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As Australia battles the Delta strain of the coronavirus, the S&P/ASX 200 Index (ASX: XJO) has nosedived 3.8% over the last month.

It’s even more depressing to think it’s lost 5% since its mid-August peak.

So more investors are now starting to wonder about defensive ASX shares.

Pengana Australian Equities Fund is certainly thinking that way, according to a webinar seen on Tuesday.

Analyst Mark Christensen said his team is unearthing resilient stocks by applying one of 3 tests:

• Inflation protection through pricing power and long-term contracts
• Avoiding ‘forecasting errors’ for post-lockdown and post-COVID performance
• Resilience to supply chain and inventory disruptions

What does the Pengana team mean by “avoiding forecasting errors”?

“We protect ourselves here by making sure that we’re in defensively characterised businesses to start off with,” he said.

“That is businesses that are not going to have volatile earnings. Businesses that have been pretty solid through COVID and hopefully coming out of it as well. And whose underlying drivers are not so cyclical but have some fundamental growth underlay.”

The additional element the Pengana team favours is transparent business models, which provide certainty for ongoing earnings.

People need these products, it’s not a choice

Christensen cited respiratory device maker Resmed CDI (ASX: RMD) as a classic defensive example.

“People who use those products do so because they need them. It’s not discretion.”

Resmed shares are down a whopping 11.3% over the past month, but have climbed 27.4% this year despite that.

Supermarket giant Woolworths Group Ltd (ASX: WOW) is another business with a transparent revenue model and stable earnings.

“Woolworths is obviously a very defensive stock,” said Christensen.

Shares for Woolies are up nearly 16% for the year so far, but have shaved 3.6% from the price over the past month.

The other ASX shares Christensen likes for their resilience are healthcare player CSL Limited (ASX: CSL), private hospital network Ramsay Health Care Limited (ASX: RHC), and property developer Mirvac Group (ASX: MGR).

CSL and Ramsay have been hammered 6.5% and 4.3% downwards respectively in the past month. Mirvac shares have lost 6.2%.

“More than half of our portfolio is in what we call defensive names, and that helps a lot when we’re making an assessment about what future earnings look like.”

The post 5 defensive ASX shares to guide you through the market correction appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The RBA gives ASX 200 shares a slither of good news on a down day
• Is the CSL (ASX:CSL) share price a buy today?
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• How has the AMP (ASX:AMP) share price beaten the market over the past week?

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Ramsay Health Care Limited and ResMed Inc. 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 A2 Milk Company Ltd (ASX: A2M) share price will be one to watch closely on Wednesday.

This follows news that the embattled infant formula company has been hit with a class action.

A2 Milk share price on watch after class action

The A2 Milk share price could come under pressure today after Slater & Gordon Limited (ASX: SGH) revealed that it has filed a class action in the the Supreme Court of Victoria. This is on behalf of shareholders that bought A2 Milk shares between 19 August 2020 and 9 May 2021.

The law firm alleges that the infant formula company engaged in misleading or deceptive conduct in breach of the Corporations Act, and breached continuous disclosure rules when posting four guidance downgrades during the course of FY 2021.

It is because of these downgrades that the A2 Milk share price has lost 54% of its value over the last 12 months.

Slater & Gordon believes that by no later than 19 August 2020, A2 Milk was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact the company’s financial performance.

These include:

“a2’s attempts to boost sales by pushing English label infant nutrition stock through the cross-border e-commerce channel with attendant price discounting consequences would necessarily negatively impact its sales in the daigou/reseller channel.”

“a2’s sales through the cross-border e-commerce channel would in turn be impeded by the disruption to the daigou/reseller channel and the loss of associated marketing activity to stimulate consumer demand,” it added.

A2 Milk’s response

This morning A2 Milk acknowledged that it has been notified that group proceedings have been filed in the Supreme Court of Victoria.

In response, the release states: “The Company considers that it has at all times complied with its disclosure obligations, denies any liability and will vigorously defend the proceedings. The Company remains confident in the underlying fundamentals of the business and growth potential.”

The post A2 Milk (ASX:A2M) share price on watch after being hit with class action appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• How did the A2 Milk (ASX:A2M) share price perform in September?
• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to buy today
• Here’s why the A2 Milk (ASX:A2M) share price is rising again today

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 A2 Milk. 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 Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate highly right now:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share to look at is Australia’s largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.

One leading broker that is positive on the company is Macquarie. Its analysts currently have an outperform rating and $4.32 price target on its shares.

The broker believes Aurizon has ~$1 billion of balance sheet capacity that can be used to drive growth through acquisitions.

In addition, the broker is forecasting very generous dividends in the near term. It has pencilled in partially franked dividends of 28.1 cents per share in FY 2022 and then 29.5 cents per share in FY 2023.

Based on the latest Aurizon share price of $3.90, this will mean yields of 7.2% and 7.6%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. Over the last 107 years, Coles has gone from a single store in Collingwood, Victoria to one of the largest and most recognisable brands in Australia. At the last count, the company was operating over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores.

Looking ahead, the company still has room to grow its network. In addition, Coles is aiming to make its operations more efficient through cost cutting plans and its focus on automation. This includes investing heavily in new distribution centres with automation giant Ocado.

All in all, this is expected to underpin solid growth in earnings and dividends over the long term.

For now, the team at Coles are forecasting a 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 $16.94, this will mean yields of 3.6% and 3.65%, respectively.

Morgans has an add rating and $19.80 price target on Coles’ shares.

The post 2 highly rated ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Aurizon (ASX:AZJ) share price lifts following sustainability report
• 5 things to watch on the ASX 200 on Tuesday
• September hasn’t been a great month so far for the Coles (ASX:COL) share price
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
• Broker tips BHP (ASX:BHP) and this dividend share to provide huge yields

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 Australia has recommended Aurizon Holdings 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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If you’re wanting to invest in international shares for diversification, then exchange traded funds (ETFs) could help you achieve this.

But which ETFs should you look at? Here are two popular ETFs that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to 50 of the largest technology and ecommerce companies that have their main area of business in Asia.

Among the companies you’ll be owning a slice of are tech giants such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. In addition, you’ll be buying lesser known but high quality tech companies such as Kuaishou Technology, Meituan Dianping, and Pinduoduo.

In respect to the latter, Pinduoduo is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. The Pinduoduo platform connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items in bulk at lower prices. Earlier this year the company revealed that it had 788 million annual active customers.

Another share in the ETF is Tencent. It is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which connect over a billion users with each other.

And while regulatory concerns in China have been weighing on the ETF, the recent weakness in its share price could have created a buying opportunity for patient long-term focused investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to many of the world’s largest listed companies.

In fact, the ETF currently has a total of 1503 shares in its portfolio. These include companies from all sectors and almost all continents. Vanguard notes that the ETF allows local investors to participate in the long-term growth potential of international economies outside Australia.

Among its 1500+ holdings are the likes of Apple, BP, Exxon Mobil, Facebook, Johnson & Johnson, JP Morgan, LVMH, Nestle, Procter & Gamble, and Visa.

The ETF also provides investors with a source of income. Based on its current share price, the ETF’s dividend yield stands at 1.56%.

The post 2 high quality ETFs for investors in October appeared first on The Motley Fool Australia.

More reading

• Why did the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggle in September?
• Top ASX shares to buy in October 2021
• 2 top tech ETFs for ASX investors in October
• These 2 ETFs could be good long-term growth options
• 2 excellent ETFs generating strong returns for investors

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 Cettire Ltd (ASX: CTT) share price could be a good one to think about for the longer-term for a few different reasons.

What is Cettire?

Cettire is a global online retailer that offers a large selection of personal luxury goods through its website. It sells over 160,000 products including clothing, shoes, bags and accessories from more than 1,300 luxury brands.

Here are three reasons why it could be worth thinking about:

E-commerce player with network effects

Cettire operates in the growth area of e-commerce. There has been a significant increase in the number of people who are shopping online after the many impacts of COVID-19.

The ASX e-commerce share can benefit from the growth of its business with the advantages of network effects. As it gets bigger, it becomes more attractive to shoppers and its profit margins can increase.

This ASX share is investing heavily to continue to improve its technology platform, enhance its supply relationships and improve the customer experience. Cettire has a goal of becoming a leading platform for all members of the luxury value chain.

Cettire is also investing in greater localisation features in selected markets, a mobile app and continued investment in AI and brand experience. Management say that these enhancements are expected to increase automation, improve the customer experience and support conversion rates to increase revenue growth.

Fast growth

Combine the above aspects of the business with its fast growth and it can be a winning combination.

Cettire reported a lot of progress in FY21.

Revenue and profit growth can be an important factor for the Cettire share price.

In the last financial year, reported sales revenue increased 304% to $92.4 million, whilst gross revenue rose 333% to $124.5 million. Around 40% of gross revenue came from repeat customers, up from 26% to FY20.

In constant currency terms, gross revenue went up 384% and sales revenue increased 352%.

The company is generating operating profit at different levels of the financials. It reported a product margin of 37% and a delivered margin of 24%. The delivered margin rose by 243% to $22 million.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $2.1 million.

Operating cashflow surged 131% to $12.7 million thanks to its capital light model.

The statutory result was almost a profit, with a statutory loss of $0.3 million.

In July 2021, the first month of FY22, gross revenue increased 181%.

New product categories and growing reach

Cettire is steadily expanding in multiple areas that could drive the business forwards in the coming years. This could help the Cettire share price into the future.

Active customers rose by 285% to 114,830 people. It has commenced direct partnerships with brand owners, though this isn’t expected to be material in FY22.

It’s trying to make the buying experience more attractive for potential customers with free returns, if that’s what they want.

Cettire also expanded its addressable market through the entry into the children’s wear segment.

Dean Mintz, the founder and CEO of Cettire, said:

There is a significant market penetration opportunity ahead for Cettire. A key objective in pursuing our IPO was to unlock new and incremental growth opportunities, and the results over the past 12 months have proven our ability to deliver on our strategy.

The post 3 strong reasons why the Cettire (ASX:CTT) share price could be a buy appeared first on The Motley Fool Australia.

More reading

• Cettire (ASX:CTT) share price leaps another 7%, up 82% in a month
• Cettire (ASX:CTT) share price leaps another 14%, up 66% in a month. Here’s why
• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan
• These three ASX retail shares delivered double (and triple!) digit returns in 2021

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 shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire 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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How did the Macquarie Group Ltd (ASX: MQG) share price perform in September 2021?

Macquarie shares actually went up by around 9%. This is in contrast to the performance of the S&P/ASX 200 Index (ASX: XJO) which fell by 2.7%. So, Macquarie outperformed the ASX index by more than 10% last month.

On 8 September 2021, the global investment bank announced a trading update.

Macquarie’s FY22 first half update

As part of an investor presentation, it gave an update about its short-term outlook.

The company said that it expects the first half of FY22 result is going to be slightly down on the second half of FY21.

However, this would actually represent an increase on the prior corresponding period of the first half of FY21.

Regarding the first quarter of FY22, it said that the operating profit contribution was “significantly” up on the prior corresponding period, which had mixed trading conditions.

There are four segments to the Macquarie business. It has ‘annuity-style’ businesses, being Macquarie Asset Management (MAM) and the banking and financial services (BFS). The other two divisions are described as its market-facing businesses of commodities and global markets (CGM) and Macquarie Capital.

In the first quarter of FY22, it said that the annuity-style businesses’ combined net profit contribution was slightly higher on the prior corresponding period due to higher average volumes and lower provisions in BFS. However, this was partially offset by a reduced contribution from MAM because it made a gain on the sale of the rail operating lease business in the prior period, which won’t be repeated this year.

Turning to the market-facing businesses, the combined quarterly net profit contribution was up “significantly” year on year because of the sale of the UK commercial and industrial smart meter portfolio as well as “significantly” higher investment-related income in Macquarie Capital.

Profit and expectations can have an important impact on the Macquarie share price over time.

Outlook for the business

Macquarie’s Green Investment Group is one of the leading renewable energy developers and investors in the world. The investment bank sees this division as an important part of its future. It has more than $2 billion of current commitments, with more than $45 billion of committed and arranged to support green energy projects. It has more than 30GW in global development and the construction pipeline.

In terms of the medium-term outlook, Macquarie says that it remains well positioned to deliver “superior performance”, with deep expertise in major markets.

It wants to build on its strength in business and geographic diversity and continue to adapt its portfolio mix to changing market conditions.

The global investment bank says that its MAM and BFS businesses are delivering superior returns after years of investment and acquisitions.

Macquarie’s market-facing businesses are well positioned to benefit from improvements in market conditions, with “strong” platforms and franchise positions.

The overall business has an ongoing program to identify cost saving initiatives and efficiency, whilst operating with a strong and conservative balance sheet. Management believe the bank has a well matched funding profile with minimal reliance on short-term wholesale funding. Surplus funding and capital is available to support growth.

Is the Macquarie share price a buy?

The broker Citi doesn’t think so, calling it a sell on valuation grounds, with a price target of $153.

However, Credit Suisse is neutral on the business, with a price target of $175.

The post How did the Macquarie (ASX:MQG) share price perform in September? appeared first on The Motley Fool Australia.

More reading

• The most important catalyst for outperforming ASX shares: fund manager
• 2 compelling ASX shares that could be buys in October 2021
• How does the Westpac (ASX:WBC) dividend compare to the banking sector?
• These were the best performing ASX bank shares in September
• Top ASX shares to buy in October 2021

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 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) finished well off its intraday lows but still recorded a sizeable decline. The benchmark index fell 0.4% to 7,248.4 points.

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

ASX 200 expected to rebound

The Australian share market is expected to rebound on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 49 points or 0.7% higher. This follows a very strong night of trade on Wall Street. In late trade the Dow Jones is up 1.35%, the S&P 500 is up 1.4%, and the Nasdaq is up 1.6%.

Bank of Queensland rated as a buy

The team at Goldman Sachs believe the Bank of Queensland Limited (ASX: BOQ) share price could be in the buy zone. Ahead of its full year results later this month, the broker has retained its buy rating and $10.09 price target on the regional bank’s shares. Goldman expects the bank to deliver an 80% increase in cash earnings to $406 million.

Oil prices hit three-year highs

Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher today after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 1.95% to US$79.15 a barrel and the Brent crude oil price is up 1.85% to US$82.78 a barrel. Traders were bidding oil prices to three-year highs after OPEC stuck to its gradual output increase plan.

A2 Milk hit with class action

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch today after it emerged that the embattled infant formula company has been hit with a class action. Slater & Gordon Limited (ASX: SGH) alleges that a2 Milk Company was or ought to have been aware that the FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact the Company’s financial performance.

Gold price falls

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could trade lower today after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,761.7 an ounce. The precious metal dropped after the US dollar strengthened and investor sentiment improved.

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

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• The RBA gives ASX 200 shares a slither of good news on a down day
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• How has the AMP (ASX:AMP) share price beaten the market over the past week?
• Newcrest (ASX:NCM) share price lifts following annual report release
• Oil Search (ASX:OSH) share price gains 18% in 14 days. Here’s why

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 A2 Milk. 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 a lot of growth shares to choose from on the Australian share market.

To help narrow things down, I have picked out two ASX growth shares that have been rated as buys. They are as follows:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. is one of the world’s leading appliance manufacturers. As well as the eponymous Breville brand, it also has the Sage, Kambrook, and Baratza brands.

Breville has been growing at a consistently solid rate for the last decade and looks well-placed to continue this trend over the next decade. This is thanks to the popularity of its brands, its international expansion, acquisitions, favourable consumer trends, and its continued investment in R&D.

Morgans is very positive on the company’s future and expects further strong growth in the coming years. As a result, its analysts have recently put an add rating and $34.00 price target on Breville’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to look at is this pizza chain operator. Domino’s has also been growing at a consistently solid rate for over a decade thanks to the popularity of its offering and the expansion of its footprint.

Pleasingly, the future looks very positive for the company thanks to its bold expansion plans.

For example, Domino’s started FY 2022 with a total of 2,974 stores across its network. While this is undoubtedly a huge number, management is aiming to more than double this to 6,650 stores by 2033.

And it is worth noting that this is just in the markets that it is already operating in. Management highlighted that it has expanded its debt facilities, at lower margins, ensuring sufficient resources for further strategic acquisitions.

Citi is a fan of the company. It currently has a buy rating and $159.05 price target on Domino’s shares.

The post 2 excellent ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• Domino’s (ASX:DMP) share price falls 6% on its worst day since February
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• Top brokers name 3 ASX shares to buy today
• Here are 2 strong ASX growth shares analysts rate as buys
• 2 hot ASX growth shares that this income fund manager favours

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 Dominos Pizza Enterprises 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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There may be some ASX dividend shares that could provide reliability, even during times of difficult economic times.

Food is one of those industries that may see pretty consistent demand, no matter what circumstances are happening in the world.

Here are two ASX dividend shares to consider:

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns a variety of different farm types including cattle, vineyards, almonds, macadamias and cropping (sugar and cotton).

It has contracts with a number of high-quality, reliable tenants such as Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV), Olam, JBS and Australian Agricultural Company Ltd (ASX: AAC).

Rental growth is built into the contracts with the tenants. Most of the growth is either a fixed increase, or linked to CPI inflation, with some contracts having market reviews.

It’s this contracted rental income which is a large enabler of the distribution growth from the business. Management have a goal of increasing the distribution by 4% per annum. It has successfully done this over the last several years.

In FY22 it’s expecting to increase the distribution by another 4% to 11.73 cents per annum. That translates to a distribution yield of 4.4% for FY22.

The ASX dividend share is also investing in its farms to improve the productivity of them, which aims to increase the rental potential as well as the value.

Inghams Group Ltd (ASX: ING)

Inghams was founded in 1918. It’s the largest Australian poultry business and it has entered into the production of turkey and stockfeed. The business has also enhanced its processing capabilities to cater to changing consumer preferences towards value-enhanced poultry products.

In FY21 the business produced 446.9kt of core poultry volume, an increase of 4.2% on FY20.

Inghams is focused on optimising its core business, which is a program of continuous improvement, which is delivering strong outcomes, driving lower costs, enhancing yield and reducing waste. With this program, Inghams achieved better asset efficiency and return with “modest” capital expenditure. In FY21 it carried out around 200 improvement projects. It’s planning to work on 320 improvement projects in FY22.

In pre-AASB 16 terms, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 16.6% to $209.6 million, whilst underlying net profit after tax (NPAT) grew 28.4% to $101.2 million.

The ASX dividend share increased its dividend by 17.9% to 16.5 cents per share. That translates to a grossed-up dividend yield of almost 6%.

In FY22, it’s expecting a consumer recovery as vaccination rates increases and lockdowns are lifted. Volumes are expected to show continued growth with new business across various channels. It’s expecting continuing meaningful benefits when it comes to operational efficiencies across the business.

It’s currently rated as a buy by Citi.

The post 2 ASX dividend shares that could be very reliable appeared first on The Motley Fool Australia.

More reading

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• 2 ASX dividend shares with attractive 4%+ yields

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. 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 RURALFUNDS STAPLED and 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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The Reserve Bank of Australia (RBA) has given ASX 200 investors a reason to smile even as they face a mounting wall of worry.

Our central bankers followed newly installed NSW premier Dominic Perrottet by promising stability as they held the cash rate steady at the record low of 0.1% at today’s monthly meeting.

If anything, the RBA was unwavering and stuck to its tapering and interest rate plan even in the face of the COVID-19 delta outbreak.

RBA rate decision gives Delta the flick

RBA Governor Philip Lowe media release opened with the impact of delta on the Australian economy. But he didn’t appear to be concerned.  

“This setback to the economic expansion in Australia is expected to be only temporary,” said Dr Lowe.

“As vaccination rates increase further and restrictions are eased, the economy is expected to bounce back.

“Many businesses are now planning for the easing of restrictions and confidence has held up reasonably well.”

RBA gives ASX 200 shares a boost

The RBA did flag that the timing and pace of the recovery is hard to pin down. But it believes that our economy will start growing again in the current quarter.

Our central bankers are so unconcerned that it kept to its quantitative easing (QE) tapering timeline. They maintained the 10 basis points target for the April 2024 Australian Government bond and recommitted to purchase government securities at the rate of $4 billion a week until at least mid-February 2022.

The board’s optimism initially gave the S&P/ASX 200 Index (Index:^AXJO) a modest boost. But ASX 200 shares surrendered these gains to close 0.4% in the red on Tuesday.

The RBA divergence

The RBA’s steady as she goes approach to monetary policy stands increasingly at odds with other central banks. The Reserve Bank of New Zealand is tipped to start hiking interest rates at its meeting tomorrow. The US Federal Reserve has also started talking about raising rates as early as next year.

The pick-up in economic growth is one reason why these central bankers are more hawkish than the RBA. But the increasing risk of persistent inflation is another factor.

The RBA is unconcerned about inflation, despite some warning signs like the ongoing surge in energy costs.

“Wage and price pressures remain subdued in Australia,” said Dr Lowe.

“In underlying terms, inflation is running at around 1¾ per cent and wages, as measured by the Wage Price Index, are increasing at just 1.7 per cent.

“While disruptions to global supply chains are affecting the prices of some goods, the impact of this on the overall rate of inflation remains limited.”

Foolish takeaway

Economists will be praying that he’s right. Being caught behind the inflation eight ball will be a disaster for Australia as its difficult to control once the genie is out of the bottle.

Regardless, the divergence between the RBA and its global peers is almost certain to keep the Australian dollar on the back foot.

This is happening just as international holidays are starting to look like a distinct possibility again. Talk about bad timing.

The post The RBA gives ASX 200 shares a slither of good news on a down day appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau 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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