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With all the calamity in the world — a war in Europe, rising interest rates, skyrocketing oil prices — dividend ASX shares have really come back into vogue.

Growth shares that rely on future earnings have been heavily dumped in favour of more stable and profitable companies that return earnings to shareholders via dividends or buybacks.

Combine that with the S&P/ASX 200 Index (ASX: XJO) dropping almost 4% for the year, and there are many stocks out there now paying stunningly high yields.

However, an income fund manager has warned investors to not fall prey to dividend “traps”.

When a 15% return is not as good as it sounds

Plato Investment Management senior portfolio manager Dr Peter Gardner took Magellan Financial Group Ltd (ASX: MFG) as a prime example in the current market.

The dividend yield for the fund manager now sits at an outrageous 15.34%, according to Google Finance, after its share price halved since 17 December.

“We think their ability to earn fee revenue and performance fee revenue, given their performance hasn’t been great over the last year… their dividend going forward is likely to be cut in the next result,” he told a client webinar.

“That’s a dividend trap that we think investors should be wary of.”

Magellan shares closed Wednesday at $14.40.

Dividends cut already, but more potentially coming

Two other traps Gardner pointed out were AGL Energy Limited (ASX: AGL) and Lendlease Group (ASX: LLC).

At the end of last year, AGL had a yield of 10.6% and LendLease gave out 2.7%.

But such high starting points meant brutal cuts came along during reporting season, according to Gardner, and it might not be the end of it.

“We had forecast AGL especially as a strong dividend cut candidate,” he said.

“When they announced a significant cut in their dividends, the actual dividend received was 2.6%.”

Similarly, LendLease is now down to 0.5%.

And to rub salt into the wound, both ASX shares provide zero franking credits.

“We think those continue to remain dividend traps.”

AGL shares finished Wednesday at $7.21, while LendLease finished the session at $10.62.

The post 3 high-dividend ASX shares that are TRAPS: expert appeared first on The Motley Fool Australia.

More reading

• Why Arafura, Block, Magellan, and Qantas shares are storming higher
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Magellan (ASX:MFG) share price on watch after announcing share buyback
• Leading brokers name 3 ASX shares to sell today
• Top broker gives its verdict on the Magellan (ASX:MFG) share price

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Balmoral Asset Management director Angus Crennan is a trailblazer in the Australian investment community.

He might be the first fund manager in the country who shut down his global shares fund then immediately launched a new digital assets investment product.

“We’re all in on digital assets,” he told The Motley Fool.

“There’s 300 million digital assets users now. We fully expect that to be a billion by 2026. This is like double the speed of the uptake of the internet.”

While many of his former clients have been keen to jump into the world of cryptocurrencies, non-fungible tokens and the like, some are more conservative.

They worry about the risks that have been mentioned in financial media for many years.

Crennan reckons that those anxieties, while reasonable to have, are overblown. 

“It’s dispelling some of these misconceptions and these legacy issues that people are worried about,” he said.

“They’re very valid concerns. It’s just that the technology and the evolution in this space means that they’re being addressed.”

He picked out 3 of the biggest stereotypes about digital assets and explained why they’re untrue:

Myth 1: Crypto is used by criminals

Some old clients have expressed concern about how cryptocurrencies can be used by crime groups or terrorist organisations to launder their money.

Crennan admitted the anonymous nature of blockchain technologies, on which crypto and NFTs are implemented, might have meant criminals could hide many years ago.

But the whole point of blockchain is that the entire ledger is publicly viewable, and there are now third-party services like Chainalysis that track every transaction.

“They increasingly map the blockchains, and that’s really developing AML [anti-money laundering] within this digital ecosystem,” he said.

“If you think of a bank’s database of who owns what, that’s unique to the bank — Whereas the blockchain is publicly available. Everyone can see it. So that concern around AML and terrorism financing, there’s very valid arguments that’s actually a lot more overblown than people realise.”

Myth 2: Crypto destroys the environment

Another concern Crennan hears is how cryptocurrencies like Bitcoin (CRYPTO: BTC) are not environmentally friendly, as the computers that mine the coins and administer the network require huge amounts of energy.

The fund manager admitted Bitcoin itself is problematic as it uses a “proof of work” system to administer its blockchain. But most currencies implement transactions on a “proof of stake” basis, which are far more efficient.

“Proof of work is kind of like, imagine 10 people starting a race and running all the way to the end of the race, but only one of them is allowed through the gate. So then the other 9 runners have to go back to the start, and all that energy and time is wasted,” he said.

“Whereas most of the cryptocurrencies operate on a proof of stake basis and what happens there is that there’s a selection process of who’s going to do the reconciliations. What that means is modern cryptocurrencies like Solana (CRYPTO: SOL) use less energy to do a transaction than it does to do a Google search.”

Myth 3: Risk management is impossible for digital assets

Retail investors often hear of the wild volatility involved in crypto and digital assets.

Crennan would dispute the myth that risk management is impossible with a digital-only investment portfolio.

Firstly, he pointed out that the risks inherent in digital are not different to ones present in traditional investments.

“I’d add that it doesn’t matter what type of investing you do, you’re going to have counterparty and cyber risk,” he said.

“Even if you are using Macquarie Group Ltd (ASX: MQG) as your broker. It is feasible that Macquarie Group could cease to exist, right?”

Second, Crennan insisted he’s very careful about the choice of exchanges he uses.

“Some of the things that we look at are things like, how are their algorithms going to work to protect us?” he said.

“Has that exchange ever had a liquidation event where the lender has not been able to get their money back, or the counterpart has not been able to get their money back? We look at their infrastructure.” 

The Balmoral team also assesses how the exchange meets industry standards for cybersecurity and systems design.

“Do they hold everything in cold wallets? This is really important. Have they passed multiple security audits?

“Do they have an active bug bounty program where they employ white hat hackers scoping their systems for vulnerabilities on a consistent basis? And then also we look at the liquidity.”

The post Busted: 3 common ‘myths’ about crypto appeared first on The Motley Fool Australia.

More reading

• 2 dividend shares analysts rate as buys with big yields and even bigger upside
• 5 things to watch on the ASX 200 on Thursday
• 2 highly rated ASX shares analysts are tipping as buys
• Why did the Nickel Mines share price rebound today?
• ‘Significant step’: What’s boosting the Telstra share price this week?

Motley Fool contributor Tony Yoo owns Bitcoin, Macquarie Group Limited, and Solana. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool Australia owns and recommends Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re in the market for some dividend shares, then look no further. Listed below are two highly rated ASX dividend shares that analysts have recently rated as buys with yields greater than 5%.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share for investors to consider is Bank of Queensland. It could be a good option for investors that don’t already have meaningful exposure to the banking sector. Particularly at the current level, which the team at Morgans sees as very attractive.

Its analysts said: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

Morgans is expecting fully franked dividends per share of 48 cents in FY 2022 and then 55 cents per share in FY 2023. Based on the current Bank of Queensland share price of $8.27, this will mean yields of 5.8% and 6.7%, respectively. The broker also sees plenty of upside for its shares with its $11.00 price target.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share to look at is the HomeCo Daily Needs REIT. This property company, which recently merged with Aventus, invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.

HomeCo Daily Needs has been a strong performer so far in FY 2022. During the first half, it delivered a 38% increase in funds from operation (FFO) per share to 4 cents, which led to management upgrading its full year guidance. This and recent share price weakness appear to have caught the eye of Goldman Sachs.

It commented: “We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.”

Goldman has a buy rating and $1.70 price target on its shares. And based on the current HomeCo Daily Needs share price of $1.36, it is expecting dividend yields of 6% in FY 2022 and 6.6% in FY 2023.

The post 2 dividend shares analysts rate as buys with big yields and even bigger upside appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Bargain buy? Broker tips Bank of Queensland (ASX:BOQ) share price to rise 37%
• The Bank of Queensland (ASX:BOQ) share price has lost half its value in 15 years. How is the bank’s turnaround strategy going?
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• 3 reasons why Soul Pattinson (ASX:SOL) is a strong ASX dividend share idea

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a good day and stormed notably higher. The benchmark index rose 1.1% to 7,175.2 points.

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

ASX 200 expected to rise again

The Australian share market is poised to rise again on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 1% higher this morning. In late trade on Wall Street, the Dow Jones is up 1%, the S&P 500 is up 1.6%, and the Nasdaq has jumped 2.9%.

US Fed raises rates

The US Federal Reserve has elected to increase interest rates for the first time in more than three years. The central bank revealed that it made its 0.25% increase in an effort to address rising inflation without stunting economic growth. This brings the rate into a range of 0.25%-0.5%. But it won’t stop there. According to CNBC, the Fed intends to lift rates at each of the six remaining meetings this year.

Oil prices fall

It could be a subdued day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$95.40 a barrel and the Brent crude oil price is down 1.6% to US$98.31 a barrel. Russian-Ukraine optimism and the release of US inventory data weighed on prices.

Westpac shares rated as a hold

Westpac Banking Corp (ASX: WBC) shares are a hold according to the team at Bell Potter. According to a note, the broker has retained its hold rating but lifted its price target on Australia’s oldest bank to $25.00. The broker notes that Westpac has appointed a Chief Transformation Officer, Yianna Papanikolaou. However, its analysts said: “it remains to be seen if this is a wise move in de-risking the bank’s overall change and investment thesis – and especially if cutting costs purely to $8.0bn in FY24e is the only thing that matters to date.”

Gold price drops

It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped again. According to CNBC, the spot gold price is down 0.4% to US$1,921.8 an ounce. The precious metal came under pressure after the Fed increased rates.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• If you invested $10,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now
• Is the CSL share price heading back over $300 in 2022?
• Why has the Westpac share price rallied 8% in a week?
• Why are ASX renewable shares struggling in 2022?
• Does the AFIC (ASX:AFI) dividend beat the ASX 200?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Looking for investment ideas for March? Listed below are two high quality options to consider right now.

Here’s what you need to know about these ASX shares:

REA Group Limited (ASX: REA)

The first ASX share to consider is property listings company REA Group. It is best-known for the realestate.com.au website, which has been dominating the ANZ market for years.

This domination continued in FY 2021, with the company recording an average of 121.9 million monthly visits to its website. This was up 35% year on year and was 3.3 times greater than its nearest competitor. Pleasingly, this strong form has continued in FY 2022, with REA once again reporting 3.3 times more visits than its nearest rival. This includes a record 13.2 million people visiting its local site in October.

In light of this dominance, the strength of the housing market, and new acquisitions and revenue streams, REA Group has been tipped to continue its growth in the coming years by the team at Goldman Sachs. Its analysts recently put a buy rating and $167.00 price target on the company’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX share to look at is TechnologyOne. It is Australia’s largest enterprise software company, providing a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers. At the last count, there were well over 1,000+ leading corporations, government agencies, local councils and universities being powered by its software.

This has underpinned strong recurring revenue growth, which is expected to continue in the coming years. For example, management is targeting annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.

Pleasingly, management appears confident it will achieve this target. It commented: “Our SaaS business continues to grow quickly. The quality of this revenue stream is exceptionally high, given its recurring contractual nature, combined with our very low churn rate of ~1%.”

“With our fast-growing SaaS business and the announcement of the end of our On-Premise business, we are on track to hit our target of $500m+ ARR by FY26.”

Bell Potter is a fan and has a buy rating and $15.00 price target on its shares.

The post 2 highly rated ASX shares analysts are tipping as buys appeared first on The Motley Fool Australia.

More reading

• 52-week low: Broker says the REA (ASX:REA) share price has 30% upside
• Broker names the 3 best ASX tech shares to buy today
• 5 ASX 200 shares slipping to 52-week lows today
• Are these 2 ASX tech shares good buys in March?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nickel Mines Ltd (ASX: NIC) share price closed almost 4% higher today ahead of the restart in nickel trading on the London Metal Exchange.

Nickel Mines shares finished the day at $1.20, a 3.9% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) closed 1.1% higher today.

Let’s take a look at what is happening at Nickel Mines.

All eyes on the London Metal Exchange

The Nickel Mines share price made a healthy gain ahead of the resumption of nickel trading on the London Metal Exchange (LME). Trading of the metal will recommence at 8am London time on 16 March. This is three hours after the ASX closes.

The reopening in London comes after the LME suspended nickel trading last week amid nickel prices hitting record highs above US$100,000 a tonne.

Nickel Mines was not the only ASX nickel share to jump today. Panoramic Resources (ASX: PAN) leapt 3.36% while IGO Ltd (ASX: IGO) and Mincor Resources (ASX: MCR) both climbed 1%.

Nickel Mines was one of the top three most traded ASX 200 shares by volume on Wednesday, as my Foolish colleague Sebastian reported.

Earlier this week, Nickel Mines reported the Oracle Nickel Project in Indonesia had been granted corporate tax relief. Nickel Mines hopes to complete its 70% stake in the project by the end of the year.

Last week, Nickel Mines dealt with media speculation about a short position in LME nickel held by the Tisinghan group. Tsingshan informed the company it had no intention of buying or selling any Nickel Mines shares. Yesterday, Tsingshan reached a standstill agreement with its banks to avoid further margin calls, according to reporting by Bloomberg.

Earlier, Nickel Mines also withdrew a share purchase plan after receiving applications totalling $57 million. The company had been aiming to raise $18 million.

Nickel mines share price snapshot

The Nickel Mines share price has dropped almost 18% in the past year, falling 16% year to date.

In the past week alone, the company’s shares have shed around 19%.

For perspective, the benchmark index has returned around 5% over the past year.

The post Why did the Nickel Mines share price rebound today? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Wednesday
• GameStop 2.0? What you need to know about the nickel short squeeze and how it’s impacting ASX shares
• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• These 3 ASX 200 shares are topping the volume charts on Monday
• Why Nickel Mines, Paladin Energy, Tassal, and Westgold shares are dropping

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price has climbed nearly 3% since market close on Friday. Meanwhile, the telco has commenced a major upgrade to its national fibre network.

Telstra shares gained 1% on Wednesday. For perspective, the S&P/ASX 200 Communication Services Index (ASX: XTJ) jumped 1.8% today.

Let’s take a look at what is happening at Telstra.

Fibre build commences

Telstra has started work on a revamp of its national fibre network. The aim is to improve the size, reach and bandwidth of the network.

On Tuesday, the company began construction in Western Australia between Bakers Hill and Northam. Orange in New South Wales will be the next construction destination.

The project will add 20,000 new route kilometres to Telstra’s existing network and deliver transmission rates of more than 650 gbps (gigabits per second). This is six times more than the standard rate of 100gbps. The network has dual cables on each fibre route.

Telstra InfraCo chief executive Brendon Riley commented on the upgrade:

It’s a significant step toward the fibre network Australia deserves. It’s the fibre network that will power everything from small businesses selling to their local neighbourhood, through to cutting-edge Australian innovators creating their businesses in the metaverse.

It forms part of our ambitious T25 transformation goal for InfraCo, to deliver profitable growth and value by improving access, utilisation and scale of our infrastructure.

On Monday, speculation emerged Telstra may be considering buying a 51% stake in Fetch TV. The idea is to potentially “compete with Apple and Google”.

Telstra has recently been rated as an add by Morgans with a $4.56 price target, my Foolish colleague James reported on Sunday.

Telstra share price recap

The Telstra share price is up 26.6% over the past 12 months, but shares in the telco have dropped 5.5% year to date.

For perspective, the S&P/ASX 200 Communication Services Index (ASX: XTJ) has returned 14% in a year.

Telstra has a market capitalisation of more than $46 billion based on its current share price.

The post ‘Significant step’: What’s boosting the Telstra share price this week? appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) share price climbs amid rumours the telco plans to take on US giants
• 2 buy-rated ASX 200 dividend shares with top yields
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why was everyone talking about the Telstra (ASX:TLS) share price today?
• Own Telstra shares? Here’s why the telco faces new legal action

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Macquarie Group Ltd (ASX: MQG) share price has rocketed over the past decade, up almost 600%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 68% over the same timeframe.

During January 2022, Macquarie shares reached an all-time high of $217.32 before freefalling thereafter. While the bank’s shares have somewhat recovered, they are still some way off moving again into uncharted territory.

Nonetheless, let’s wind the clock back and see how much an investor would have made if they had invested $10,000 in Macquarie shares a decade ago.

How much would your initial investment be worth now?

If you spent $10,000 on Macquarie shares exactly 10 years ago, you would have picked them up for $27.07 apiece. The purchase would deliver approximately 369 shares without reinvesting the dividends.

Looking at today’s closing price, the Macquarie share price finished at $189.44. This means those 369 shares would be worth $69,903.36 (369 shares x $189.44).

In percentage terms, the initial investment implies a yearly average return of 21.46%. Comparing that to the ASX 200, the benchmark index has given back 5.19% over a 10-year period.

And the dividends?

Over the course of the last decade, Macquarie has made a total of 20 dividend payments from 2012 to 2022. Its most recent dividend distributions were significantly reduced due to the pandemic severely affecting its operations and bottom line.

Adding those 20 dividend payments gives us an amount of $40.07 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $14,785.83 (369 shares x 40.07).

When putting both the initial investment gains and dividend distribution, an investor would have made $84,689.19.

Macquarie share price snapshot

Over the past 12 months, the Macquarie share price has travelled 25% higher but is down almost 8% year to date.

Macquarie presides a market capitalisation of roughly $72.6 billion and has more than 383 million shares on its registry.

The post If you invested $10,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

More reading

• Is the CSL share price heading back over $300 in 2022?
• Does the AFIC (ASX:AFI) dividend beat the ASX 200?
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Why I closed my shares fund then launched a digital assets fund
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX dividend shares are able to pay investors a higher level of income than some other types of assets.

Businesses can choose to pay out a high level of their profit or cash flow each year to shareholders. When combined with capital growth, it can lead to pleasing total returns.

But a company isn’t necessarily worth buying just because it pays a dividend. Analysts have rated these ASX dividend shares as a buy, with expectations of sizeable future dividends:

Adairs Ltd (ASX: ADH)

Adairs is a retail ASX share that runs three different businesses – Adairs, Mocka and Focus on Furniture.

Since the start of 2022, the Adairs share price has sunk 30%. However, the decline of a valuation can have the benefit of an increasing potential dividend yield.

The broker Morgans currently rates Adairs as a buy, with a price target of $3.50. That’s more than 20% higher than where it is today.

How big could the dividends be? Morgans is expecting a grossed-up dividend yield of 9.6% in FY22 and a grossed-up dividend yield of 13.2% in FY23. Profit is expected to bounce back in FY23 after the COVID-19 lockdowns during the first half of FY22.

Adairs plans to grow future profit in several ways. It is going to upsize some of its stores, which are materially more profitable than smaller stores. Adairs wants to add more stores to its network, particularly with the newly acquired Focus on Furniture.

The ASX dividend share also wants to save costs and fulfil more online orders with its new national distribution centre. This new distribution centre is expected to save more than $3 million of annual expenses.

Morgans’ forecasts suggest that the Adairs share price is valued at 7x FY23’s estimated earnings.

JB Hi-Fi Limited (ASX: JBH)

Despite all of the volatility in 2022, the JB Hi-Fi share price has actually gone up this year. But only just, with a rise of 1.3%.

Morgans also thinks that JB Hi-Fi is a buy, with a price target of $57. That suggests a possible rise of 15% over the coming year, if the broker’s prediction comes true.

The broker was impressed by JB Hi-Fi’s half-year result, with profitability stronger than expected. Morgans thinks the ASX dividend share is a very capable business with good competitive advantages.

For readers that missed the interim result last month, total sales fell 1.6% to $4.86 billion and net profit after tax (NPAT) dropped 9.4% to $287.9 million. The interim dividend was reduced by 9.4% to $1.63 per share. JB Hi-Fi also announced a capital return of up to $250 million through an off-market buyback.

The retailer reported that in January 2022 it continued to see heightened demand. Compared to January 2021, JB Hi-Fi Australia sales were up 3.6% and The Good Guys sales increased 1.9%.

In terms of the expected dividend payouts, Morgans has estimated a grossed-up dividend yield of 7.5% for FY22 and 6.9% in FY23.

The post 2 ASX dividend shares rated top buys by brokers appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 excellent ASX dividend shares with big yields to buy
• Broker names 2 high yield ASX dividend shares to buy right now
• Analyst tips 20% upside and 6.5% dividend yield for this ASX share
• 2 ASX dividend with attractive yields that brokers rate as buys
• What’s the outlook for ASX retail shares like Kogan (ASX:KGN)?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Looking for some small cap shares to buy? Then have a look at the ones listed below.

Here’s why they could be worth getting better acquainted with:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is Airtasker. It is a growing online marketplace provider for local services that estimates that it has a total addressable market of $600 billion across Australia, the UK, and the US. This sizeable opportunity has caught the eye of the team at Morgans. As has its attractive business model, which the broker highlights works for both sides of the marketplace and has attractive unit dynamics. Morgans also points out that this market is in the early stages of ecommerce adoption, which bodes well for Airtasker’s future growth.

Morgans has an add rating and $1.25 price target on the company’s shares.

PlaySide Studios Limited (ASX: PLY)

Another small cap ASX share to look at is PlaySide Studios. It is one of the largest video game developers in Australia with a growing portfolio of titles. In addition, the company has recently announced work for hire deals with games publishing giants 2K Games and Activision Blizzard. This demonstrates its growing reputation in the industry and could open the door to other deals in the future.

Canaccord Genuity is a fan of PlaySide. It currently has a buy rating and $1.30 price target its shares.

Serko Ltd (ASX: SKO)

A final small cap to look at is this online travel booking and expense management provider. Serko was hit hard by the pandemic but is bouncing back strongly now. And with the company well-funded thanks to a recent capital raising, it can now focus on its global marketplace strategy. This strategy is aiming to transform the company from an online booking tool into a distributed marketplace. This will also be supported by its game-changing deal with Booking.com.

Ord Minnett remains very positive on Serko. Last month it put a buy rating and $7.93 price target on its shares.

The post 3 small cap ASX shares analysts are tipping for big things appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Serko Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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