Tag: Motley Fool Australia

The gold price hit a new high of over $2,700 an ounce yesterday as investors sought safe haven assets. Continued political tension between the United States and China have added to uncertainty, along with rising coronavirus cases. The gold price is now up more than 20% since the start of the year when it was trading around $2,200 an ounce. 

Gold has been used as a method of wealth preservation for decades. It can be used as a hedge against inflation and to provide diversification benefits thanks to its negative correlation with paper securities. One way to gain exposure to gold is through ASX shares in gold miners.

Here are 3 ASX gold miners that will help you get on the gold train. 

Newcrest Mining Limited (ASX: NCM)

Newcrest is one of the world’s largest gold mining companies, operating gold, silver, and copper mines in Australia, Canada, and Papua New Guinea. The Newcrest share price is up 21% for the year and 67% from its March low.

The gold miner reported a strong fourth quarter with gold production up 7% to 573,175 ounces. Over the full year, Newcrest produced 2,487,739 ounces of gold, in line with guidance. Silver production was 983,431 ounces in FY20, with 137,623 tonnes of copper produced. 

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources is a gold miner and explorer operating in Western Australia, the Northern Territory, and Alaska. The Northern Star share price is up 43% for the year and 76% from its March low.

The company reported record gold production in the quarter ending June 2020, with 267,261 ounces of gold recovered. Over the full year, Northern Star recovered 905,177 ounces of gold. At the end of the quarter, the company had cash, bullion, and investments, of $770 million with corporate debt of $700 million. The company also announced that $200 million in corporate debt was repaid in early July. 

Saracen Mineral Holdings Limited (ASX: SAR) 

Saracen is involved in the exploration and mining of gold and other minerals in the Kalgoorlie Region of Western Australia. The Saracen share price is up 95% for the year and 122% from its March low.

In the quarter ending June 2020, Saracen produced 145,830 ounces of gold with full year production of 520,414 ounces, ahead of guidance. Production guidance for FY21 is for upwards of 600,000 ounces. Saracen reported cash and bullion of $369 million at 30 June 2020 and debt of $321 million.

More reading

• Why 5G Networks and these ASX shares just hit record highs
• 5 things to watch on the ASX 200 on Tuesday
• Gold hits record high! Is it too late to buy this gold miners ETF?
• ASX 200 up 0.25%: Lynas rockets on U.S. deal, gold miners surge, bank shares tumble
• Why Lynas, Northern Star, REA Group, & Sezzle shares are storming higher

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.

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Do you have $1,500 to invest into ASX shares? There are a few shares that I’d buy today.

You could decide to invest your entire amount into one share pick or split it across two or even all three ideas. However, it probably wouldn’t be very efficient to invest just $500 into three picks – it would cost more brokerage.

Here are my three ideas:

Bubs Australia Ltd (ASX: BUB)

I believe that Bubs has a very promising long-term future. The infant formula business just announced its final quarter of FY20 which saw a revenue decline due to the huge amount of growth in the FY20 third quarter.  However, the company reported a strong 32% increase in FY20 revenue to $62 million.

I think Bubs an exciting ASX share because of a few reasons.

The biggest reason is the large potential of the international markets for Bubs. In the last quarter of FY20, China direct sales increased by 26% compared to the prior corresponding period and represented 22% of gross revenue. Other export markets, which excludes China, saw fourth quarter sales growth of 71% and this represented 8% of total sales.

Asia alone is a huge market and can support a much larger Bubs business. Hopefully it can continue to grow its revenue by pleasing double digits each year.

The company also made two other exciting announcements yesterday. Jennifer Hawkins will be its global brand ambassador and it also launched Vita Bubs, a vitamin and mineral supplement range. The company expects this will materially add to domestic revenue.

In five years I believe the ASX share will be much larger, particularly if it’s able to win a decent market share with its organic grass-fed (cow) milk infant formula range.

I’d be very happy to buy shares at the current Bubs share price, particularly after yesterday’s dip.

Magellan Global Trust (ASX: MGG)

Magellan Global Trust is one of my favourite ASX share picks at the moment.

The listed investment trust (LIT) has a number of positives. It only invests in high-quality global shares like Alphabet, Microsoft, Tencent and Alibaba. These types of companies have business models that should have resilient demand even in the face of COVID-19. I like the diversification the LIT offers. 

The Aussie dollar has strengthened considerably against the US dollar, it’s now worth around US$0.72, which is the highest it’s been over the past year. It’s better to buy US shares when the Aussie dollar is stronger rather than lower (all other things being equal).

I like being able to buy LITs and LICs (companies) at a discount to their net asset values (NAV). At the current Magellan Global Trust share price it’s trading at a 3.5% discount to the NAV. Not a huge discount, but it’s cheaper than if you paid for the underlying shares yourself.

As a bonus, the ASX share targets a 4% distribution yield. I think that’s a good yield in the current world we live in where interest rates are almost 0%.

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is LIC that also largely avoids ASX shares. It targets international shares. It’s actually run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. He has steered MFF to strong returns over the past decade. MFF’s total shareholder returns has been an average of 17.4% per annum over the past ten years.

One of the main benefits about investing in MFF Capital is that it has lower costs compared to most other internationally-focused LICs. MFF pays a fixed management fee in dollar terms. So as MFF gets bigger its costs as a percentage of assets reduces.

It has two large, high-conviction ideas with Visa and Mastercard, the payment giants. Those two holdings alone make up more than a third of the LIC’s holdings. I really like them as ideas because they’re leveraged to whatever happens next with COVID-19. An increase of ecommerce purchases would help Visa and Mastercard. More in-store purchases would also be beneficial if global COVID-19 cases and COVID-19 restrictions improve.

The ASX share also has a large cash position (41.3% of the portfolio) which is a useful thing to have when share prices are so high, COVID-19 is still spreading and there’s an unpredictable US election coming up. It’s defensively positioned for whatever happens next. 

The MFF Capital weekly pre-tax net tangible assets (NTA) was $2.78 on 24 July 2020, compared to the current share price of $2.64. That’s a 5% discount. I’d prefer to buy with a double digit discount, but a 5% discount is good for this strong-performing LIC.

Foolish takeaway

I really like all of these ASX shares. At the current prices I’d probably go for Bubs. Though I think the US election will open up some opportunities for US shares.

More reading

• My ASX share of the week
• 2 top ASX growth shares to buy for long-term growth
• Why I would buy Pushpay and these ASX growth shares in August
• Why Bubs, IAG, Star Entertainment, & Webjet shares are dropping lower
• Bubs share price sinks lower on Q4 update and new product launch announcement

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd and MAGLOBTRST UNITS. The Motley Fool Australia owns shares of and has recommended BUBS AUST 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 Got $1,500? Here are 3 ASX shares I’d buy appeared first on Motley Fool Australia.

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The oOh!Media Ltd (ASX: OML) share price closed down 3.6% yesterday.

Last week, oOh!Media looked to have snapped a lengthy losing streak, finishing the week up 6.3%. But yesterday’s losses resume the downward trend that has battered investors in the stock since the outset of the COVID-19 pandemic.

The company’s share price is now down a painful 65.8% since 20 February, when the broader market hit all-time highs. Over that same time, the All Ordinaries Index (ASX: XAO) has managed to claw back much of its early losses, currently down 15.0% from the high.

What does oOh!Media do?

Brendon Cook founded oOh!Media in 1989 under the name Outdoor Network Australia. It’s since become one of the largest operators of outdoor advertising in Australia.

Among other outlets, the company operates digital billboards in South Australia, New South Wales and the Northern Territory. It counts both Qantas Airways Limited (ASX: QAN) and Sydney Airport Holdings Pty Ltd (ASX: SYD) as major customers.

What next for oOh!Media?

Advertising companies across the board have been hit hard by the fallout of COVID-19. oOh!Media is no exception.

You need look no further than its 2 major clients listed above to see why. Many Australians have been literally stuck in their homes under rigorous lockdown conditions, and very few have travelled interstate, let alone internationally.

Hence Qantas share price has tanked 45% since 20 February, and Sydney Airport’s stock has tumbled 34.2%.

It’s hard to envision a more difficult environment for an outdoor billboard company.

At the current share price, the stock trades at a price-to-earnings ratio of 17.9 times. Until social distancing restrictions ease and travel resumes, it’s hard to see the earnings part of that equation rise.

In the meantime, the share price may have further to fall. But in my view, this stock is one to keep an eye on. It could bounce strongly on any news of a vaccine or lifting of travel restrictions.

More reading

• ASX 200 Weekly Wrap: ASX has week of high volatility
• A top ASX dividend share to buy next week
• How are 2019’s tech IPOs performing?
• Which ASX 200 shares are the safest?
• Is the Qantas share price in the buy zone?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media 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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The Westpac Banking Corp (ASX: WBC) share price will be on watch on Tuesday after the release of an update on its dealings with AUSTRAC this morning.

What did Westpac announce?

This morning Westpac provided the market with an update on a reporting issue related to Threshold Transaction Reports (TTRs) that were described in its interim results in May. TTRs are bank transfers of more than $10,000 into and out of the country.

In its results Westpac noted that it had self-reported TTR issues to AUSTRAC. This includes TTRs filed with incomplete or inaccurate information, as well as an estimated 60,000 to 90,000 TTRs that had not been reported to AUSTRAC.

However, since then, in response to a notice from AUSTRAC and following further investigations, Westpac has provided the financial intelligence agency with updated information relating to these TTR issues.

This includes approximately 175,000 transactions that were not reported to AUSTRAC and approximately 365,000 TTRs that were reported to AUSTRAC but may have contained incomplete or inaccurate information.

What happened?

The company explained that a significant proportion of the potential reporting issues relate to a range of complex scenarios where the legislation requires Westpac to exercise judgement on how multiple transactions may be aggregated and whether a threshold transaction has actually occurred.

In light of this, not all of the above TTRs may be breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act.

Westpac advised that it continues to engage with AUSTRAC in relation to its TTR issues, and notes that the numbers above may change. It also reminded investors that AUSTRAC has warned the bank that it may amend its statement of claim to include allegations arising from its investigations into these TTR issues.

New Chief Operating Officer appointment.

In other news, Westpac has announced the creation of a new Group Operating Office, bringing together Group Operations and Group Technology, and has appointed Scott Collary to lead this division as Chief Operating Officer (COO).

Mr Collary joins Westpac from the Bank of Montreal in Canada where he has held the role of Chief Information and Operations Officer for its North American Personal & Business Banking, Private Wealth and Global Asset Management divisions.

Prior to this, Mr Collary held senior positions at Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Citigroup.

More reading

• What APRA’s latest release means for ASX bank shares like Westpac
• ASX 200 Weekly Wrap: ASX has week of high volatility
• Buffett buys more bank shares: Should you?
• Will the iron ore price crash by the end of 2020?
• ASX 200 sinks 1%: IAG cancels final dividend, tech shares tumble, IGO jumps

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 Telstra Corporation Ltd (ASX: TLS) share price has been an interesting one to watch in 2020 so far. Telstra shares started the year off at $3.58 but quickly descended to a new 52-week low, along with the rest of the S&P/ASX 200 Index (ASX: XJO), when the coronavirus-induced market crash was in full swing during March.

In the worst throes of the crash, Telstra shares hit $2.87. But since then, the Telstra share price has recovered somewhat and closed trading on Monday at $3.36. From its March low to its current share price, Telstra shares have ‘only’ recovered around 16%, whereas the ASX 200 has gained more than 32% over a similar period.

So does this mean Telstra is a bargain buy right now? Or Is this old telco giant best left in the dust, as most ASX investors seem to believe?

Why are Telstra shares lagging the ASX 200?

I think the recent underperformance of the Telstra share price is a case of investors getting bored and looking elsewhere for some excitement. The coronavirus pandemic has had relatively little impact on Telstra and its business model, especially compared to other ASX shares. Telstra hasn’t yet told investors to expect any real upside or downside as a result of the pandemic yet.

In contrast, TPG Telecom Ltd (ASX: TPG) has been dominating the ASX telco news recently with its merger with Vodafone and spinoff of Tuas Ltd (ASX: TUA). It’s possible that TPG has been sucking some of the oxygen in the telco space and left Telstra with little love from investors of late.

The only substantive news we’ve heard out of Telstra is its suspension of the T22 cost-cutting campaign the company has embarking on over the last few years. As this involved reducing staff numbers, it’s very understandable (and indeed commendable) that Telstra has decided to slow this program down in the current economic climate. Of course, this also means that Telstra will be incurring more costs in the short-term that the company otherwise planned, which may also be contributing to the Telstra share price lagging. But it’s still a good thing for the company’s reputation and business health over the long-term, in my view.

Why Telstra is a great ASX dividend pick for August

Despite its cost-cutting program being put on ice, I still think Telstra is a top ASX share pick for August. Why? Well, 2 reasons.

Firstly, Telstra remains a strong dividend paying share. I don’t foresee Telstra reducing its 8 cents per share dividend when it’s due to come in late next month. That would give Telstra an annualised dividend yield of 4.8% on current prices, or 6.86% grossed-up with Telstra’s full franking. Compared with almost all other ASX dividend shares on the ASX 200, this yield helps Telstra stand out from the crowd.

Secondly, the company is investing heavily in the new generation of mobile technology — 5G. Of all the ASX telcos, I think Telstra will come out on top of the 5G race due to its existing mobile superiority and its market-leading investment in a new 5G network. The commercial benefits of 5G aren’t yet fully understood. But if 5G does turn out to be a lucrative technology, Telstra is first in line to benefit, in my view.

Foolish takeaway

I think Telstra is a solid, defensive business with a significant potential upside coming its way from 5G. As such, I think this company is a top dividend buy for August and beyond at today’s prices.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises 0.3%, Perpetual reveals large US acquisition
• Is it too late to buy the outperforming Woolworths share price and Coles share price?
• How investors can make the most of all this uncertainty
• 3 Warren Buffett quotes to start the week off right

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

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This week is one of the last chances to decide which shares to buy before earnings season starts. There are a few unique dynamics going on this year. As investors we have been speculating since the start of the coronavirus pandemic about how companies are going, yet we haven’t seen any earnings reports yet. In August, we finally get to look behind the curtain to see what is really going on.

Having said that, there are a few companies that have been diligently working away in the background that I believe are likely to deliver an earnings surprise. These companies all use an online, or software-as-a-service (SaaS) business model. Companies like this, that provide corporate functionality, have a few characteristics in common that gives them a distinct competitive advantage. 

First, as an online product there are no update cycles – it just happens. Second, as a subscription-based business model, most revenues are recurring. Third, and most importantly, retention rates are high. This means that the first movers are often the companies that dominate the sector. It is almost a winner-take-all business.    

Payroll system shares to buy

ELMO Software Ltd (ASX: ELO) provides SaaS human resources management systems. This includes HR systems, payroll, as well as rostering and timesheet functions within Australia and New Zealand. 

On 9 June, Elmo reinstated its previous guidance. The company expects to generate annual recurring revenues (ARR) of $55–$57 million. In its H1FY20 report, Elmo announced a 30.9% growth in the customer base. In addition, the company’s customer retention rate sits at approximately 92.9%. 

However, one of the most important figures is the customer concentration. For example, less than 1% of the company’s ARR comes from its largest customer and less than 6% from the top 10 customers. This is a measure of the resilience of the company’s revenue streams – Elmo could lose a big client without a large material impact.

At present, Elmo has a market valuation of approximately $599.61 million and is showing strong signs of forward momentum. It is not profitable at present and spends more than it earns to fund growth. However, the company has a cash balance of $140.3 million, and operations continued uninterrupted through the lockdown.

Although the company may surprise on the upside during earnings reports, I think it is a good share to buy for growth over the next 3–5 years, regardless.

Insurance claims management

FINEOS Corporation Holdings PLC (ASX: FCL) sells core enterprise software solutions for insurance management. It calls itself a life, accident and health (LA&H) company. The software is an SaaS module based platform. Its strength is in claims and payments management, as well as a string of additional modules to provide increased customer engagement and business intelligence. 

Based in the IT hub that is Dublin, the company is active across 8 countries. Fineos is used by 6 of the top 10 Australian life and health insurance providers, 7 out of the top 10 life and health providers in the US, and is used to process 100% of accident claims in New Zealand. Fineos is also working on expanding the footprint within each client, and adding additional functionality through artificial intelligence. 

The company has recently listed in Australia and has yet to post a profit. However, it has signalled that it is on track to beat prospectus forecasts. In my opinion, this is a good share to buy for relatively high growth in the medium term. I also believe that this company is going to surprise investors on the upside and is likely to spark a lot of interest.

Enterprise resource planning

TechnologyOne Ltd (ASX: TNE) is a company I have been following for a while now. Enterprise resource planning systems are enterprise level systems designed to manage all aspects of large organisations. In the case of TechnologyOne, this includes sectors like local, state and federal governments, utilities and infrastructure, health and community service providers, and financial companies.

TechnologyOne has been in this space for a while, although the move to a 100% SaaS model is fairly recent.  It follows a different financial year, so H1 FY20 finished in March, and FY20 finishes in September. In its half yearly report, the company revealed a 6% increase in net profit after tax and an increase in ARR of 33%. In addition, the SaaS model also meant the recent lockdowns had a relatively low impact.

I think this is a good share to buy for solid growth over the next 2–5 years at least. It should also surprise during its earnings report, in my view, although that will be later in the year.

Foolish takeaway

This collection of SaaS companies cover a range of areas. I think all of them will do well during earnings season, particularly Fineos and TechnologyOne as their figures are still relatively unknown. Each company has the benefit of high retention rates and increasing ARRs. In addition, they have all established a first mover advantage over their competitors. 

Last, and most importantly, the business models of companies like this are totally different from the IT companies of the late 20th century. Here installation and implementation is low cost, just as the ongoing subscription costs are manageable. As such, the cost of a client switching out, given the integration with enterprise business processes, is often not worth it. 

All of these reasons make these companies good shares to buy in today’s market, in my view.

More reading

• Why Audinate, Nearmap, Resolute, & TechnologyOne shares are tumbling lower
• Add these ASX small cap shares to your watchlist immediately
• How to get rich by investing in small cap ASX shares
• ASX 200 jumps almost 2% today, Afterpay rises
• Insiders have been buying TechnologyOne and this ASX 200 share

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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia has recommended Elmo Software and FINEOS Holdings plc. 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 the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher.

While a good number of shares climbed higher with the market, a few stood out with particularly strong gains that took them to new highs.

Here’s why these three ASX shares just hit record high:

5G Networks Ltd (ASX: 5GN)

The 5G Networks share price rocketed 23% higher on Monday and hit a record high of $1.95. This was despite there being no news out of the telecommunications carrier. However, given its focus on managed cloud and data centre solutions and the rapidly accelerating shift to the cloud, investors appear to be buying 5G Networks’ shares on the belief that demand for its offering is growing strongly.

Redbubble Ltd (ASX: RBL)

The Redbubble share price jumped to an all-time high of $2.50 yesterday. The ecommerce company’s shares have been on fire over the last few months after the shift to online shopping caused its sales to go through the roof. For example, last month Redbubble released an update which revealed that fourth quarter to date, marketplace revenue was up 107% over the prior corresponding period. As a result of this quicker than expected growth, its operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the period 1 July 2019 to 31 May 2020 was $11.9 million. This compares to the operating EBITDA of just $3.8 million it recorded in FY 2019.

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen Mineral share price stormed to a record high of $6.60 on Monday. Investors were buying Saracen and rest of the gold miners on Monday after the price of the precious metal broke through the US$1,900 an ounce mark and hit a record high. This has been driven by a combination of the pandemic, escalating US-China tensions, interest rate cuts, and a weakening U.S. dollar. With an all-in sustaining cost of A$1,101 an ounce, Saracen’s operations are generating material free cash flows thanks to the current gold price.

More reading

• Why the gold price just stormed to a record high
• How to take advantage of the surging gold price
• Evolution share price lower despite increased scale of opportunity
• 5 things to watch on the ASX 200 on Wednesday
• These ASX eCommerce shares are riding the online shopping wave

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. 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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Blue chip shares are among the most popular type of shares for Australian investors to buy. But with so many to choose from, it can be hard to decide which ones to buy ahead of others.

Three top blue chip ASX shares that I think would be good options in August are listed below:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s Pizza is a blue chip which I think could be a great long term option. Over the last decade Domino’s has grown its earnings at an above-average rate, leading to strong returns for its shareholders. The good news is that I believe it could do the same over the next ten years. This is thanks to its strong brand and management’s bold sales and expansion targets. In respect to the latter, Domino’s is aiming to increase its store network by upwards of 9% per annum over the next five years.

ResMed Inc. (ASX: RMD)

Another blue chip to buy is ResMed. I think the sleep treatment-focused medical device company is a great option thanks to its positive outlook due to the proliferation of obstructive sleep apnoea (OSA). Management estimates that just 20% of OSA sufferers have been diagnosed with the condition at this point. But given the growing education of the sleep disorder, I expect more and more sufferers to be diagnosed in the coming years. And given the quality of its masks and software, I believe ResMed is well-placed to benefit from this.

SEEK Limited (ASX: SEK)

A final blue chip share to consider buying is SEEK. I think the job listings company has a very positive long term outlook and could be a market beater over the 2020s. This is due to its domination of the ANZ market and the growth potential of its China-based Zhaopin business. Given Zhaopin’s strong position in a very lucrative market, I believe it has the potential to support strong overall earnings growth over the next decade.

More reading

• Does the second wave of COVID-19 make these ASX 200 healthcare shares a buy?
• All Technology Index celebrates 6 months with stunning outperformance
• 3 fantastic ASX growth shares to buy in August
• Where to invest $100,000 into ASX shares
• Buy and hold Cochlear and these ASX shares for strong long term returns

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited, ResMed Inc., 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.

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note and recorded a solid gain. The benchmark index rose 0.35% to 6,044.2 points.

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

ASX 200 expected to rise again.

The ASX 200 looks set to push higher again on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 29 points or 0.5% higher this morning. This follows a positive night of trade on Wall Street, which saw the Dow Jones climb 0.4%, the S&P 500 rise 0.75%, and the Nasdaq storm 1.7% higher.

Tech shares on watch.

Tech shares including Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be pushing notably higher today following a very positive night for their U.S. counterparts. The tech-heavy Nasdaq index jumped 1.7% overnight thanks to solid gains by the likes of Amazon and Apple. The two tech giants hit record highs on Monday. According to CNBC, market sentiment was given a boost by the coronavirus stimulus hopes and news that the U.S. government is allocating an additional US$472 million towards Moderna’s coronavirus vaccine research.

Oil prices push higher.

Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price climbed 0.85% to US$41.64 a barrel and the Brent crude oil price rose 0.4% to US$43.52 a barrel.

Gold price hits record high.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price hit a record high. According to CNBC, the spot gold price rose 2% to US$1,937.40 an ounce amid coronavirus worries and rising US- China tensions.

Credit Corp results.

The Credit Corp Group Limited (ASX: CCP) share price will be another one to watch this morning when it releases its full year results. Earlier this month the debt collector advised that it expects its net profit after tax (before one-offs) to be in the range of $75 million to $80 million in FY 2020.

More reading

• ASX 200 rises 0.3%, Perpetual reveals large US acquisition
• Is it too late to buy the outperforming Woolworths share price and Coles share price?
• How investors can make the most of all this uncertainty
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of 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.

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Fortunately, in this low interest rate environment, there are a good number of ASX shares paying investors handsome dividends.

Here are three ASX dividend shares that I think income investors should buy right now to beat low rates:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider buying is this supermarket operator. I think Coles is well-positioned to grow its dividend at a consistently solid rate over the next decade. This is because of its positive growth outlook thanks to food inflation, its refreshed strategy, defensive earnings, and expansion opportunities. Based on the current Coles share price, I estimate that it offers a fully franked ~3.5% FY 2021 dividend.

Rural Funds Group (ASX: RFF)

A second dividend share to buy today is Rural Funds. It is a leading agriculture-focused property company with a collection of quality assets throughout Australia. I’m a big fan of Rural Funds due to its long term tenancies which have been structured to allow the company to consistently increase its distribution at a solid rate each year. For example, the earnings visibility this provides means the company has already provided its distribution guidance for FY 2021. It plans to pay shareholders a 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 5.6% yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final option to consider is a dividend-focused exchange traded fund. As its name implies, the Vanguard Australian Shares High Yield ETF has a focus on high yield dividend shares. It provides investors with exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the likes of Coles, the big four banks, and high-yielding miners and telcos. At present I estimate that its units offer a FY 2021 dividend yield of at least 4.4%.

More reading

• Is it too late to buy the outperforming Woolworths share price and Coles share price?
• Coles launches new collectables! Is the Coles share price a buy?
• These shares were the ASX 200’s biggest losers last week
• ASX 200 Weekly Wrap: ASX has week of high volatility
• Beat low interest rates on savings accounts with these ASX dividend shares

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. 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.

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