividends growing at a solid rate over the next decade. At present I estimate that its shares offer a fully franked 3.7% FY 2021 dividend yield.

More reading

• ASX shares vs property: which is a better investment?
• The best placed ASX stocks for the August reporting season
• Safe ASX 200 dividend shares to buy today
• Wesfarmers and one more ASX share I’d buy in another market crash
• Here are 5 rebound shares to buy with $5,000

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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The recent share market crash has caused many high-quality dividend shares to trade on low valuations. In the short run, their prices could move lower due to the economic impact of coronavirus. But over the long run, they have the potential to deliver a sound recovery.

Furthermore, with interest rates likely to remain at low levels as policymakers seek to support the economy during an uncertain time, the yields available from dividend shares could make them highly attractive relative to other income-producing assets. This may catalyse their prices over the coming years.

Short-term risks

The world economy is likely to continue to face risks over the coming years that could negatively impact on its growth rate. For example, there could be a second wave of coronavirus in the latter part of 2020. There may also be ongoing geopolitical uncertainty between the US and China that could cause a deterioration in global economic activity.

Despite this, now could be an opportune moment to buy dividend shares. In many cases, investors have factored in the dangers facing the world economy over the medium term. Therefore, long-term investors can take advantage of lower share prices to obtain more attractive risk/reward opportunities. Over time, investor sentiment and the world economy’s growth rate are likely to recover, which may produce rising dividends and improving share price performances.

Recovery potential

Even if there are difficulties ahead for many dividend shares, equities have a solid track record of delivering long-term growth. For example, the FTSE 100 and S&P 500 have recorded annualised total returns that are in the high-single digits since their inceptions. Therefore, even if they experience slower growth for a period of time, improved performance is likely to be ahead.

With a large proportion of the 2  indexes’ returns having been derived from the reinvestment of dividends, purchasing a selection of income shares could prove to be a sound investment for a wide range of investors. They may, for example, offer investment appeal for growth investors as well as those individuals who are seeking to generate a passive income from their portfolio.

Low-interest rates

Furthermore, dividend shares could become increasingly popular over the coming years. Low-interest rates look set to remain in place over the next few years, as policymakers seek to revitalise the economic outlook. This could make the returns on dividend shares seem far more appealing on a relative basis than other income-producing assets such as cash and bonds. Therefore, demand for income shares may increase, which could boost their prices.

As such, now could be the right time to buy a diverse range of dividend shares and hold them for the long run. They may experience some uncertainty in the near term but have the potential to offer a strong total return as the share market recovers.

More reading

• $10,000 invested in De Grey Mining shares in January would be worth $165,000 today
• 3 five-star ASX stocks to buy in July
• 3 fantastic ASX dividend shares to buy next week
• 3 ASX shares to own for the next 10 years
• The 2020 share market crash could help you to get rich and retire early

Motley Fool contributor Peter Stephens 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 coronavirus pandemic has forced individuals and society to adapt in order to function and endure. Here are 3 ASX shares that I think have adapted well to these changes and could prosper in 2020 and beyond.

Woolworths Group Ltd (ASX: WOW)

The essential services provided by Woolworths were highlighted during the pandemic, with the supermarket giant experiencing unprecedented demand. The pandemic also saw consumers grow their appetite for online grocery delivery services.

In order to accommodate the change in consumer behaviour, Woolworths recently doubled its capacity for online grocery deliveries as the company expects $3 billion in e-commerce sales next year. The supermarket giant has also hired an additional 5,000 third-party couriers to strengthen its current fleet of 800 delivery trucks in order to service more delivery orders.

In addition, Woolworths has announced plans to invest approximately $780 million on 2 automated distribution centres in order to streamline its supply chains.

Marley Spoon AG (ASX: MMM)

Despite the financial turmoil caused by the pandemic, it has unearthed a potential gem in Marley Spoon. Marley Spoon is a subscription-based meal-kit provider that has capitalised on changing consumer behaviour as a result of COVID-19. The company delivers fresh ingredients directly to consumers and operates in 3 primary regions: Australia, the US, and Europe. 

Marley Spoon reported that 7.5 million meals were delivered in the first quarter of 2020, resulting in the company’s first ever positive cash flow since its IPO. The company also saw a 46% increase in revenue for the first quarter, with growth accelerated by the coronavirus pandemic.

With many consumers opting for the convenience of services provided by Marley Spoon, the company could be well poised for future growth. As a result, Marley Spoon has already completed a $16.6 million capital raising in order to strengthen its balance sheet and fund continued global expansion.

Kogan.com Ltd (ASX: KGN)

Recently, I wrote an article highlighting how the market capitalisation of Kogan.com is 5 times that of Myer Holdings Ltd (ASX: MYR). In my opinion, this reflects the changing of the guard in the retail sector, as consumers opt for the convenience of online shopping over traditional brick-and-mortar shops.

As at 31 May, Kogan saw its active customer base grow to over 2 million, with 126,000 additional customers joining the company in May. The online retailer also reported a 100% increase in gross sales across the April and May period in comparison with the same period last year and also reported a 130% surge in gross profit for the period.

The demand has also been reflected in the Kogan.com share price, which has surged more than 310% from late March and is currently trading at all-time highs. The online retailer recently completed a $115 million capital raising in order to accelerate future acquisition opportunities. Notable acquisitions made by Kogan include Dick Smith and furniture and homeware retailer Matt Blatt.

Should you buy?

In my opinion, the 3 shares mentioned are well positioned to benefit from changing consumer needs and behaviours. I think a prudent strategy for investors is to compile a watchlist of ASX shares that could also thrive in the next 10 years and wait for a good buying opportunity.

More reading

• The best placed ASX stocks for the August reporting season
• How I would construct a $50,000 growth portfolio
• Add the WOW factor to your investment portfolio. Why I think the Woolworths share price is a buy
• 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

Nikhil Gangaram 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 owns shares of Woolworths Limited. 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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