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The National Australia Bank Ltd (ASX: NAB) share price has had a very strong year. Over the last 12 months it has risen by 45%.

In the 2021 calendar year to date it has gone up by 14.3%, and that does not include the dividend return paid to shareholders.

The NAB share price is recovering, what about the profit?

A year ago the world was in the middle of the COVID-19 global lockdowns. At that time, NAB was provisioning a large amount of capital to cover the bank for a possible wave of bad loans.

In FY20, NAB’s credit impairment charges increased 201% to $2.76 billion and as a percentage of gross loans and acceptances, rose 31 basis points to 46 basis points. Those FY20 charges included $1.86 billion of additional forward looking collective provisions to reflect potential COVID-19 impacts. The bank noted elevated levels risk in some sectors including aviation, tourism, hospitality and entertainment, retail trade and commercial property.

It generated FY20 full year statutory net profit of $2.66 billion and cash earnings of $3.71 billion – down 36.6% on FY19. Excluding large notable items, it made $4.73 billion of cash earnings, down 25.9%.

But the economic recovery from that has been stronger than the bank was expecting.

A couple of months ago in the FY21 half-year result release, the NAB CEO Ross McEwan said:

The rebound in the Australian and New Zealand economies from COVID-19 has been better than expected. This, along with the vaccine rollout and continued strong health outcomes, make us optimistic about the outlook.

But risks do remain. The recovery is not even, and some customers such as those in international travel and hospitality, particularly in CBD areas, still face significant challenges. Longer term outcomes for these customers depend on a number of factors expected to become clearer in coming months. These include the impact of jobkeeper ending, timing of the vaccine rollout and the reopening of international borders.

Since the release of the NAB half-year result on 6 May 2021, the NAB share price has gone down by around 4%.

NAB’s half-year result

In NAB’s half-year result it reported $3.21 billion of statutory net profit. It also reported $3.34 billion of cash earnings, up 94.8%. The cash earnings growth was 35.1% excluding large notable items.

The major bank revealed that credit impairment charges were actually a write-back of $128 million, compared to a charge of $1.16 billion in the first half of FY20.

At the time of the result release, the bank said:

We are optimistic about the future. Economic and health outcomes are improving rapidly, we are making good progress implementing our refreshed strategy and momentum is building across our business. While there is still much to do, we are on the right track, creating a simpler and more accountable business. This is enabling us to more consistently get the basics right and deliver for our colleagues and customers.

Should investors look at the NAB share price?

Brokers have noted that recovery of profit for NAB and the potential for capital returns with the excess capital sitting on the balance sheet.

However, the NAB share price is no longer a buying opportunity to most of the brokers. For example, Morgan Stanley thinks NAB is a hold with a price target of $27.20.

Morgans thinks the NAB share price share price is a hold as well, with a price target of $27.50.

According to Morgans, NAB shares are valued at 13x FY22’s estimated earnings, with a FY22 grossed-up dividend yield of 7.1%.

The post It has been a big past year for the National Australia Bank (ASX:NAB) share price appeared first on The Motley Fool Australia.

More reading

• Is now a good time now to buy National Australia Bank (ASX:NAB) shares?
• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
• ANZ (ASX:ANZ) share price takes the cake among big four bank shares
• 2 buy-rated ASX dividend shares for income investors
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high

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 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 Coles Group Ltd (ASX: COL) share price is down 9.08% in 2021 so far on yesterday’s close of $16.82 a share.

Conversely, 2021 has been very kind to the S&P/ASX 200 Index (ASX: XJO) and a whole range of ASX 200 shares so far.

ASX banks like Commonwealth Bank of Australia (ASX: CBA), ASX miners like BHP Group Ltd (ASX: BHP) and telco Telstra Corporation Ltd (ASX: TLS) shares are all double digits in the green year to date.

Yet the Coles share price is at the same level as it was back in February 2020 (just before the pandemic hit). Coles shares are also around 12% below the all-time high of $19.26 that we saw back in August last year.

So why isn’t Coles joining the ASX 200 party? Good question.

What’s behind the Coles share price’s lacklustre 2021 performance?

Investors have seemingly been lukewarm on Coles ever since the grocery giant delivered its half-year earnings update back on 17 February.

By the end of trading on 18 February, the Coles share price was down more than 10%.

So what spooked investors? Although Coles delivered bumps in revenue, earnings, profits and dividends, it may have been the caveat that Coles’ management attached these results that got investors second guessing.

Management stated:

Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22. Coles will be cycling elevated sales from COVID-19 in Supermarkets late in the third quarter, for the remainder of the second half, and most of FY22.

Given the malaise that the Coles share price has been in ever since, it could be that investors are taking the company at its word.

Analyst tips solid growth for Coles

Despite the headwinds for the Coles share price so far in 2021, one top analyst is tipping solid growth for the company in the coming decade.

Goldman Sachs has a current buy rating on Coles and has set a $19.40 price target. It forecasts a fully franked dividend of 62 cents per share in FY 2021, increasing to 67 cents in FY 2022.

At the last Coles share price of $16.82, the company has a market capitalisation of $22.44 billion, a price-to-earings (P/E) ratio of 21.39 and a trailing dividend yield of 3.6%.

Coles is expected to post its full-year FY21 results on 18 August.

The post It hasn’t been a great 2021 so far for the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

More reading

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• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• These 2 high-yielding ASX dividend shares are rated as buys by brokers

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re interested in adding a growth share or two to your portfolio, then you may want to look at the three listed below.

These three ASX growth shares have been rated as buys and tipped to grow strongly over the long term. Here’s why they could be excellent buy and hold options:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. Breville has been growing at a solid rate for years and looks well-placed to continue this positive trend in the future. This is thanks to the popularity of its products, favourable tailwinds such as working from home, its ongoing international expansion, and its investment in research and development. UBS is bullish on its prospects and expects its growth to continue. The broker currently has a buy rating and $35.70 price target on its shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to consider is Domino’s. This pizza chain operator is another company that has been growing at a solid rate for some time. And like Breville, it has been tipped to continue doing so in the future. Domino’s growth has been driven by the popularity of its products, its focus on technology, and its store expansion. Positively, all these drivers are still in place. This is particularly the case with its expansion plans, with management aiming to double its network again over the next decade. Bell Potter is a fan of Domino’s and currently has a buy rating and $122.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service provider. The Hipages platform connects tradies with residential and commercial consumers, providing them with job leads from homeowners and businesses. It also provides tradies with the tools from which they can run the administration side of things. At present the company has a growing but modest share of industry advertising spend. However, analysts at Goldman Sachs see scope for this to increase to upwards of ~60% in the future. In light of this, it is very positive on the company’s future and see a huge growth runway ahead of it. Goldman Sachs has a buy rating and $3.40 price target on its shares at present.

The post 3 ASX growth shares that could be excellent buy and hold options 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. owns shares of and has recommended Hipages Group Holdings 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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If an investor has some money to invest, then there are a few ASX shares that could be candidates worthy of being considerations. 

Share prices are always changing, so different businesses and investments can become better value (or more expensive) quite quickly.

Analysts think that the businesses below might be opportunities:

Pacific Current Group Ltd (ASX: PAC)

Pacific is an asset management business. Specifically, it takes investment stakes in asset managers around the globe.

Some of the managers that it currently has a stake in includes GQG, Carlisle, ROC Partners, Victory Park and Proterra.

It is currently rated as a buy by the broker Ord Minnett with a price target of $6.70. That suggests the Pacific Current share price could potentially rise by over 15% over the next 12 months, if Ord Minnett is proved right.

Whilst growth in funds under management (FUM) within its investments doesn’t directly translate into the same growth of revenue or profit for the Pacific, it can be quite correlated.

In the FY21 half year result, Pacific reported that its management fee revenue went up by 10% and operating expenses went down 24%. Its core management profitability is increasing, though performance fees can fluctuate. A drop in performance fees of the underlying managers was why underlying net profit after tax (NPAT) dropped 13.4% in the first six months of FY21.

The ASX share recently made a new investment called Astarte Capital Partners, based in London. The Astarte model is to provide anchor/seed LP capital, working capital and fundraising support to operating experts and emerging investment managers to support their growth. It diversifies Pacific’s business further.

Ord Minnett thinks that Pacific is going to pay a grossed-up dividend yield of 9.2% in FY22. According to the broker, Pacific Current is valued at 10x FY22’s estimated earnings.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ASX share is an exchange-traded fund (ETF) that focuses on high-quality stocks that are listed in the US.

The idea is that Morningstar analysts search the share market for businesses that are predicted to be able to maintain a strong competitive position for many years into the future.

To make it into the portfolio, those businesses with strong moats must be trading at attractive prices relative to Morningstar’s estimate of fair value. In other words, the analysts believe the businesses are at a good value to hopefully make returns.

At the last disclosure, the ASX share’s biggest holdings in the portfolio were: Servicenow, Amazon.com, Microsoft, Alphabet, Tyler Technologies, Facebook and Salesforce.com.

In terms of the sector allocation, there are five industries with double digit weightings: healthcare (20.3%), IT (16.6%), industrials (15.4%), financials (13.3%) and consumer staples (11.1%).

The ETF has an annual management fee of 0.49%, which is less than many of the Australian active managers that are focused on global shares.

Past performance is no guarantee of future performance. But the Morningstar investment method has proven successful. Over the last five years, VanEck Vectors Morningstar Wide Moat ETF has returned an average of 19.2% per annum, outperforming the S&P 500’s average return per annum of 16.8% per annum over the same time period.

The post Have money to invest? Here are 2 ASX shares that could be buys appeared first on The Motley Fool Australia.

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• 2 ASX growth shares that could be buys in July 2021
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• Got money to invest? Here are 2 ASX shares that could be buys
• Diversify your portfolio with these quality ETFs

Motley Fool contributor Tristan Harrison owns shares of PACCURRENT FPO. 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 VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Afterpay Ltd (ASX: APT) shares have been on a tear in the past month, gaining 25.1% for investors.

Just on Thursday alone, the buy now, pay later (BNPL) stock spiked up 3.03% to close the day at $123.65.

The Afterpay share price seems to be a microcosm of a shift on the ASX.

For 3 solid months from February, growth shares were getting absolutely hammered as investors turned to value shares that benefitted the most from the post-COVID ‘reopening’ trade.

For example, the S&P/ASX All Technology Index (ASX: XTX) fell more than 20% from 15 February to 19 May.

But ASX growth shares have since made a stunning comeback. The All-Tech index has gained more than 20% since that May trough.

So if you’re confused about whether value or growth is in favour, you’re not the only one.

Afterpay shares could have more upside to run

One team that’s not confused are the equities analysts at Macquarie.

The Motley Fool’s James Mickleboro reported Thursday that those experts reckon more explosive growth for the fintech is not out of the question over the next few years.

The broker rated Afterpay shares as a buy and slapped on a price target of $140.

The product pipeline is what seems to be impressing the analysts.

The Afterpay Money app will be launched in Australia soon. In the US, the fintech’s app last month onboarded a bunch of big-name retailers to allow customers to buy now, pay later even if the merchant is not affiliated with the service.

The 12 brands add up to “almost half” of all the e-commerce that takes place in the US.

Online shopping had not died out even as vaccinations have triggered a transition to post-pandemic life, according to Afterpay North America general manager Zahir Khoja.

“Consumers still want the convenience and flexibility of buying with the click of a mouse as part of their ‘new normal’”, he said in June.

“We are thrilled to continue to support our customers by allowing them to shop every day at their favourite brands with Afterpay for things they need and want in their lives.”

Afterpay was founded in 2014 by Nick Molnar and Anthony Eisen. The Afterpay share price made its ASX debut in 2016, on the back of an initial public offering (IPO) that sold stocks for $1 each.

The post The Afterpay (ASX:APT) share price has now soared 25% in the last month appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO and Macquarie Group Limited. 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 and 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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If you’re looking to invest in the resources sector, then you may want to look closely at the highly rated ASX 200 mining shares listed below.

They have both been named as buys recently and tipped to generate strong returns for investors. Here’s what you need to know about them:

Rio Tinto Limited (ASX: RIO)

The first ASX 200 mining share to look at is Rio Tinto. It is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Chief among them is iron ore, which contributes significantly to the company’s earnings. This is a big positive given that the steel making ingredient is currently trading at sky high levels.

One broker that thinks the Rio Tinto share price is great value right now is Macquarie. It recently retained its outperform rating and lifted its price target to $163.00. Its analysts are expecting favourable commodity prices to support strong earnings and dividends in the near term.

In fact, with the Rio Tinto share price currently fetching $126.22, Macquarie is forecasting a double digit fully franked dividend yield in FY 2021 and something similar next year.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to look at is South32. It is a mining company with exposure to a range of commodities such as alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

It is thanks to its aluminium exposure that analysts at Goldman Sachs are bullish on South32. The broker believes that aluminium is in the early stages of a multi-year bull market and expects South32 to benefit greatly.

It is for this reason that the broker has South32 on its conviction buy rating with a $3.80 price target. This compares to the latest South32 share price of $2.94. Goldman is also forecasting generous dividends in the near future. In FY 2021 it is expecting a yield in the region of 3.3%, whereas next year it is forecasting a yield closer to 8.5%.

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

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• 5 things to watch on the ASX 200 on Friday
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• Leading brokers name 3 ASX shares to buy today
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• Iluka (ASX:ILU) share price boosts 10%, hits new 52-week high

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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One thing the S&P/ASX 200 Index (ASX: XJO) is not short of is dividend shares. Which certainly is a big positive given how low interest rates are right now.

With that in mind, I have picked out two ASX 200 dividend shares that analysts rate as buys. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles. This supermarket operator has been tipped to grow at a solid rate over the next decade.

This is expected to be underpinned by its strong market position and its Refreshed Strategy. The latter is cutting costs, making its operations more efficient, improving its online business, and focusing on automation through its soon-to-be-built distribution centres with Ocado.

Goldman Sachs is very positive on Coles. It currently has a buy rating and $19.40 price target on its shares. The broker is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022. Based on the current Coles share price of $16.82, this represents yields of 3.7% and 4%, respectively, over the next two years.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been rated as a buy is Westpac. Morgan Stanley is bullish on the banking giant and has a buy rating and $29.20 price target on the company’s shares.

The broker believes Westpac can continue to outperform the ASX 200. This is thanks to a continuing earnings upgrade cycle and a better outlook for revenue growth. In addition to this, it likes Westpac due to its current valuation and the prospect of significant capital management.

Morgan Stanley is forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $25.53, this will mean yields of 4.6% and 4.9%, respectively.

The post Why analysts love Westpac (ASX:WBC) and this ASX 200 dividend share appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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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ASX tech shares could be the place to look for long-term growth ideas.

Technology companies have inherent advantages compared to some sectors because of how relatively little it costs to sell a new piece of software to a customer. That can lead to higher profit margins for the business over time once they reach a certain size.

Some businesses have large, long-term goals where they hope to win more market share and become bigger companies.

Here are two to think about:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a business that is helping large and medium US churches turn digital.

It offers a number of different services. Pushpay processes billions of dollars of digital donations for churches in the US. The company is now looking to expand into the Catholic segment.

Pushpay also offers a number of tools for churches. It offers a livestreaming service so people can stay connected with the church, even in this era of COVID-19. The ASX tech share also offers things like donation tracking, community communication and church administration.

Pushpay has been proving its scalability with rising profit margins. In FY21, Pushpay operating revenue went up 40%, whilst earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) went up 133% and net profit jumped 95%.

The business is seeing even faster growth of operating cashflow, which increased by 145% to US$57.6 million in FY21. It used the money that year to fully repay its bank debt. Management said its positive cashflow provides flexibility, as it continues to assess further potential strategic acquisitions that broaden Pushpay’s current proposition and add significant value to the business.

Pushpay is expecting further operating leverage to accrue as revenue grows and expense growth remains limited.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retail businesses on the ASX.

It sells many thousands of products through lots of suppliers. The products are shipped straight from the suppliers to customers, which makes the delivery quicker. It also means Temple & Webster doesn’t need to hold (as) much inventory.

The ASX tech share is planning to invest heavily to capture the large market opportunity that is presented by the growth of online shopping.

It is focusing on advertising, increasing its product range, expanding into new categories, investing in its shopping experience and improving its business to business offering and sales.

Temple & Webster pointed out that more than 20% of furniture and homewares was bought online in the US during 2020. The company believes that Australia is following the same trajectory. It estimates that in 2020, around 9% of furniture and homewares were bought online in Australia, almost doubling from 5% bought in 2019. Online penetration in both markets is expected to increase significantly.

As it gives bigger, it’s expecting scale benefits such as improved supplier terms, a slowing investment in fixed costs and a higher percentage of exclusive products with higher gross profit margins.

It’s expecting a low EBITDA margin over the next couple of years, but then could achieve a higher margin than many of its comparable offline peers over the long-term.

The post 2 high-quality ASX tech shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX shares that could be buys
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• Here are the 5 worst performing ASX 200 tech shares from FY21
• Why the Pushpay (ASX:PPH) share price is under pressure
• 2 impressive ASX shares that could be buys in July 2021

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and recorded a modest gain. The benchmark index rose 0.2% to 7,341.4 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower this morning. This follows a poor night on Wall Street which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.85%, and the Nasdaq tumble 0.7% lower. Global economic recovery concerns weighed on investor sentiment.

Oil prices rebound

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid finish to the week after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.14 a barrel and the Brent crude oil price is up 1.2% to US$74.32 a barrel. Traders were bidding oil prices higher after positive US inventory data.

Iron ore price falls

Miners with iron ore exposure such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could come under pressure today after the price of the steel-making ingredient softened. According to Metal Bulletin, the spot iron ore price fell almost 2% to US$218.04 a tonne.

Netwealth given neutral rating

The Netwealth Group Ltd (ASX: NWL) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker responded to the investment platform provider’s fourth quarter update by retaining its neutral rating but lifting its price target to $16.33. Goldman was pleased with its solid end to the year but remains neutral on valuation grounds. The Netwealth share price is currently trading at $16.30.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,803 an ounce. Traders were buying the precious metal amid concerns over the US recovery from COVID-19.

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

More reading

• Can the ASX 200 hit 8,000 points by the end of the year?
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• How new US oil forecasts could impact ASX energy shares
• The BHP Group share price is rising again — so where to from here?
• Netwealth (ASX:NWL) share price up 5% on quarterly update

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 Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. 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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Fortunately for income investors in this low interest rate environment, the Australian share market is home to plenty of shares offering very generous yields.

Two that do just this are listed below. Here’s why they could be top options for income investors:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a leading owner, manager, and developer of retail parks. Aventus has been performing very positively during the pandemic. This has been driven by its overweight exposure to categories such as household goods and everyday needs retailing, which have experienced strong and sustained consumer demand.

Things have been going so well that Aventus recently revealed that the value of its properties have increased by 12% since the end of December. It also advised that it expects its earnings to grow 7% this year, compared to its prior guidance of 4% growth.

This went down well with analysts at Goldman Sachs, who retained their buy rating and lifted their price target to $3.27. It commented: “Today’s update solidifies our view that AVN is relatively well positioned in the current environment, given its Large Format Retail portfolio derives 37% of income from everyday needs tenants and the remainder from homewares, electrical, furniture, bedding and hardware, all of which we expect to continue to perform relatively well.”

The broker is also forecasting distributions per share of 16.7 cents, 18.85 cents, and then 20.4 cents between now and FY 2023. Based on the current Aventus share price of $3.14, this represents yields of 5.2%, 5.9%, and 6.4%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. Thanks to improving trading conditions which are being underpinned by Australia’s strong economic recovery, this banking and insurance giant appears well-placed to pay attractive dividends to shareholders in the near term.

The analysts over at Citi certainly believe this will be the case. In fact, the broker suspects that things are going so well that a special dividend could be declared this year. Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022.

With the Suncorp share price currently fetching $11.36, this implies fully franked yields of 5.35% and 5.1%, respectively, over the next two years. Citi has a buy rating and $11.80 price target on its shares.

The post 2 top ASX dividend shares for income investors 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 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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