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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index ended the day 0.95% lower at 7,511 points.

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

ASX 200 futures pointing lower

The Australian share market is expected to continue its poor run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% lower today. This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.7%, and the Nasdaq sink 0.9%.

BHP reports huge profit growth

The BHP Group Ltd (ASX: BHP) share price will be on watch today following the after market release of its full year results on Tuesday. The Big Australian reported a 69% increase in underlying EBITDA to US$37,379 million, allowing it to declare a record final dividend of US$2.00 per share. This brought its full year dividend to US$3.01 per share, up 151% and ahead of expectations. BHP and Woodside Petroleum Limited (ASX: WPL) also agreed to merge their oil and gas operations. BHP’s UK shares ended the day 3.5% higher.

Oil prices fall

It could be a difficult day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell. According to Bloomberg, the WTI crude oil price is down 0.8% to US$66.76 a barrel and the Brent crude oil price is down 0.5% to US$69.18 a barrel. Weak demand in Asia has been weighing on prices.

CSL full year results

The CSL Limited (ASX: CSL) share price will be on watch today when it releases its full year results. The biotherapeutics company has provided guidance for earnings growth of 3% to 8% in FY 2021. However, this isn’t likely to be the main focus with the result. Investors will be keen to find out how plasma collection headwinds are impacting the company. Goldman recently commented: “We see scope for cautious commentary on FY22, largely predicated around cost, which may manifest in another year of cautious guidance.”

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a subdued day on Wednesday after the gold price edged lower. According to CNBC, the spot gold price is down 0.15% to US$1,787 an ounce. The precious metal was rising on weaker bond yields before giving back these gains.

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

More reading

• CSL (ASX:CSL) share price in focus after outperforming FY21 guidance
• How did the Newcrest (ASX: NCM) share price respond last earnings season?
• Woodside (ASX:WPL) announces new leader
• ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results
• BHP (ASX:BHP) share price on watch after record dividend and Woodside merger deal

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 CSL Ltd. 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 interested in gaining exposure to the small side of the market, then you might want to look at the ASX shares listed below.

Here’s why these small cap ASX shares could be ones to watch:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. Australia’s leading online beauty retailer has been growing strongly in recent years and particularly during FY 2021. For example, it expects to report full year revenue growth of between 43% and 47% this year. And while FY 2022’s growth will inevitably moderate as it cycles strong sales periods during the pandemic, its longer term outlook remains very positive. This is due to its leadership position online, growing customer base, and the structural shift online for beauty sales.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap to watch is Bigtincan. It is a provider of enterprise mobility software that allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. A testament to the quality of its platform is that it has a large number of blue chips as customers. This includes Australia and New Zealand Banking GrpLtd (ASX: ANZ), Cardinal Health, Nike, and Red Bull. Increasing demand has been underpinning strong recurring revenue growth in FY 2021.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap to watch is Volpara. This healthcare technology company uses artificial intelligence to assist with the early detection of breast cancer. Volpara achieves this by allowing users to analyse mammograms and associated patient data. Volpara is currently generating approximately NZ$27.8 million in annual recurring revenues (ARR). However, this is well short of its addressable market, which management estimates is US$750 million in breast cancer screening alone. This gives the company a significant runway for growth over the next decade.

The post 3 small cap ASX shares to put on your watchlist this week appeared first on The Motley Fool Australia.

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• 2 ASX tech shares rated 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. owns shares of and has recommended BIGTINCAN FPO and VOLPARA FPO NZ. 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 BIGTINCAN FPO and VOLPARA FPO NZ. 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 boost your income portfolio with some dividend shares, then the two listed below could be worth considering.

Here’s what you need to know about these ASX 200 dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to consider buying is Coles. Thanks to its position as one of the big two supermarket operators, Coles has been able to continue growing its sales, earnings, and dividends at a solid rate during the pandemic.

Positively, this trend is expected to continue over the long term due to its strong market position, cost cutting, and focus on automation. The latter has seen the company invest heavily in new distribution centres with Ocado. This is expected to boost its supply chain and online business.

Goldman Sachs is positive on the company. It recently put a buy rating and $19.40 price target on its shares and is forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022.

Based on the current Coles share price of $18.31, this implies yields of 3.4% and 3.7%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider is this leading toll road operator. Transurban’s portfolio comprises 17 roads in Australia and four in North America. In addition, the company has a significant project pipeline across its networks.

While lockdowns and restrictions across the country are inevitably having an impact on traffic volumes, as per previous lockdowns, traffic is expected to bounce back once trading conditions return to normal. And with Australia’s vaccine rollout finally gathering pace, these sorts of disruptions may be a thing of the past in 2022. This could make Transurban a top recovery investment option for investors.

One broker that sees Transurban as a top option is Ord Minnett. Last week it retained its buy rating but trimmed its price target slightly to $15.50. Its analysts are expecting a big dividend increase next year. They are forecasting dividends of 36.5 cents per share in FY 2021 and then 48.4 cents per share in FY 2022.

Based on the current Transurban share price of $13.53, this will mean yields of 2.7% and 3.6%, respectively.

The post 2 blue chip ASX 200 dividend shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• How did the Coles (ASX:COL) share price respond last earnings season?
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
• 2 blue chip ASX 200 dividend shares named as buys
• Why the Transurban (ASX:TCL) share price is edging higher 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 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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Another jam-packed day of reporting on the ASX has come to pass. Results from some of the biggest companies on the ASX were met with mixed reactions.

We’ll quickly unpack today’s results and then wrap it back up for tomorrow:

Those that delivered today

Magellan Financial Group Ltd (ASX: MFG)

Shares in the fund manager sank a drastic 10.15% to $46.20. Investors put downwards pressure on the company’s shares after Magellan revealed a 33% fall in profits in its FY21 result.

The takeaway points:

• Average funds under management (FUM) increased 9% to $103.7 billion
• Profit before tax and performance fees up 10% to $526.6 million
• Net profit after tax down 33% to $265.2 million
• Adjusted net profit after tax down 6% to $412.7 million
• Total partially franked dividends of 211.2 cents per share, down 2% year on year

Breville Group Ltd (ASX: BRG)

The Breville share price suffered a similar fate today with the kitchen appliance company’s shares losing 8.97% after reporting to the ASX. Despite top and bottom-line growth in its FY21 result, the market appeared to hone in on supply chain concerns.

The takeaway points:

• Record group sales resulting in a 24.7% increase in revenue to $1,187.7 million.
• Gross profit up 29% to $413.7 million.
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 36% to $163.3 million.
• Net profit after tax up 42.3% to $91 million.
• Dividends per share down 35.4% to 26.5 cents per share (FY20: 41.0 cents per share).

Domain Holdings Australia Ltd (ASX: DHG)

Finishing on a positive note, shares in Domain jumped 4.71% to $4.89 after reporting its earnings on the ASX. Investor sentiment was positive after the company revealed substantial earnings growth in its FY21 results.

The takeaway points:

• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $102 million prior to the impact of an accounting change, up 20.8% year-on-year
• Net profit of $37.9 million, up 66% year-on-year
• 31% like-for-like growth in core digital EBTIDA
• Record unique digital audience of more than 9 million

ASX shares reporting tomorrow

Tomorrow is set to be another busy one on the ASX for reporting. Some of the big-name companies set to release their financials include CSL Limited (ASX: CSL), Woodside Petroleum Limited (ASX: WPL), Pro Medicus Limited (ASX: PME), Domino’s Pizza Enterprises Ltd. (ASX: DMP), Nearmap Ltd (ASX: NEA), and Coles Group Ltd (ASX: COL).

The post The ASX reporting wrap-up: Magellan, Breville, Domain appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results
• The ASX reporting wrap-up: Magellan, Breville, Domain
• Here are the top 10 ASX 200 shares today
• Why Breville, CBA, Magellan, & Sezzle shares are tumbling lower today
• Why Domain, Money3, ResMed, & Steadfast shares are charging higher

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd., Nearmap Ltd., and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET, Nearmap Ltd., and Pro Medicus Ltd. 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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The S&P/ASX 200 Index (ASX: XJO) dropped by almost 1% today to 7,511 points as reporting season continues.

Here are some of the highlights from the ASX:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price was one of the worst performers in the ASX 200. It fell by around 10% after releasing its FY21 result.

Magellan reported that management and service fees increased by 7% to $635.4 million. Profit before tax and performance fees of the funds management business increased by 10% to $526.6 million.

However, adjusted net profit after tax and before associates grew 4% to $454.4 million. Adjusted net profit after tax fell 6%. Statutory profit after tax, which includes transaction costs related to strategic initiatives, fell 33% to $265.2 million.

Total dividends were reduced by 2% to 211.2 cents per share. This was weighed down by a large reduction in the performance fee dividend, but the ordinary dividend was increased.

During the year, the business made three investments in FinClear, Guzman y Gomez and Barrenjoey Capital Partners.

Magellan CEO Brett Cairns said:

The 2021 financial year has been a very busy and productive one for Magellan with the completion of a number of important initiatives that we believe will add meaningfully to Magellan’s value, diversity and resilience over time.

Further, we are delighted with Magellan Capital Partners’ three new strategic investments. FinClear, Guzman y Gomez and Barrenjoey Capital Partners have all performed strongly over the year and we are excited by their future prospects.

Breville Group Ltd (ASX: BRG)

Breville was another ASX 200 share to suffer a major selloff today after releasing its FY21 result. The Breville share price fell 9%.

The appliance maker said that revenue grew by 24.7% to $1.19 billion and net profit after tax rose 42.3% to $91 million. However, underlying net profit (which excludes ‘abnormal items’) rose by 25.1% to $91 million.

Breville explained that working from home conditions and successful geographical expansion (France, Portugal, Italy and Mexico) offset the impact of intermittent supply challenges.

However, the board decided to decrease the dividend by 35.4% to 26.5 cents. Breville is holding onto more cash to fund its growth opportunities.

The ASX 200 share is expecting FY22 to be “transitional”. There are challenges relating to supplier costs, parts challenges, logistics delays and costs increases.

It noted that its FY22 financials will be comparing against a COVID-driven spike in FY21. Breville said consumers have pent-up savings, and economies are growing as they open, but consumers will begin spending on services.

Domain Holdings Australia Ltd (ASX: DHG)

The best performer in the ASX 200 today was Domain. The property portal business released its FY21 result today.

Domain reported that its revenue grew by 10.7% to $289.6 million, whilst expenses increased 5.9% to $189 million. This led to earnings before interest and tax (EBIT) rising 44% to $64.5 million and net profit going up 66.4% to $37.9 million.

A dividend of 4 cents per share was declared.

In regards to FY22, Domain said that national listings are up slightly on last year. Lockdowns are impacting listings, particularly in Sydney.

The company is confident in the resilience of the market. It pointed to consistent patterns of sharp rebounds when restrictions eased.

The post ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The ASX reporting wrap-up: Magellan, Breville, Domain
• The ASX reporting wrap-up: Magellan, Breville, Domain
• Here are the 3 heavily traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares today

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 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 many competing theories about stock investing.

You can target growth shares, or you can concentrate on value stocks. Perhaps you can try to ‘buy the dip’, or you can practise dollar-cost averaging. You can be contrarian, or ride the momentum.

They are all successful at certain times and underperform during other periods. If there was one clear winning strategy, we’d all be doing it.

But among this dizzying array of options, there seem to be 2 base characteristics that the most successful portfolios have in common, according to Montaka Global Investments portfolio manager Chris Demasi.

“In 2016, Martijn Cremers and Ankur Pareek published a ground-breaking research report,” he said on the company blog.

“It showed that only the most distinct and most patient funds go on to meaningfully outperform the stock market over very long periods.”

So what exactly do the terms ‘distinct’ and ‘patient’ mean?

Avoid becoming a ‘closet indexer’

The research suggested that the best-performing portfolios have ‘high active share’.

The term ‘active share’ refers to the part of the stock portfolio that is invested differently from market sentiment at the time of purchase.

“Highly concentrated stock pickers, for example, have high active share of 90% or more typically,” Demasi said.

“On the other hand, ‘closet indexers’ with diversified and undifferentiated portfolios that look like the market (often despite claims otherwise) have low active share of 60% or less.”

After all, how are you going to outperform if you’re doing the same thing as the rest?

Demasi said the typical stock picker that has an active share above 90% outperformed the market by almost 1% each year.

“This seemingly small yearly benefit becomes extraordinarily large when compounded over more than a quarter of a century, when the market appreciated at 9.4% per annum on average,” he said.

“A portfolio of the highest active share funds would have beaten the market by more than 180%. A hypothetical investor with initial capital of $1 million would be almost $2 million wealthier.”

The power of patience when investing

The most successful portfolios also display Buddha-like patience for each stock.

Demasi explained it in terms of ‘fund duration’, which is a term describing the average length of time each stock is held over a 5-year period.

“Managers with long fund duration hold stocks at least 2 years, while short fund duration managers usually sell stocks 8 months after purchasing them.”

Those who went long showed obvious outperformance.

“The long-term investors that stick to their convictions longer than 2 years outperform, and by almost 2% per annum. Less patient managers underperformed regardless of how active and concentrated they were — and, in fact, the more they traded the worse they performed,” said Demasi.

“Basically, patience paid off in spades.”

That sample investor who earned an extra $2 million from a high active portfolio would be even richer if she exercised equanimity.

“By allocating the initial $1 million of capital to a portfolio of those most concentrated active managers that were also the most patient with their holdings, the earlier hypothetical investor would have outperformed the market by an additional 380% and be another $3.8 million richer.”

The post 2 things the best share portfolios have in common appeared first on The Motley Fool Australia.

More reading

• 7 traps to avoid right now when buying ASX shares
• How did the Nearmap (ASX:NEA) share price respond last earnings season?
• How did the Tabcorp (ASX:TAH) share price respond last earnings season?
• Westpac (ASX:WBC) share price on watch after Q3 update
• 2 quality ASX growth shares rated as buys

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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If you’re looking for some growth shares to add to your portfolio this week, then the two listed below might be worth considering.

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

Breville Group Ltd (ASX: BRG)

The ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Breville’s products have been popular with consumers for decades. This has been driven by its continuous and growing investment in research and development (R&D), which has been kept its production line full of innovative new products.

In addition to this, the company has been growing its footprint globally, increasing its addressable market and driving strong sales and profit growth.

For example, during the first half, Breville reported a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million. Later today, the company is expected to report a similarly strong full year result.

Morgan Stanley appears confident this will be the case. Earlier this month the broker retained its overweight rating and $35.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

Temple & Webster has been growing at a rapid rate in recent years but particularly during the pandemic. This was driven by the accelerating shift to online shopping. This led to Temple & Webster reporting an 85% increase in revenue to $326.3 million and a 62% year on year increase in customer numbers to 778,000 in FY 2021.

The good news is that online furniture shopping is still in its infancy in comparison to both other areas of the retail market and Western markets. This bodes well for the future, especially given Temple & Webster’s leadership position and management’s plan to invest heavily to take advantage of the shift and cement its strong market position.

Canaccord Genuity is a fan of the company. It currently has a buy rating and $14.00 price target on the company’s shares.

The post 2 quality ASX growth shares rated as buys appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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S&P/ASX 200 Index (ASX: XJO) shares could be a good hunting ground for investors to look for opportunities for growth.

Businesses in the ASX 200 have already reached a certain size, but some of them may still have plenty of growth potential to come.

Here are two that could still be long-term opportunities:

Goodman Group (ASX: GMG)

Goodman is one of the largest industrial property businesses in the world with a market capitalisation of $42 billion according to the ASX.

The business recently released its FY21 result to the market, which showed operating profit increased by 15% to $1.22 billion. Operating earnings per security (EPS) increased 14.1% to 65.6 cents, materially beating its guidance of 9% growth.

Overall, the business achieved a statutory profit of $2.3 billion, which included the benefits of property valuation increases. There were $5.8 billion of revaluation gains across the group and partnership assets combined.

Total assets under management (AUM) grew by 12% to $57.9 billion. The rental portfolio had a high level of performance. The occupancy rate was 98.1% and the like for like net property income growth was 3.2%.

There is a significant amount of work in progress (WIP) for the ASX 200 share, up 63% on FY20 to $10.6 billion across 73 projects with a yield on cost of 6.7%.

Goodman said it’s well positioned to maintain WIP of around $10 billion throughout FY22. Customer demand is translating into high occupancy and rental growth. It’s expecting AUM to grow to more than $65 billion.

FY22 operating EPS is expected to grow another 10% in FY22.

The broker Macquarie Group Ltd (ASX: MQG) currently rates Goodman as a buy with a price target of $24.84. It thinks Goodman’s guidance is conservative and expects stronger growth in FY22.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is another ASX 200 share that is seeing an elevated level of demand for its services in light of the impacts of COVID-19.

This healthcare business is one of the companies involved in the fight against COVID-19 because it is doing millions of tests for people in the countries that it operates. Australia, North American and Europe are three large markets.

One of the brokers that likes Sonic Healthcare at the moment is Credit Suisse which has a price target on the business of $43.50. The broker points out that the Delta variant is leading to a large number of cases and tests in several of Sonic’s markets.

Due to this high level of testing, Sonic is expected to make big profit which will allow it to improve its balance sheet and pay a higher dividend. The ASX 200 share has already revealed an acquisition (Canberra Medical Imaging) as a way to boost earnings from this short-term earnings boost.

In the FY21 half-year result, Sonic grew revenue by 33% to $4.4 billion and net profit rose 166% to $678 million.

According to Credit Suisse, the Sonic Healthcare share price is valued at 22x FY22’s estimated earnings.

The post 2 ASX 200 shares that could be buys for growth appeared first on The Motley Fool Australia.

More reading

• 7 traps to avoid right now when buying ASX shares
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises
• Here are 3 ASX 200 share investors can’t leave alone today
• Here are the top 10 ASX shares today

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 Australia has recommended Sonic Healthcare 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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Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.

Here’s why these high yield ASX dividend shares could be in the buy zone:

Scentre Group (ASX: SCG)

The first ASX dividend share to look at is Scentre. It owns and operates the pre-eminent living centre portfolio in the ANZ market with retail real estate assets under management valued at $50 billion and shopping centre ownership interests valued at $34.1 billion. This comprises 42 Westfield living centres.

Although times have been hard for Scentre due to COVID-19, Goldman Sachs remains positive on the company. Particularly given that Australian inflation expectations are currently at their highest level since 2015. Goldman sees this as a big positive for Scentre due to it being far more positively leveraged to inflation than any other Australian real estate investment trust under coverage. Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.

Its analysts have a buy rating and $3.29 price target on the company’s shares. Based on the latest Scentre share price of $2.55, Goldman is forecasting generous dividend yields of 5%+ over the next couple of years.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share to look at is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

Suncorp was a positive performer in FY 2021 and recently released its full year results. The company delivered a 42.1% increase in cash earnings to $1,064 million for the 12 months. This allowed the insurance giant to declare a special dividend and announce a $250 million on-market share buyback.

Credit Suisse was pleased with its result and upgraded the company’s shares to an outperform rating with a $14.00 price target. The broker believes Suncorp is well-placed to continue growing its earnings and dividends in the near term.

In respect to dividends, Credit Suisse is forecasting fully franked dividends of 73 cents per share in FY 2022 and then 74 cents in FY 2023. Based on the current Suncorp share price of $12.37, this will mean 5.9% and 6% yields, respectively.

The post 2 high yield ASX dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

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

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a disappointing note. The benchmark index finished the day 0.6% lower at 7,582.5 points.

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

ASX 200 expected to rise

It looks set to be a better day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. This follows a reasonably positive start to the week on Wall Street, which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.25%, but the Nasdaq drop 0.2% higher.

BHP results

The BHP Group Ltd (ASX: BHP) share price will be on watch today when it releases its full year results. According to a note out of Goldman Sachs, its analysts expect the mining giant to report underlying EBITDA of US$37.2 million for FY 2021. This is expected to underpin a US$2.89 per share fully franked dividend.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be in the red today after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.5% to US$67.42 a barrel and the Brent crude oil price has fallen 1.3% to US$69.65 a barrel. A faltering demand outlook in China is weighing on prices. Woodside is also due to release its results today.

Gold price rises

It could be a decent day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price pushed higher. According to CNBC, the spot gold price is up 0.6% to US$1,789 an ounce. Easing bond yields in the United States supported the price of the precious metal.

Breville results

Breville Group Ltd (ASX: BRG) shares could be on the move today when it hands in its full year results. The appliance manufacturer has been a strong performer in FY 2021 and is guiding to earnings before interest and tax (EBIT) of approximately $136 million for the year. This compares to normalised EBIT of $113.1 million in FY 2020.

The post 5 things to watch on the ASX 200 on Tuesday 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 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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