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Are you interested in boosting your income portfolio with some new additions? Then below are two options to consider.

Here’s why these ASX dividend shares have been rated as buys:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to consider buying. This is due to its strong market position, focus on automation, and the normalisation of shopping trends.

It was thanks to these factors that Coles delivered a strong full year result in FY 2021. For the 12 months ended 30 June, Coles reported sales revenue growth of 3.1% to $38,562 million and net profit after tax growth of 7.5% to $1,005 million. The latter was a touch ahead of the market’s expectations.

Analysts at Morgans were pleased with the company’s performance and appear confident in its long term outlook. The broker currently has an add rating and $19.80 price target on Coles’ shares.

In addition, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. Based on the current Coles share price of $17.04, this represents yields of 3.5% and 3.6%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America. This includes the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.

While traffic volumes have been impacted by the pandemic and recent lockdowns, it is expected to rebound once trading conditions return to normal. And with New South Wales reopening this week and Melbourne edging close to doing the same, its roads could soon be filled with cars again.

Ord Minnett is very positive on the company. It currently has a buy rating and $16.20 price target on its shares.

The broker is forecasting dividends of 43 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the current Transurban share price of $13.79, this will mean yields of 3.1% and 4.6%, respectively.

The post 2 ASX dividend shares analysts love appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX 200 shares named as buys
• Why is the Transurban (ASX:TCL) share price struggling lately?
• Why this broker sees 17% upside for the Coles (ASX:COL) share price
• 2 highly rated ASX dividend shares to buy
• 2 quality ASX dividend shares analysts rate as buys

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 owns shares of and has recommended COLESGROUP DEF SET. 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Datt Capital principal Emanuel Datt reveals how he’s counting on his 2 largest holdings doubling in value in the coming year.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Emanuel Datt: Datt Capital seeks to identify high growth and special situation opportunities within Australian markets with no institutional constraint. We aim to exploit informational, analytical, behavioural and structural edges in a high prediction environment over time to really try and capture the right feel risks out there. Overall, we’re opportunistic and disciplined, with a strong emphasis on risk control. 

The fund basically blends longer duration holding, which we anticipate compounds over time, interspersed with shorter term catalyst-orientated opportunities. We recognise that time arbitrage can be a huge advantage if exploited appropriately in a disciplined manner, so accordingly the funds may have a longer duration holding profile than typical. 

The fund invests in a concentrated manner. It could be holding [fewer] than 20 positions and with the flexibility to invest across asset classes. Ultimately, we aim to hold at least 70% of the portfolio in our top 10 positions.

Biggest convictions

MF: What are your two biggest holdings?

ED: The first one would have to be Adriatic Metals PLC (ASX: ADT), which has found and advanced just a remarkable high-grade polymetallic mineral deposit in Bosnia. Polymetallic means multiple metals, basically. It also holds base metal assets in Serbia. 

In a nutshell, we consider this to be the best undeveloped mineral asset globally. It trades at a material discount at a transaction price of similar deposits that we consider to be quite inferior to this one. We believe a lot of this situation is largely due to the fact that Bosnia is not well known as a mining jurisdiction, [but] we consider it quite comparable to Serbia, which is right next door and has major companies like Rio Tinto Limited (ASX: RIO). 

When we first bought Adriatic, it was in the low $1s. It’s gone up about 3x. 

But notwithstanding, the project since that time has advanced to the point of a final investment decision and project financing, so we expect this to occur imminently. Also, basically, the project is now shovel ready. It’s just a matter of pulling the trigger for development. 

We still consider the company to be materially undervalued. We think that their value is about double the current price of about $3, and that’s really driven by the projected financial metrics, which are just absolutely incredible. On a post-tax basis, the net present value, NPV, using a discount rate of 8%, is over US$1 billion dollars. That gives it a post-tax IRR [internal rate of return] of 134%.

The project CAPEX [capital expenditure] has been paid back after only 8 months of operation, so this is just absolutely amazing, this deposit. [And] that’s only for the flagship deposit, so it really allows for the significant exploration upside because they hold all the surrounding area as well as the Serbian-based metal assets, which we think would be worth at least $100 million in the current price environment. 

That’s why we think that it’s probably only been trading at about half of the price it should. And that’s why I’d say it’s our biggest holding at this point in time.

MF: What’s your second biggest?

ED: Second biggest is a company called Metals X Limited (ASX: MLX). Metal X’s core asset is a 50% interest in the Renison Tin Mine and a tin development project known as Rentails. These assets are located in Tasmania. The company itself is only 1 of 2 listed tin producers globally. 

That’s because tin itself is a unique but very, very important niche market. Tin [is] an unsubstitutable ingredient in solder, which is used for stuff like circuit boards. The whole shift toward clean energy and a greater emphasis on technology really drives demand for circuit boards, and hence tin.

Basically, the forward projection for tin market supply is very highly constrained in terms of supply. The market itself has been in deficit for many, many years now, but there’s always been sort of a stockpile to draw down upon. But the strategic stockpile is now depleted. 

Basically, growing demand has been driven by the adoption of the new technologies, and stable, or trickling, supply has just caused the tin price to explode over the last 6 months or so. 

One important factor that we should point out is the price component. Tin, within a finished good — like a computer — is just very, very minimal. Maybe for an iPhone, it’s probably about 20 cents of an iPhone’s total cost. So when you consider that the price can really go up multiples without too much impact on the end price of the finished good…

One thing that’s really held back the company is that historically the company has tried to go into other commodities like copper and nickel. But basically, it started to shed all these non-tin assets that were accumulated by past management teams. 

It should be a pure tin player by the end of the year. 

A lot of change has really been driven by its major shareholder. They’re an Asian-based shareholder known as APAC Resources. The management team are Australian, but they come from APAC Resources. 

We think that Metals X is materially undervalued by a large factor given the strong outputs of tin, and generating a hell of a lot of cash at the moment. There’s quite a number of monetisable assets on its balance sheet, as well. I think at the moment it’s trading about 35 cents, so it really wouldn’t be a surprise to see it double over the next 6 months to a year.

The post 2 ASX shares set to double in the next year appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Why did the Rio Tinto share price struggle in the September 2021 quarter?
• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
• US warns Evergrande crisis could affect ‘entire world’

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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Is it possible that the Insurance Australia Group Ltd (ASX: IAG) share price could reach $6 by the end of 2021?

Insurance Australia Group (IAG) is one of Australia’s largest insurance businesses with a number of brands including NRMA Insurance, CGU, SGIO, SGIC, Swann Insurance, WFI and Poncho Insurance. In New Zealand it also has NZI, State, AMI and Lumley.

Some of Australia’s leading brokers have had their say on what their price targets are for the IAG share price.

A price target is where the broker thinks that the IAG share price will be in 12 months from now. So, it’s not necessarily where the broker thinks the business will be by the end of the calendar year, though it may give an indication which way the share is headed, if the broker is right.

What are the broker expectations?

Different brokers have different ideas about how the IAG share price is going to perform.

For example, Morgan Stanley has a price target on the business of $4.80. That suggests that IAG shares could drop by around 10% over the next 12 months, if the broker is right.

However, Morgan Stanley did note the win in court for insurers relating to business interruption from the pandemic. The broker doesn’t rate IAG as a buy at the moment. Instead, it thinks it is a hold.

Based on the current IAG share price, Morgan Stanley puts it at 21x FY22’s estimated earnings.

However, another broker is much more positive than Morgan Stanley.

Analysts at Macquarie Group Ltd (ASX: MQG) rate the insurance giant as a buy. The price target here is $5.70. If Macquarie is right, the shareholders could gain around 6% over the next 12 months.

Macquarie analysts believe that IAG shares are at good value and think it’s actually valued at 21x FY22’s estimated earnings.

What’s happening for the IAG share price recently?

Yesterday, IAG shares rose by 3% after the insurer noted the court win relating to business interruption.

In that announcement, it said that the Federal Court found in favour of insurers on a significant number of policy wording questions and for policyholders on other questions.

IAG said that the judgement is detailed, and a comprehensive analysis is required to assess the impact, noting it will vary by insurer.

The Federal Court has set aside time in November to hear any appeal. This is to enable any appeal of the judgement to be finalised before the end of the year, or early in the new year.

IAG is reviewing the judgement to determine whether to appeal any aspect of the judgement. It will also consider the provision it announced in November 2020 and any required update will be provided at the appropriate time.

The company wants to resolve this as quickly as it can for customers.

The post Could the IAG share price hit $6 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Why Ampol, Fortescue, IAG, & Perenti shares are charging higher
• ASX 200 (ASX:XJO) midday update: Star shares crash, tech shares tumble
• IAG (ASX:IAG) share price lifts after Federal Court makes judgement
• 2 ASX 200 shares surging this week despite inflation worries
• What happened to the IAG (ASX:IAG) share price in the FY22 first quarter?

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia 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 Westpac Banking Corp (ASX: WBC) share price is the best performing big four bank so far this year, up 32% to February 2020 levels of $26.

In terms of recent performance, shares in the leading bank boomed bewteen January and mid-June, rallying from $19.37 to a year-to-date high of $27.12.

The Westpac share price has plateaued since mid-June, broadly coinciding with the peak of lending indicators from the Australian Bureau of Statistics (ABS).

Despite Westpac shares trading sideways for the past 4 months, it has held up relatively well amid the volatile S&P/ASX 200 Index (ASX: XJO) and concerns about rising interest rates.

In an interview with Livewire, head of equities at Tyndall Asset Management Brad Potter was particularly excited about Westpac, his top bank holding.

Why this broker is bullish on the Westpac share price

Potter is bullish on the banking sector, with an overweight rating.

He views Westpac as a top pick in the sector, expecting the bank to announce a “very large” off-market buyback as part of its full-year results announcement on 1 November.

Just a week ago, the Commonwealth Bank of Australia (ASX: CBA) completed its $6 billion off-market buy-back, representing around 3.82% of its shares on issue.

CBA management described the move as “the most efficient and value-enhancing strategy to distribute CBA’s surplus capital and franking credits”.

With bank dividend yields bouncing back to the 5% level and an excess amount of capital, Potter said:

We think these buybacks and dividends will continue for a number of years given the huge amount of capital that the banks have got.

Despite a positive outlook, Potter warned that banks may struggle to keep up the momentum in the near term, facing net interest margin challenges on the back of ultra-low interest rates.

The Westpac share price closed 0.39% higher on Monday to $26.06.

The post Why this top broker is bullish on the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

More reading

• How did ASX bank shares perform in the last quarter?
• Is the Westpac (ASX:WBC) share price a buy for its 7% dividend yield?
• Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies
• How did the Westpac (ASX:WBC) share price perform in the last quarter?
• 2 buy-rated ASX dividend shares with 5% yields

Motley Fool contributor Kerry Sun 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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Luckily for income investors there are plenty of quality options for them to choose from. One of those could be the Telstra Corporation Ltd (ASX: TLS) dividend.

Why the Telstra dividend?

After years of earnings declines and dividend cuts, this telco giant is now on the path to growth again. This follows a highly successful T22 strategy and the recent announcement of its upcoming T25 strategy.

That strategy will see Telstra aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

Telstra’s CEO, Andy Penn, commented: “Today’s announcement of T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth.”

“It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia,” he added.

Dividend growth

The announcement of this strategy has many analysts believing that Telstra dividend increases could happen at long last in the coming years.

For example, the team at Goldman Sachs have pencilled in dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025.

For now, though, the broker is expecting the Telstra dividend to remain at 16 cents per share fully franked in FY 2022 and FY 2023.

Based on the current Telstra share price of $3.85, this represents a 4.1% dividend yield.

Are Telstra’s shares good value?

Goldman also sees plenty of upside left in the Telstra share price. It currently has a buy rating and $4.40 price target on its shares.

This suggests that there is 14% upside for the Telstra share price over the next 12 months. And if you include its dividend, the potential total return stretches to a very attractive 18%.

Overall, this could make Telstra a top option for investors this month.

The post When will the Telstra (ASX:TLS) dividend increase? appeared first on The Motley Fool Australia.

More reading

• Could the Telstra (ASX:TLS) share price reach $4.50 by the end of 2021?
• Why these experts say the Telstra (ASX:TLS) share price is tempting right now
• 3 ASX shares protected from rising inflation and interest rates
• Here’s what happened to the Telstra (ASX:TLS) share price in September
• When was the worst ever day on the Telstra (ASX:TLS) share price chart?

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 owns shares of 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a subdued note. The benchmark index fell 0.3% to 7,299.8 points.

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

ASX 200 expected to fall

The Australian share market looks set to drop on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower this morning. This follows a mixed start to the week on Wall Street. In late trade, the Dow Jones has dropped 0.3%, the S&P 500 has fallen 0.2%, and the Nasdaq is trading flat.

Iron ore price surges

It could be a good day for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares after the spot benchmark iron ore price surged higher overnight. According to Metal Bulletin, the spot iron ore price has jumped 9.4% to US$135.03 a tonne. This was driven by supply concerns.

Oil prices charge higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have strong days after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$80.56 a barrel and the Brent crude oil price has risen 1.5% to US$83.64 a barrel. Oil prices have hit multi-year highs amid a rebound in global demand.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,755.1 an ounce. A strengthening US dollar weighed on the price of the precious metal.

Newcrest rated as a buy

The team at Goldman Sachs see a lot of value in the Newcrest Mining Ltd (ASX: NCM) share price. This morning the broker retained its buy rating but trimmed its price target on the gold miner’s shares slightly to $30.50. This implies potential upside of 27% over the next 12 months. It commented: “NCM has the strongest balance sheet in over a decade, enabling it to fund value-accretive growth projects over the next 5-10 years and reducing project risk.”

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

More reading

• Here are the top 10 ASX shares today
• Here are the 3 heaviest traded ASX 200 shares on Monday
• Top broker tips BHP (ASX:BHP) share price to rise 48%
• ASX 200 energy shares rise amid market sell-off
• ASX 200 (ASX:XJO) midday update: Star shares crash, tech shares tumble

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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The Treasury Wine Estates Ltd (ASX: TWE) share price has broken its 4-day losing streak on Monday. At the end of the session, shares in the global wine company were trading 1.08% higher at $12.18 apiece.

Prior to today, the Treasury Wines share price had taken a 2.9% trim off the top during last week’s allotment of trading. Though, it appears investors were feeling more bullish on the wine label today. With no announcements from the company, we are left to take a look at what else might have shifted sentiment.

Cheers to freedom

Are you more of a ‘social drinker’? Not too fond of blowing the froth off a cold one at home, or popping a bottle for a party of one? Well, today marked the so-called ‘Freedom Day‘ for residents of New South Wales after a painstaking 107 days of tight restrictions. In response, people have taken the opportunity to go and experience social interaction again.

Simultaneously, things are looking positive for Victoria as it surpasses 61% of people over 16 years old being fully vaccinated. With the vaccination rate moving towards the Federal government’s 80% target for phase C, investors are beginning to look more fondly on consumer staples, such as Treasury Wines.

Importantly, as restaurants and bars are allowed to resume operations, the likelihood of increased sales to such businesses begins to improve.

Treasury Wines has navigated COVID-19 conditions throughout the past 18 months. At the end of June 2020, the company reported a profit of $250 million on revenue of $2.684 billion. Although, these figures remain down from pre-pandemic levels.

What analysts think of the Treasury Wines share price

A few weeks back, the team of analysts at Morgans retained their add rating on Treasury Wines. At the same time, the broker put a $14.01 price target on the company’s shares.

According to the note, the analysts believed the full-year result produced by Treasury Wines in FY21 was impressive given the headwinds. In addition, Morgans expect that the long-term growth story for the company remains intact.

Finally, the price target reflects a further potential 15% upside to the Treasury Wines share price. Other investors might be thinking the same based on today’s price action.

The post Why is the Treasury Wine (ASX:TWE) share price in the green today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could be very reliable
• 5 things to watch on the ASX 200 on Friday
• Treasury Wine (ASX:TWE) share price lifts following sustainability update
• Top broker tips Treasury Wine (ASX:TWE) share price to rise 17%
• 2 ASX 200 (ASX:XJO) shares that brokers rate as buys

Motley Fool contributor Mitchell Lawler 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 owns shares of and has recommended Treasury Wine Estates 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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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be worth watching closely are listed below. Here’s what you need to know about them:

BlueBet Holdings Ltd (ASX: BBT)

The first small cap ASX share to watch carefully is BlueBet. It is a mobile-first online wagering provider. It allows users to bet on all Australian and international racing and sports through its website and app. BlueBet has been growing very strongly thanks to the increasing popularity of mobile sports betting.

The good news is that the company still has a long runway for growth in both the Australian market and the enormous US market. And while the latter will be a tough nut to crack, BlueBet is forming partnerships with industry players in an attempt to gain access.

The team at Morgans are very positive on BlueBet. So much so, they have an add rating and lofty $2.57 price target on its shares.

The broker commented: “We remain attracted to BBT’s opportunity to increase its Australian market share (currently just ~1.2%) and significant, long-term growth potential from its US market entry.”

Over The Wire Holdings Ltd (ASX: OTW)

Another small cap to watch is Over The Wire. It is a one-stop-shop for information technology and telco services including data networks, VoIP, hosting, security, and support.

Over The Wire has been growing at a strong rate in recent years and this continued in FY 2021. For the 12 months ended 30 June, the company reported a 29% lift in revenue to $112.7 million and a 36% jump in EBITDA to $23.5 million.

A big positive from the result was that almost all of Over The Wire’s revenue is now recurring. This gives the company a firm foundation to build on in FY 2022 and the years that follow. In fact, management is targeting organic growth of 15% in FY 2022.

Ord Minnett appears confident in its outlook and has put a buy rating and $5.06 price target on its shares.

The post 2 stellar small cap ASX shares tipped for strong growth appeared first on The Motley Fool Australia.

More reading

• These were the 5 worst performing ASX shares in September
• Why BlueBet, Gold Road, Li-S Energy, & Myer shares are dropping
• The Bluebet (ASX:BBT) share price is down 30% in a month. What’s going on?
• 2 top small cap ASX shares analysts rate as buys
• Why the BlueBet (ASX:BBT) share price has lost 8% in a week

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 shares of and has recommended Over The Wire Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Over The Wire Holdings 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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There are some ASX dividend shares that Aussies can pick that continue to grow dividend income for investors.

A business may not necessarily be worth thinking about just because a company pays a dividend.

But these two ideas have continued to pay growing dividends over the last few dividends, including through the COVID-19 pandemic:

Brickworks Limited (ASX: BKW)

Brickworks is a fairly diversified business. It has a large building products business that produces and sells a number of things like bricks, paving, masonry, stone, roofing, specialised building systems, precast and cement.

In the US it also has a large and growing network of brick manufacturing and distribution after acquisitions.

However, Brickworks is quite clear that it’s two other asset groups that fund the dividend. The Brickworks dividend has been maintained or increased every year since 1976. That means 45 years since the ordinary dividend was last decreased. In FY21, Brickworks increased its full year dividend by 2 cents per share to 61 cents per share.

The ASX dividend share also has a joint venture industrial property trust with Goodman Group (ASX: GMG). Brickworks develops properties on excess land. It is seeing “unprecedented” demand for its industries property facilities thanks to the rapid growth in online shopping and the increasing importance of well-located distribution hubs and sophisticated supply chain solutions.

To take advantage of this, it’s also going through a period of unprecedented development. Management say that there is significant land for further development across the different industrial estates. It has a large amount of pre-commitments already secured. The completion of these facilities over the next two years will result in gross rent within the trust increasing by around $51 million and the valued of leased assets rising by $1.2 billion.

Brickworks also owns a substantial amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Soul Patts is an investment conglomerate that is more than a century old. It’s invested across a number of sectors such as telecommunications, building products, resources, resources and agriculture, with investments like TPG Telecom Ltd (ASX: TPG), Brickworks itself and New Hope Corporation Limited (ASX: NHC).

At the current Brickworks share price, it currently has a grossed-up dividend yield of 3.6%.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a large global pathology business in the healthcare sector.

It has operations across a number of countries including the USA, Germany, Australia, the UK, Ireland, Switzerland, Belgium and New Zealand.

There are three countries that make up a large majority of the revenue – the USA, Germany and Australia.

The ASX dividend share is doing a high level of COVID tests, which is adding significant levels of earnings. In FY21, the USA saw 34% organic growth with base revenue growth of 5%. Sonic pointed to increasing opportunities for commercial COVID testing here, such as travel testing.

In Germany, there was 50% organic revenue growth in FY21, with base business with of 5%. It’s the largest provider of COVID testing in Germany, with 30 laboratories.

Australian pathology saw organic revenue growth of 28%, with base business growth of 9%. It’s also the largest non-government provider of COVID vaccinations in Australia.

Sonic says that it has a progressive dividend policy and has increased its dividend for the last several years in a row.

In FY21 it paid a dividend of $0.91 per share, which was an increased of 7.1% compared to FY20. At the current Sonic share price, it has a partially franked dividend yield of 2.3%.

The post These ASX dividend shares keep giving investors a payrise appeared first on The Motley Fool Australia.

More reading

• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to buy today
• Why has the Brickworks (ASX:BKW) share price slumped 5% in 9 days?
• 2 ASX dividend shares that could be buys in October 2021

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited and TPG Telecom 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 Centuria Capital Group Ltd (ASX: CNI) share price edged lower on Monday and finished 2.1% in the red at $3.26.

Centuria shares dropped during the day despite the company announcing a key acquisition update.

Here are the key points from Centuria’s announcement.

What did Centuria Capital announce?

The company advised that its subsidiary Primewest secured a $71.2 million shopping centre in Geraldton, Western Australia.

Geraldton is a major regional gateway town in WA. The Northgate Geraldton Shopping Centre – Centuria’s asset from the purchase – is the dominant shopping centre in the area.

The city itself is supported by mining, broadacre agriculture, aquaculture fishing, tourism and logistics industries, which Centuria sees as positives for its new asset.

The announcement notes that anchor tenants Kmart and Coles contribute 49% of the gross rental income at the site with the former recently commencing a new 10-year lease.

Including other tenants at the centre, the site “provides a 4.7 year weighted average lease expiry (WALE) and is 96.3% occupied”.

Centuria, via Primewest, secured the site for “a new single-asset, unlisted closed-ended wholesale fund”.

The Northgate Geraldton Trust (NGT) has an initial 5-year term and will be open to wholesale investors from 13 October.

It forecasts a 7.25% distribution within the first 2 years and has a target equity raise of $41.8 million.

What did management say?

Speaking on the announcement, Centuria joint CEO Jason Huljich said:

The acquisition illustrates how Centuria’s larger balance sheet can support the team’s expansion across large format and neighbourhood retail markets by securing quality, well performing assets. It adds to the Group’s strong retail real estate portfolio, totalling more than $2.6 billion.

Touching on the development area itself, Huljich added:

This is a rare opportunity to secure a retail asset that’s strategically located within WA’s fourth most populated area. It benefits from strong tenant covenants with 80% of the property’s gross income derived from ASX-listed, national and multinational tenants.

Centuria Capital share price snapshot

The Centuria Capital share price has slumped 6% into the red this past month but is still up 24% this year to date.

It’s also gained 47% over the past 12 months, more than double that of the S&P/ASX 200 Index (ASX: XJO)’s approximate 20% return in this time.

The post Centuria Capital (ASX:CNI) share price slides amid $72m acquisition update appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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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