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The COVID-19 pandemic has impacted ASX shares in a number of different ways. While most Aussie shares were smashed in the March 2020 bear market, the subsequent 12 to 18 months have made for interesting viewing.

Almost every company has had to adapt to changing circumstances. Border restrictions, reduced venue capacity and changing demand for products and services have forced a rethink across the board.

Here are 3 ASX shares that have been surging higher in 2021 on the back of changing Aussie lifestyle trends.

Afterpay Ltd (ASX: APT)

It may come as no surprise that Afterpay shares have performed strongly in recent months. Shares in the buy now, pay later (BNPL) leader have climbed more than 10% in 2021 and are up nearly 80% in the last 12 months.

The share price surge has been driven by a number of factors including Afterpay’s proposed takeover by Square Inc (NYSE: SQ). However, Afterpay’s underlying sales figures have also been very strong, driven by a continued consumer shift towards digital retail.

Afterpay’s customers have been spending big with the company’s merchant partners. That has driven a 90% increase in FY21 underlying sales to $21.1 billion and pushed the ASX share higher.

Investors will be hoping that the online shopping trend continues long after COVID-19 restrictions have ended.

ARB Corporation Limited (ASX: ARB)

ARB designs, manufactures, distributes and sells motor vehicle accessories and other light engineering products. That means the ASX share has a significant presence in the Aussie motor vehicle accessories market.

Many investors would be aware of how hot the Aussie vehicle market is right now. COVID-19 restrictions have reduced supply while many Aussies have extra disposable income due to restrictions on movement where they would otherwise spend their money, such as travel.

ARB reported a 34% increase in FY21 sales to $623.1 million with earnings per share surging 95% to 140 cents per share. That’s a fairly good indication of demand-driven gains with ARB a beneficiary of this recent Aussie lifestyle change.

James Hardie Industries plc (ASX: JHX)

James Hardie is an Irish-headquarter, dual Australian and US-listed cement manufacturing company. It might surprise some to see this multinational group on the list of those benefitting from Aussie lifestyle changes.

However, there has been one enormous lifestyle shift in the past 12 to 18 months — home building. Cashed up Aussies are turning to home renovations and new builds to capitalise on more disposable income as well as government stimulus schemes such as HomeBuilder.

That has been good news for this ASX share which is up more than 35% year to date.

Foolish takeaway

These are just a few ASX shares benefitting from Aussie lifestyle changes in recent months.

Investors in these listed companies have seen strong investment gains in 2021 thanks to sustained demand propelling earnings and growth higher.

The post These ASX shares are surging on the back of key Aussie lifestyle trends appeared first on The Motley Fool Australia.

More reading

• ASX tech shares are leading the market’s gains on Thursday
• Why the Afterpay (ASX:APT) share price is charging 4.5% higher
• The Square share price jumped 4% overnight. What could this mean for Afterpay (ASX:APT) shares?
• Afterpay (ASX:APT) share price slips despite new ‘Retro’ launch
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Ken Hall 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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended ARB 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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Last week certainly was an eventful one for the S&P/ASX 200 Index (ASX: XJO). After a series of ups and downs, the benchmark index ended the week 0.8% lower than where it started it at 7,342.6 points.

Fortunately, not all shares dropped lower with the market. Here’s why these were the best performers on the ASX 200 last week:

Ausnet Services Ltd (ASX: AST)

The AusNet share price was the best performer on the ASX 200 last week by some distance with a gain of 28.8%. Investors were scrambling to buy the electricity distributor’s shares after it received a takeover approach. Brookfield Asset Management has made a non-binding offer to acquire the company for $2.50 per share. This was a 26% premium to Ausnet’s last close price. AusNet granted Brookfield with the eight weeks of exclusive due diligence, much to the dismay of APA Group (ASX: APA). It made a $2.60 per share bid a day later which isn’t being considered at this stage.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price was a strong performer and recorded a gain of 11.8% over the five days. The catalyst for this was a solid rise in oil prices during the week. This was driven by tightening supplies due to solid fuel demand in the United States and lower production in the Gulf of Mexico after Hurricane Ida.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price wasn’t far behind with a gain of 11%. This may have been driven by a positive broker note out of UBS. On Tuesday, the broker retained its buy rating and lifted its price target on the corporate travel company’s shares to $24.80. UBS upgraded its estimates for travel shares to reflect improving vaccination rates.

News Corp (ASX: NWS)

The News Corp share price was on form and stormed 10.6% higher over the five days. There were a couple of catalysts for this gain. One was confirmation that its buyback program will continue with another US$1 billion shares to be bought back. The second was a bullish broker note out of Goldman Sachs. According to the note, the broker has reiterated its conviction buy rating and $44.50 price target on its shares.

The post These were the best performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• Guess which sector this week’s top performing ASX 200 shares come from
• Why the embattled AGL (ASX:AGL) share price is surging higher today
• Which ASX 300 shares are the top movers today?
• The News Corp (ASX:NWS) share price is leaping 8% today. Here’s why
• Why Bapcor, Brickworks, News Corp, & Premier Investments are rising

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 APA Group and Corporate Travel Management 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 two ASX shares in this article could be good considerations to look at for the long-term.

Both of these businesses had a strong FY21 and want to grow over the coming years.

One of them is an online-only business, whilst the other has only just started tapping into the potential of e-commerce.

At the current share prices, these two companies may be good options:

Nick Scali Limited (ASX: NCK)

Nick Scali is an ASX retail share that sells furniture pieces, although it’s planning to offer more products over time.

FY21 was a very strong year for the business. It delivered sales revenue growth of 42.1% to $373 million, whilst underlying net profit after tax (NPAT) doubled to $84.2 million. The earnings before interest and tax (EBIT) margin improved by 940 basis points to 32.7%.

It added three new showrooms over the year, adding one in NSW, one in Victoria and one in New Zealand. In July 2021 the company opened another showroom in New Zealand. Management said that the company will benefit from a full year of trading from these new stores. It now has a network of 61 showrooms with a long-term target of 85.

The ASX share generated online written sales orders for FY21 were $18.3 million compared to $3 million in FY20. The EBIT contribution from the online channel for FY21 was $8.8 million, compared to $0.6 million in the prior year.

Whilst July 2021 written sales orders were down 27% year on year, those orders were up 24% on July 2019, despite the Sydney lockdown. New Zealand written sales orders were up 91% and online growth was 88% in July 2021.

Nick Scali says that the company’s future will be primarily driven by the continuing store network growth and increasing online penetration.

Macquarie Group Ltd (ASX: MQG) currently rates Nick Scali as a buy with a price target of $13. It’s attracted to the increasing number of stores, good trading and the possibly of bolt-on buys. Macquarie thinks Nick Scali is valued at 15x estimated forward earnings.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is an e-commerce business that sells beauty products through its website. It actually has around 10,800 products from 260 brands.

The ASX share is benefiting from the structural shift to online and ongoing retention of new customers added during COVID-19.

Adore Beauty is pursuing a growth strategy with heavy investing to build on its online market leadership position. Businesses believe that it’s well positioned to capture market share in a large and growing market, benefiting from structural tailwinds.

Over the long-term, scale benefits are expected to increase operating leverage and achieve more earnings before interest, tax, depreciation and amortisation (EBITDA) profit margin growth.

In FY21, revenue rose 48% to $179.3 million. Active customers rose 39% to 818,000 and ‘returning customer’ growth was 64% year on year. Annual revenue per active customer increased 7% to $219, driven by “strong” customer retention and increasing average order value.

Despite the heavy investment, profitability is rising. The gross profit margin increased by 1.2 percentage points to 33.1% whilst EBITDA jumped 53% to $7.6 million.

In the first few weeks of FY22, the ASX share saw revenue growth of 26% on the prior corresponding period.

UBS currently rates Adore Beauty as a buy, with a price target of $6.

The post 2 ASX shares that may be worth researching this weekend appeared first on The Motley Fool Australia.

More reading

• 3 rapidly growing ASX tech shares to buy
• Why Adore Beauty, ALE Property, Ausnet, & Zoom2u shares are charging higher
• 2 exciting small cap shares tipped as buys
• 2 ASX dividend shares that could be buys with yields above 4%
• 2 beauty ASX shares delivering attractive growth

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 recommended Adore Beauty Group Limited. 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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The National Australia Bank Ltd (ASX: NAB) share price has been pushing higher over the last 12 months, up 60%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has posted a 24% gain.

At Friday’s market close, NAB shares added to the strong gains, finishing 1.03% higher to $27.35.

What did NAB last report?

Investors have been bidding on the NAB share price in 2021 as the company continues to impress the market.

In early August, NAB updated the ASX with its third-quarter scorecard, highlighting an “encouraging” performance.

Cash earnings rose by 10.3% to $1.7 billion compared with Q3 last year, supported by significantly better credit impairment outcomes. Particularly, momentum picked up across its business portfolio.

In Australia, house lending rose 2% along with the small-to-medium business segment, growing 4.3%. The New Zealand segment saw lending increase by 2.7%.

Unaudited statutory net profit for the group came to $1.65 billion.

NAB noted that continued COVID-19 outbreaks and lockdowns are creating uncertainty and challenges for some customers. However, it remains optimistic on the long-term outlook for both Australia and New Zealand.

It appears that the bank is poised for a strong return when the economies re-open following the accelerated vaccination programs.

How much is NAB scheduled to pay in dividends?

The bank is scheduled to report its full-year results on 9 November. Investors may be wondering what kind of dividend payment to expect ahead of the release.

NAB paid a fully franked dividend of 60 cents per share in July for the first half of FY21. This was double of FY20’s dividend (30 cents) and also double of the prior corresponding period (H1 FY20).

Goldman Sachs is forecasting NAB to reward shareholders with a total FY21 dividend payment of 125 cents. This implies a final dividend payment for FY21 of 65 cents per share.

When calculating against the current share price, NAB is trailing on a forecast fully-franked dividend yield of 4.4%. It is expected that the payout ratio will be somewhere between 68% to 70% of the bank’s profits.

It’s worth remembering that the company has been a relatively consistent dividend payer over the years. Before the onset of COVID-19, the bank had been paying shareholders fully franked dividends of 99 cents on a bi-annual basis.

About the NAB share price

In 2021, the NAB share price has continued to rise in value, gaining more than 20% for investors.

NAB commands a market capitalisation of approximately $89.76 billion, with about 3.2 billion shares on its books.

The post NAB (ASX:NAB) share price is now trading on a forecast 4.4% fully franked dividend yield appeared first on The Motley Fool Australia.

More reading

• Why NAB (ASX:NAB) and this ASX dividend share could be buys
• Could it be time to consider buying NAB (ASX:NAB) shares?
• How could a stock market correction impact ASX 200 bank shares?
• Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?
• The NAB (ASX:NAB) share price has just had a lousy week, what’s next?

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 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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It certainly has been a disappointing month for the BHP Group Ltd (ASX: BHP) share price.

The mining giant’s shares finished the week with a decline of almost 2% to $37.72.

This means the BHP share price is now down 17% since the start of September.

What’s next for the BHP share price?

Where the BHP share price goes next will largely depend on commodity prices.

However, unlike Fortescue Metals Group Limited (ASX: FMG), which only produces iron ore, BHP has a diverse portfolio of operations across several commodities. This means the company has some protection from the weakening iron ore price.

In light of this, could the recent pullback in the BHP share price be a buying opportunity for investors?

Is this a buying opportunity?

The team at Macquarie appear to believe this is a buying opportunity.

In fact, just last week the broker retained its outperform rating and $56.00 price target on its shares.

Based on the current BHP share price, this implies potential upside of 48% for the company’s shares over the next 12 months.

And that’s before dividends. Macquarie is also forecasting a fully franked 10% dividend yield in FY 2022.

What else is being said?

Last week analysts at Morgans retained their hold rating with a price target of $45.20. This still implies potential upside of 20%, which isn’t bad for a hold rating!

The main reason the broker isn’t upgrading BHP or Rio Tinto Limited (ASX: RIO) shares to a buy rating just yet is its belief that iron ore prices could still fall further.

It commented: “We remain bearish on iron ore in the short term and think it has further to fall. We are watching steel numbers closely but find it impossible to gain any positive conviction while iron ore is in freefall.”

“Both stocks are trading around accumulate territory but again we remain cautious given the poor state of their largest exposure,” Morgans added.

The post The BHP (ASX:BHP) share price is down 17% in September so far. What’s next? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 blue chip shares that might be the best to buy
• Iron ore price surges 17% as Evergrande fears ease further
• Bank of America flags more headwinds for ASX 200 iron ore shares
• AMP Capital’s chief economist on Evergrande and ASX 200 resource shares
• Evergrande on investors’ minds and miners in focus. Scott Phillips on Nine’s Late News

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 S&P/ASX 200 Index (ASX: XJO) was out of form last week. Concerns over Chinese property giant Evergrande’s financial position weighed on sentiment. This led to the benchmark index losing 0.8% of its value to end the period at 7,342.6 points.

While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price was the worst performer on the ASX 200 last week with a 12.8% decline. Investors were selling the nickel producer’s shares amid concerns that the company could be negatively impacted by tax changes in Indonesia. The company advised that the Indonesian Investment Minister was reported as suggesting that Indonesia is exploring the possibility of levying an export tax on nickel products with less than 70% nickel content.

NRW Holdings Limited (ASX: NWH)

The NRW share price wasn’t far behind with a weekly decline of 11.5%. There were a couple of catalysts for the mining services company’s share price weakness. The first was that NRW’s shares were officially kicked out of the ASX 200 on Monday at the quarterly rebalance. In addition, on Thursday the company’s shares traded ex-dividend for its fully franked final 5 cents per share dividend.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price was out of form and dropped 8.3% over the five days. Investors were selling Gold Road and other gold miners last week after the price of the precious metal pulled back. Traders were selling gold on the belief that the US Federal Reserve may start to raise interest rates sooner than expected.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was a poor performer and tumbled 8.2% last week. This appears to have been driven by weakness in commodity prices following concerns over the Chinese economy. The neodymium price has been a particularly poor performer recently, putting pressure on this rare earths producer’s shares.

The post These were the worst performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• It’s been a terrible week for the Lynas (ASX:LYC) share price. Here’s why
• The ANZ (ASX:ANZ) share price is trailing behind the big four today
• September has not been a great month for the Mineral Resources (ASX:MIN) share price
• Evergrande threat delayed, US Fed flags a return to normal. Scott Phillips on Nine’s Late News
• ASX 200 (ASX:XJO) midday update: Telstra buys Vita stores, Cochlear sinks

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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There are a number of S&P/ASX 200 Index (ASX: XJO) blue chip shares that may be worth thinking about for the long-term at the current prices.

These are businesses that have seen significant share price declines in recent weeks but have long-term growth plans.

They are amongst the biggest in their industries on the ASX and have scale benefits:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a fund manager with funds under management (FUM) of around $118 billion, which continues to rise over time.

However, despite the rise in FUM, the Magellan share price has declined by 30% over the last two months.

The FUM growth is what drives the underlying profit of the funds management business higher. In FY21, the average funds under management (FUM) rose 9% to $103.7 billion, leading to profit before tax and before performance fees of $526.6 million, an increase of 10%. Funds management costs were only around 16% of income in FY21.

The interim and final dividends (excluding the performance fee dividend) came to 199.7 cents, an increase of 8.2% from FY20.

Another area of potential profit growth for the ASX 200 blue chip share comes from Magellan Capital Partners, which is responsible for strategic investments outside of Magellan’s funds management business that meet stringent criteria. This is where the business is looking for high-quality companies with meaningful scale in the sector.

One example is its 40% stake in Barrenjoey for $156 million, a new investment bank, which now has a team of around 250 people. Operating activities have started. Magellan said the partnership with Barclays is proving “very beneficial” for Barrenjoey’s clients and that the business is developing ahead of expectations.

Another example was the $103 million investment in Guzman y Gomez for a 12% stake. Magellan said that GYG had a strong year, exceeding its budgeted earnings by around 50%, despite difficult trading conditions. It achieved its new restaurant opening target for the year and now has 157 corporate-owned and franchised restaurants. GYG made $445 million of total global sales.

Morgans currently rates Magellan as a buy, with a price target of $54.85. The broker thinks that the fund manager can continue to grow its earnings in the coming years. It values Magellan at 14x FY23’s estimated earnings with a projected FY23 partially franked dividend yield of 6.8%.

BHP Group Ltd (ASX: BHP)

The BHP share price has fallen by around 30% since the end of July 2021.

This ASX 200 blue chip share has seen the iron price more than halve over the last few months as China stepped up curbs on steel production in different regions.

In FY21, BHP made US$30.3 billion of underlying earnings before interest and tax (EBIT). Iron ore accounted for US$24.3 billion of the underlying EBIT, so it made up a significant portion of the overall result.

But the mining giant is looking to diversify its operations with other commodities such as copper, nickel and potash. The BHP CEO Mike Henry said:

We continue to actively position our portfolio as well for future returns and growth. We have progressed exploration and development in copper and nickel, commodities which are favourably leveraged to the mega-trends of electrification and decarbonisation. In sanctioning the Jansen Stage 1 project in Canada, we gain access not only to the healthy returns of this project on a stand-alone basis, but to a new front for growth in a future facing commodity in the world’s best potash basin and an attractive investment jurisdiction.

The ASX 200 blue chip share is currently rated as a buy by the brokers at Macquarie Group Ltd (ASX: MQG) with a price target of $56. The analysts point to strong resource prices as a reason to be positive on BHP.

Macquarie’s estimates put the BHP share price at 8x FY23;s estimated earnings with a projected FY23 grossed-up dividend yield of 11%.

The post 2 ASX 200 blue chip shares that might be the best to buy appeared first on The Motley Fool Australia.

More reading

• Iron ore price surges 17% as Evergrande fears ease further
• Bank of America flags more headwinds for ASX 200 iron ore shares
• AMP Capital’s chief economist on Evergrande and ASX 200 resource shares
• Evergrande on investors’ minds and miners in focus. Scott Phillips on Nine’s Late News
• BHP (ASX: BHP) share price lifts as China fears abate…for now

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. 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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The Bank of Queensland Limited (ASX: BOQ) share price has finished trade on Friday, up 1.10% apiece at $9.21. In comparison, the S&P/ASX 200 Index (ASX: XJO) was down 0.37% to 7342.6 points at market close.

The regional bank’s shares have moved sideways since February this year, despite a strong performance in its most recent results.

Below, we take a look at the company’s financial metrics and how its shares have performed since.

What did Bank of Queensland report for the first-half of FY21?

Bank of Queensland delivered its half-year results for the 2021 financial year to investors before market open on 15 August. The Bank of Queensland share price closed the previous day at $8.90.

Across the board, the Bank of Queensland recorded a robust scorecard with growth in several key areas. This included:

• Cash earnings increased 9% to $165 million;
• Statutory net profit after tax soared 66% to $154 million;
• Net interest margin (NIM) lifted 3 basis points to 1.95%;
• Common Equity Tier 1 (CET1) capital ratio jumped 12 basis points to 10.03%; and
• Interim dividend up 54.5% to 17 cents per share.

The strong result was underpinned by above system asset growth, NIM improvement, cost discipline, and a strong capital position.

Bank of Queensland CEO and managing director, George Frazis commented:

In the first half of our 2021 financial year, the BOQ Group has produced another strong performance and is building momentum, demonstrated by an uplift in statutory profit and cash earnings.

…These results reflect the Group’s sharp focus on our strategic priorities and the disciplined operational execution of our transformation plan.

How has the Bank of Queensland share price reacted?

In the following weeks after the first-half report, Bank of Queensland shares hit a 52-week high of $9.27 on 28 April. However, some profit-taking led its shares momentarily lower, until picking up again in August.

It’s worth noting that the company’s share price reached a new 52-week high of $9.73 this month.

The Bank of Queensland share price is up 55% over the last 12 months, while the ASX 200 has gained 25%.

A couple of brokers have weighed in after the company’s share price in July.

Analysts at JPMorgan raised its rating on the Bank of Queensland share price, adding its outlook by 2.1% to $9.80. On the other hand, Credit Suisse also lifted its price target by 15% to a bullish $11.50.

Based on the current share price, this implies an upside of roughly 25% on Credit Suisse’s assessment.

The post How has the Bank of Queensland (ASX:BOQ) share price been performing since reporting results? appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland (ASX:BOQ) share price in focus amid concerns over management churn rate
• Bank of Queensland (ASX:BOQ) share price dips amid new key appointments
• Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?
• Why is the Bank of Queensland (ASX:BOQ) share price underperforming its sector today?
• Why the Bank of Queensland (ASX:BOQ) share price is struggling this week

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 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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If you’re currently building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share to look at is this banking giant. It could be a top option due to its improving performance, positive outlook, strong balance sheet, and proposed acquisition of Citi’s Australian consumer business.

In respect to its improving performance, last month NAB released its third quarter update and revealed unaudited cash earnings of $1.70 billion. This was broadly in line with the quarterly average it achieved during the first half and well ahead of expectations.

Goldman Sachs has been pleased with NAB’s performance and plans. So much so, it has a conviction buy rating and $30.62 price target on its shares.

In addition, Goldman is forecasting a fully franked $1.40 per share dividend in FY 2022. Based on the current NAB share price of $27.35, this will mean a yield of 5.1%.

Scentre Group (ASX: SCG)

Another ASX dividend share that Goldman Sachs rates highly is Scentre. It likes the shopping centre operator due to its strong market position and positive leverage to inflation.

Goldman estimates that 70%+ of Scentre’s base rental income is subject to inflation-linked escalation, which bodes well in the current environment. The broker also highlights that higher inflation aids the profitability of its retailer tenancy base, which benefits from fixed cost leverage.

In light of this, the broker currently has a buy rating and $3.32 price target on the company’s shares. This compares to the latest Scentre share price of $2.90.

Furthermore, based on its current share price, Goldman is forecasting dividend yields of approximately 5% in FY 2021 and 5.7% in FY 2022.

The post Why NAB (AX:NAB) and this ASX dividend share could be buys appeared first on The Motley Fool Australia.

More reading

• Could it be time to consider buying NAB (ASX:NAB) shares?
• How could a stock market correction impact ASX 200 bank shares?
• Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?
• The NAB (ASX:NAB) share price has just had a lousy week, what’s next?
• Why this fund manager sees limited growth potential for ASX 200 banks

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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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here’s what this fund manager has been buying:

GUD Holdings Limited (ASX: GUD)

According to a change of interests of substantial holder notice, Aware Super has been taking advantage of weakness in the GUD share price to top up its position.

The notice reveals that the super fund has picked up just under 1.4 million shares since the beginning of August. This lifted its holding in GUD to a total of ~6.21 million shares, which is the equivalent of a 6.54% stake.

The most recent purchase came on 15 September when the company paid ~$5.69 million for 530,716 shares. This represents an average price of $10.71 per share.

Unfortunately for Aware Super, the GUD share price has continued to tumble since then. On Friday, its shares were trading within sight of its 52-week low at $10.19.

Though, one broker that would be supportive of these purchases is Citi. Earlier this month the broker upgraded GUD’s shares to a buy rating with a $12.30 price target.

Nitro Software Ltd (ASX: NTO)

A notice of initial substantial holder reveals that Copia Investment Partners has become a substantial shareholder of this document productivity company.

According to the notice, the fund manager has built up a holding of 9,973,091 shares, which is the equivalent of a 5% stake. Copia has been buying shares over the last few months but went into overdrive this week. One of its purchases was for 780,399 shares at an average price of $3.51.

The Nitro share price is currently fetching $3.68, which is just short of its 52-week high of $3.78. However, based on this fund manager’s purchases, its team appear confident that new highs will be reached in the near future.

The post Fund managers are buying these ASX shares 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software 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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