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The AMP Ltd (ASX: AMP) share price will be in focus on Friday morning after the Australian Securities and Investments Commission revealed it has started legal action against the finance giant.

The corporate regulator announced that 6 AMP businesses are accused of charging advice fees to 1,540 clients even though it knew they were no longer able to access such advice.

The customers formerly had employer-sponsored superannuation with AMP but had already departed those accounts when the fees were charged.

As well as the fees themselves, ASIC is alleging AMP failed to have a system in place that detected such erroneous charges.

The regulator also accuses AMP of breaching its Australian financial services licence obligations to act “efficiently, honestly and fairly”.

ASIC, through a civil case in the Federal Court, is seeking declarations, penalties and adverse publicity orders.

The AMP share price closed Thursday at $1.06. The stock has dropped more than 80% in just over 3 years.

Customers have been paid out, says AMP

AMP acknowledged the case to the ASX on Friday morning, saying it became aware of the issue in 2018.

“AMP took action to rectify the issue, self-reported it to ASIC, and commenced a remediation process,” the statement read.

“The remediation was completed in November 2019, with approximately 2,500 customers being remediated a total sum of approximately $900,000 covering fees charged and lost earnings.”

The 6 AMP businesses facing the allegations are:

• AMP Superannuation Limited
• AMP Life Limited (which is now owned by Resolution Life NZ)
• AMP Financial Planning Proprietary Limited
• AMP Services Limited
• Charter Financial Planning Limited
• Hillross Financial Services Limited

The Federal Court is yet to set a date for a case management hearing.

The latest case against AMP follows ASIC’s legal action in May that accused the financial services provider of charging life insurance premiums and advice fees to more than 2,000 deceased clients.

That issue is due for a further case management hearing on 12 October.

The post AMP (ASX:AMP) share price on watch as ASIC starts legal action appeared first on The Motley Fool Australia.

More reading

• Own AMP shares? Here’s what to look for during reporting season
• The AMP share price is down 80% over 5 years. But have the dividends paid off?
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• How does the dividend for AMP (ASX:AMP) shares compare to the financial services sector?
• Why the AMP (ASX:AMP) share price will be one to watch today

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla Inc (NASDAQ: TSLA), the electric car kingpin, soared 5% through 11:30 am EDT Thursday, bouncing back from a post-earnings sell-off in the share price.

I see a couple of reasons why that might be happening.

So what

Beginning with the obvious (and least interesting) reason: This morning, StreetInsider.com reports that analysts at Germany’s DZ Bank have upgraded Tesla shares from sell to buy, and more than doubled their price target on the stock, to $750 a share.

That’s a pretty impressive number — about 11% higher than where Tesla shares trade today. But there are few details available on why DZ upgraded. Moreover, DZ Bank isn’t quite a household name here in the U.S., so I’m not sure investors would be inclined to give this upgrade much weight.

More interesting than DZ’s upgrade are some comments made by Morgan Stanley analyst Adam Jonas this morning. In the course of reiterating his overweight rating and $900 price target on Tesla shares (that’s $150 more than DZ predicted), Jonas pointed to Tesla’s just-reported 21% profit margin for adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), and termed it “too high.”

Now what

In Jonas’ view, Tesla is making too much money selling cars — but that’s a nice problem to have, because it means Tesla now has the option of lowering the prices of its cars to “expand the availability of lower priced Tesla vehicles to as many people as possible” — potentially even bringing to market a $20,000 electric vehicle by 2030.

Needless to say, in a market where EVs regularly sell for $40,000, $50,000 — or even $100,000 and beyond — a move such as Jonas is describing would be a “very big deal” for Tesla, and for the automotive industry as a whole. At a time when rival EV manufacturers are just to emerge and eat into Tesla’s market share, it could enable Tesla to undercut essentially all of its competitors on price, and grow to control even more market share than Tesla already does.

Ultimately, the fact that Tesla is “too profitable” today could result in the company becoming even more profitable tomorrow.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Tesla share price jumped 5% on Thursday appeared first on The Motley Fool Australia.

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Rich Smith 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 Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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All eyes will be on the National Australia Bank Ltd (ASX: NAB) share price this morning.

This follows the announcement of a major capital return by the banking giant.

Why is the NAB share price on watch?

This morning NAB announced that it intends to buy back up to $2.5 billion of its ordinary shares on-market. The bank advised that this is part of its plan to progressively manage its Common Equity Tier 1 (CET1) ratio towards its target range of 10.75% to 11.25%.

According to the release, subject to market conditions, NAB expects to commence the buy-back in mid to late August.

NAB’s Group Chief Executive Officer, Ross McEwan, commented: “Through the pandemic, NAB has continued to build its financial strength while providing significant support to our customers and colleagues.”

“Our support for customers and colleagues continues through ongoing lockdowns and as the COVID19 situation evolves. At the same time, NAB’s strong financial performance, combined with the divestment of MLC Wealth, has created an opportunity for NAB to reduce our surplus capital while retaining a strong balance sheet during these uncertain times,” he added.

Why buy back shares?

Mr McEwan revealed that NAB believes the buy-back is the most appropriate way to return funds to shareholders.

He explained: “Our target CET1 range reflects a balance between retaining a strong balance sheet through the cycle, supporting growth and recognising the importance of capital discipline to improve shareholder returns. We consider the on-market buy-back to be the most appropriate mechanism to achieve our previously stated bias towards reducing share count, which will help drive sustainable ROE benefits.”

More buybacks to come?

The good news for shareholders and the NAB share price, is that this may not be the last buy-back.

The bank notes that it continues to operate well above APRA’s Unquestionably Strong benchmark of 10.50%. Its CET1 capital ratio stood at 12.37% at Level 2 and 12.40% at Level 1 as of 31 March 2021.

This $2.5 billion on-market buy-back will reduce the CET1 capital ratio at Level 2 by around 60 basis points. However, after accounting for the buy-back, the sale of MLC Wealth to IOOF Limited (ASX: IFL), and other previously announced items, NAB’s pro forma March 2021 Level 2 CET1 ratio is 12.15%.

This is well above the high end of its target range of 10.75% to 11.25%, giving it at least 90 basis points of slack. This works out to be ~$3.75 billion of surplus capital that could potentially be returned to investors down the line, by my calculations.

Though, NAB has warned that any future capital returns will be dependent upon market conditions and its capital outlook.

The NAB share price is up 42% over the last 12 months.

The post NAB (ASX:NAB) share price on watch after announcing $2.5bn buy-back appeared first on The Motley Fool Australia.

More reading

• Is the NAB (ASX:NAB) share price good value ahead of earnings season?
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• Meet Spriggy, NAB Ventures’ latest investment outside the ASX
• Own NAB (ASX:NAB) shares? Here’s what to look for during reporting season

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 Telstra Corporation Ltd (ASX: TLS) share price is on watch after some NBN news.

NBN credits

According to reporting by the Australian Financial Review, the NBN Co is going to give retail internet providers like Telstra, Optus and TPG Telecom Ltd (ASX: TPG) a combined $5.2 million of credit to offset excess capacity fees with a surge of data demand by households during these latest lockdowns.

It was also reported that more credit could be given in the next few weeks and months ahead if demand continues to be much higher than expected.  

The AFR quoted NBN executive Ken Wallis, who said:

The credit payment…is designed to reduce retailers’ additional wholesale data coverage costs brought on by the incremental increase in usage during the peak evening entertainment hours and to help to ensure they do not fall short of their customers’ data demands.

However, executives from Telstra, TPG, Optus and Vocus were all displeased by what NBN had decided. The telcos said it wasn’t enough.

The Aussie Broadband Ltd (ASX: ABB) managing director Philip Britt was less critical. The AFR quoted him saying:

Given that NSW is going to be in lockdown for at least another four weeks, we welcome NBN Co’s continuing relief for as long as the lockdowns continue. We will continue to monitor usage closely, and will advocate for more relief if required.

How is Telstra’s share price and earnings going?

Telstra reported its half-year result on 11 February 2021. It has risen almost 20% since reporting.

When Telstra reported, it said that after a decade of disruption following the creation of the NBN, and with its rollout now declared complete, it can see a path to underlying growth ahead.

The company’s half-year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 14.2% to $3.3 billion. Within that, there was an in-year NBN headwind of $370 million and an estimated $170 million impact from COVID-19.

On a reported basis, total income fell 10.4% to $12 billion and net profit after tax (NPAT)

The company continues to add subscribers, but its margins have been falling because of the NBN and rising competition.

Telstra is expecting an in-year NBN headwind of approximately $700 million in FY21.

The telco has been working on reducing its cost base, improving efficiencies and selling assets to maximise its value for shareholders.

Is the Telstra share price good value?

One of the latest brokers to have their say on Telstra is Ord Minnett. The business thinks that Telstra is a buy with a price target of $4.25. The cost savings are an important part of the equation for the broker.

The broker thinks that Telstra is going to pay a fully franked dividend of $0.16 per share in FY21 and FY22, which translates to a grossed-up dividend yield of 6%.

The post Telstra (ASX:TLS) share price on watch after NBN news appeared first on The Motley Fool Australia.

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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 Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband 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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Reporting season is almost here and investors will be keeping a close eye on news from Qantas Airways Limited (ASX: QAN), as well as its embattled share price.  

Right now, the Qantas share price is $4.62.

It’s been a tough 18 months for Qantas. Its soon-to-be-released annual report will describe a year in which it’s battled COVID-19 at every turn.

The Qantas share price started the 2021 financial year at $3.78 and finished it at $4.66. But the best testament to its performance will come in August.

Qantas plans to release its preliminary final results on 26 August. Here’s what you should look for.

What to look for in Qantas’ results

Traffic stats

On May 20, Qantas predicted it would see its domestic capacity sitting at 95% by the fourth quarter of the 2021 financial year.

Although, according to The ABC, last week Qantas told its staff that domestic services were at 90% capacity before Sydney went into lockdown. That figure had since dropped to 60%.

Over the 6 months ended 30 July 2021, parts of Western Australia, Victoria, the Northern Territory, and Queensland were all temporarily locked down for between 3 and 14 days at various times.   

Sydney’s current lockdown is by far the most extensive. However, it didn’t begin until 25 June and therefore may not severely impact Qantas’ results.

If losses have increased or decreased

Additionally, the Qantas share price could be impacted if the airline reports more losses.

Qantas has been among the hardest-hit shares throughout the COVID-19 pandemic.

In its half year results, the airline reported an underlying loss before tax of $1.03 billion and a $6.9 billion revenue impact.

However, its domestic services were reporting positive cash flows.

That may or may not be the case for the second half of the 2021 financial year as lockdowns and border restrictions were regularly in place throughout the period.

The airline released guidance in May, stating Qantas expects a post positive statutory free cash flow within its full year results. It is also expected to announce a statutory loss before tax of $2 billion.

However, the guidance assumed no further lockdowns or border restrictions would be instated.

Additionally, the Transport Workers’ Union claims the airline has received $2 billion in government support which, if true, could negate some losses.

Although, the airline denied receiving the funding, claiming the majority of the government support it received came from JobKeeper.

Debt levels

At the end of the financial year’s first half, Qantas had $6.05 billion worth of debt to its name.

The airline previously said its debt levels had peaked in February and would begin recovering in the fourth quarter.

Eyes will be peeled to see if Qantas’ debt forecast has come true. Particularly since rumours were swirling that Qantas is looking to sell land to repay debt only yesterday.

Qantas share price snapshot

2021 hasn’t been good for the Qantas share price.

It is currently 5.9% less than it was at the beginning of the year. However, it has gained 37.5% since this time last year.

The post Own Qantas (ASX:QAN) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

More reading

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• Is this why the Qantas (ASX:QAN) share price is struggling today?
• 3 long-term trends ASX share investors can buy into
• What is the outlook for the Qantas (ASX:QAN) share price?

Motley Fool contributor Brooke Cooper 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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AMP Ltd (ASX: AMP) shares have had a tough year. The Aussie wealth manager’s value has slumped 31.7% in 2021 to a market capitalisation of $3.5 billion. With the August reporting season kicking off next week, here are a few things to watch as an AMP investor.

What to watch in August if you own AMP shares

AMP is currently undergoing a significant period of change. The 2018 Financial Services Royal Commission, a number of scandals, and significant structural change have meant there’s a lot happening for the Aussie financial services group right now.

One of the first things investors will be watching is AMP’s own half-year results update on 12 August. Earnings have been mixed in recent years and this August could provide some insight into AMP’s future strategy. AMP Capital has long been AMP’s most consistently profitable entity and a mooted private markets business spin-off means investors will be keeping an eye on performance.

AMP shares are under the pump right now, but could a change of leader mean a change in fortunes? Former Australia and New Zealand Banking Group Ltd (ASX: ANZ) deputy CEO Alexis George is set to join AMP as CEO on Monday. George will take over the reins with a big task ahead to turn around AMP’s profitability and share price.

Shareholders will also likely be watching AMP’s FY2022 outlook for any insightful commentary. There has been a flurry of rumoured and actual portfolio sales in recent months. That means with so much happening at AMP and its re-shaping of the business for the future, the August reporting season is worth watching.

Aside from AMP’s own results, it might also pay to keep an eye on what others in the market are doing. Investors will likely be watching out for other Aussie wealth managers like IOOF Holdings Limited (ASX: IFL) and even Macquarie Group Ltd (ASX: MQG). Following what AMP’s peers and rivals are doing can provide useful industry context in evaluating how much AMP shares are worth.

Foolish takeaway

AMP shares remain under the pump heading into the August reporting season. These are just a few things shareholders might be watching as they hope the new CEO can right the ship in 2021 and beyond.

The post Own AMP shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

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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. 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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A2 Milk Company Ltd (ASX: A2M) shares will be on watch next month when it releases one of the most highly anticipated results of reporting season.

Ahead of the release, I thought I would look to see what the market is expecting from the embattled fresh milk and infant formula company.

What is the market expecting?

The last 12 months have been very tough for a2 Milk, leading to countless earnings guidance downgrades. In light of this, expectations are very low for its result in August and this has been reflected in the performance of a2 Milk shares over the period. Since this time last year, the a2 Milk share price has lost a whopping 70% of its value.

According to a note out of Goldman Sachs, its analysts are forecasting revenue of NZ$1,221.1 million in FY 2021. This represents a 29.5% year on year decline and is at the low end of the company’s last revised guidance of NZ$1.2 billion to NZ$1.25 billion.

Goldman explained: “We forecast the key decline to come from the ANZ division driven by continued impact on the Daigou channel with sales at NZ$573.1mn (-40.7% yoy). We expect direct sales into China/other Asia to also be down -18.2% to NZ$572.0mn.”

In respect to earnings, Goldman expects the company to achieve its revised EBITDA guidance of NZ$132million to NZ$150 million. It is forecasting EBITDA of NZ$140.7 million, down 74.5% year on year.

Finally, on the bottom line, the broker expects a2 Milk to reported a 74.7% decline in underlying net profit after tax to NZ$98.1 million.

Will it pay a dividend?

While the company has suggested that it could consider capital returns, Goldman Sachs isn’t expecting this to be the case in FY 2021.

It commented: “While we forecast operating cash flow to be down -87.5% to NZ$53.5mn, we expect capital expenditure for FY21 to increase significantly to NZ$50mn vs. NZ$5.8mn in the prior year. We do not expect the group to pay final dividends and expect it to maintain a net cash position of NZ$806mn at the end of June 2021.”

Are a2 Milk shares in the buy zone?

The note reveals that Goldman Sachs continues to sit on the fence with a2 Milk. It has retained its neutral rating and $6.96 price target on a2 Milk shares. Based on the current a2 Milk share price, this implies potential upside of 13% over the next 12 months.

As attractive as that potential return may be, Goldman doesn’t appear to believe the risk/reward on offer with a2 Milk shares is compelling enough to upgrade its shares to a buy rating.

The post Own A2 Milk (ASX:A2M) shares? Here is its FY 2021 result preview 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 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 Fortescue Metals Group Limited (ASX: FMG) share price is going to be under scrutiny between now and its FY21 report release with investors wondering how large the final dividend is going to be.

Fortescue released its FY21 fourth quarter update to the market yesterday.

Fourth quarter update

Fortescue said that for the three months to 30 June 2021, it saw record iron ore shipments of 49.3 mt. Fortescue also shipped 182.2 mt for FY21. The annual shipment total beat the company’s guidance of 182 mt.

The iron ore miner saw record revenue of US$168 per dry metric tonne (dmt) for the quarter and US$135 per dmt for FY21.

Its C1 cost for the fourth quarter was US$15.23 per wet metric tonne (wmt). That was up 2% on the previous quarter. The C1 cost for FY21 was US$13.93 per wmt. That was in line with guidance.

Fortescue said that strong free cashflow generation contributed to the business ending with net cash of US$2.7 billion at 30 June 2021. This compares to net debt of US$1 billion at 31 March 2021.

The Fortescue Metals share price rose around 2% yesterday.

Fortescue Future Industries (FFI) also got a sizeable mention. FFI is the division that’s looking to looking to take a leading role in green energy and green products to produce green electricity, green hydrogen, green ammonia and other green industrial products.

FFI said its vision is to make renewable green hydrogen the most globally traded seaborne energy commodity in the world. It has made progress in a number of areas. For example, it said it has achieved successful combustion of ammonia in locomotive fuel, with a pathway to achieve completely renewable green fuel.

Dividend expectations

There was no specific mention about the company’s dividend in the quarterly update.

However, Fortescue has previously said that it’s going to pay out around 80% of its net profit to shareholders, whilst investing 10% of profit into FFI and another 10% in other areas of the business for growth. Fortescue did mention in the update that it achieved “strong free cashflow”.

Other businesses in the iron ore world are seeing strong profits and rewarding shareholders with big dividends.

Rio Tinto Limited (ASX: RIO) recently announced its half-year result which showed operating cashflow growth of 143%, underlying earnings growth of 156%, ordinary dividend growth of 143% to US$3.76 per share and the Rio board declared a special dividend of US$1.85 per share.

According to numbers on Commsec, Fortescue is expected to pay a dividend of $3.66 per share in FY21. That translates to a grossed-up dividend yield of almost 20% at the current Fortescue Metals share price. Commsec numbers then suggest an annual dividend of $3.49 per share in FY22 – that would be a grossed-up dividend yield of almost 19%.

FY22 guidance

Looking at the next 12 months, Fortescue said that iron ore shipments are expected to be between 180mt to 185mt. The mid-point of that guidance suggests a slight increase on FY21.

The C1 cost is expected to be between US$15 per wmt to US$15.50 per wmt. That compares to a FY21 C1 cost of US$13.93.

Capital expenditure, excluding FFI, is expected to be between US$2.8 billion to US$3.2 billion. That includes US$1.1 billion on sustaining capital, $200 million on hub development, at least US$250 million on operational development, $180 million on exploration and studies and between US$1.1 billion to $1.4 billion on the major projects of Iron Bridge and PEC.

Fortescue Metals CEO Elizabeth Gaines said about FY22:

Building on a second consecutive year of record performance, our guidance for FY22 reflects our ongoing commitment to optimising returns from integrated operations and marketing strategy, with shipments in the range of 180 to 185 million tonnes. Together with our focus on investing in growth through the Iron Bridge Magnetite project and Fortescue Future Industries, we will continue to deliver strong results to ensure all our stakeholders benefit from Fortescue’s success.

The post Fortescue (ASX:FMG) share price under spotlight with BIG FY21 dividend forecast appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. 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’s been much talk this week in the UK about a potential new cryptocurrency backed by the central bank, dubbed ‘Britcoin’.

Other jurisdictions like China, the US, European Union and Japan have also thought about the concept, but no country has yet taken the plunge.

According to DeVere Group chief executive Nigel Green, governments are anxious about the emergence of decentralised digital currencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

“Revealing just how worried they are about the ongoing epic rise and influence of Bitcoin and other cryptocurrencies, the Bank of England is reportedly set to establish its own digital currency — which they have previously routinely dismissed,” he said.

“If the Bank and government officials believe Britcoin will supersede Bitcoin, they are mistaken. In fact, it will have the opposite effect.”

Green cited 3 big reasons why the birth of such a ‘national digital currency’ would actually drive up the price of Bitcoin.

Validating the existence of cryptocurrencies

Green reckons a rival central bank cryptocurrency would ironically act as a massive endorsement for the existing players.

“In what will be a masterclass in the law of unintended consequences, by jumping on the bandwagon, central banks are validating the concept of Bitcoin and its inherent values of being digital, global, borderless, quicker and more cost-effective than traditional money.”

This newfound “legitimacy” would spur further investment and innovation in the technology, he added.

“The crypto ecosystem will become even more robust, and the pace of mass adoption will be accelerated.”

Central control defeats the purpose of crypto

A digital currency controlled by a sovereign central bank defeats the whole point of “borderless” transactions, according to Green.

“[Britcoin] will still be controlled and manipulated by the Bank of England, meaning they can adjust supply and therefore its value. With Bitcoin, there is no single authority and a progressively limited supply,” he said.

“Why would businesses, such as Amazon for example, in the longer-term favour a currency that is digital but not borderless in the same way as cryptocurrencies are?”

Gen Y and Z’s pathological distrust of traditional banking

Younger “digital-native” people do not trust old school financial institutions, said Green.

“They’ve been influenced by the enormous surge in tech as they came into adulthood, which came around the same time as the global financial crash that hit in 2008.”

He added that those young folks will soon become the recipients of “the largest transfer of wealth in history” via inheritances from baby boomers.

And much of that cash will be parked into non-traditional assets.

“Britcoin will be controlled by a handful of people from the Bank [of England] who have conversations and make decisions behind closed doors,” said Green.

“Bitcoin is controlled by no one and discussions are held out in the open and decisions are transparent and community-based. Which one do you think is the future of money?”

After a recent slump, Bitcoin has gone from about $46,500 to $54,400 this week alone. Ethereum has rallied less dramatically, heading from about $3,000 to $3,120.

The post 3 reasons why new ‘Britcoin’ will drive Bitcoin higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 to overcome low interest rates, then you may want to look at the dividend shares listed below.

Both options offer investors attractive yields that are superior to anything you’ll find with term deposits and savings accounts. Here’s what you need to know about them:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is this leading owner, manager, and developer of retail parks with a portfolio of 20 centres valued at $2.2 billion. At the last count, Aventus had a diverse tenant base of 593 quality tenancies, with national retailers representing 87% of its total portfolio.

It has been thanks partly to this tenancy mix, and its overweight exposure to household goods and everyday needs, that Aventus has been a very strong performer during the pandemic. In fact, it continues to report growth and property valuation increases.

One broker that expects this solid form to continue is Morgans. It currently has an add rating and $3.26 price target on its shares.

The broker is also expecting its dividends to continue growing. It is forecasting distributions of 17.5 cents per share in FY 2021 and then 17.8 cents per share in FY 2022. Based on the latest Aventus share price, this represents 5.6% and 5.7% yields, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is this supermarket giant. Coles could be a great option for income investors due to its defensive qualities, strong market position, and solid long term growth prospects.

The latter is being underpinned by its Refresh Strategy, which is leading to significant investments in its online business, distribution, and automation.

The team at Morgan Stanley are positive on the company and have a buy rating and $19.00 price target on its shares. The broker is also forecasting fully franked dividends of 57 cents per share in FY 2021 and then 59 cents per share in FY 2022.

Based on the latest Coles share price, this will mean yields of 3.25% and 3.35%, respectively, over the next two years.

The post 2 ASX dividend shares that analysts rate as buys 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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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