Tag: Motley Fool

If you’re trying to find a way to overcome low interest rates, then you might want to look at the Australian share market.

This is because there are a large number of shares that pay generous dividends each year. Two such shares are listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 warehouses leased to the hardware giant.

BWP has been a positive performer in 2020 and 2021 despite the pandemic. This has been driven largely by the quality of its tenancies. With Bunnings Warehouse reporting stellar sales growth, BWP has been able to collect rent as normal. It has even seen the value of its properties increase strongly during this time.

In light of this, the company is expecting to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.26, this equates to an attractive 4.3% dividend yield.

National Storage REIT (ASX: NSR)

Another dividend share to look at is National Storage. It is one of the ANZ region’s largest self-storage operators with a portfolio of over 200 centres.

And while 200 centres may sound like a lot, management still sees plenty of room to grow its footprint in the highly fragmented self-storage market in the future.

So much so, it recently raised $325 million from investors via a capital raising. These funds will be used to strengthen its balance sheet and replenish its investment capacity. If management can deploy these funds successfully, it could be supportive of further solid earnings and dividend growth in the coming years.

Analysts at Ord Minnett are expecting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.02, this equates to yields of 4% and 4.25%, respectively.

The post 2 top ASX dividend shares with big yields appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares with attractive yields
• Here are 3 ASX shares going ex-dividend next week
• 2 excellent ASX shares for a retirement portfolio
• Here are 2 ASX dividend shares with attractive yields
• 2 high quality ASX shares for retirees

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.

from The Motley Fool Australia https://ift.tt/3hghCqb

On Friday the S&P/ASX 200 Index (ASX: XJO) was on form and stormed higher. The benchmark index rose 0.6% to 7,308.6 points.

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

ASX 200 expected to open flat

The Australian share market is expected to start the week where it ended it. According to the latest SPI futures, the ASX 200 is expected to open the day flat. This is despite a very positive end to the week on Wall Street, which saw the Dow Jones rise 0.45%, the S&P 500 climb 0.75%, and the Nasdaq storm 0.8% higher.

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed end to the week for oil prices. According to Bloomberg, the WTI crude oil price fell 0.1% to US$75.16 a barrel and the Brent crude oil price rose 0.45% to US$76.17 a barrel. Traders weren’t sure whether to buy or sell oil as OPEC talks dragged on into the weekend.

Tech shares could rise

Tech shares including Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) could start the week on a high. This follows a solid night of trade on the Nasdaq index on Friday, which saw the tech-heavy index hit a record high after a strong US jobs report. Given that the local tech sector tends to follow the Nasdaq’s lead, this could bode well for today’s session.

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.4% to US$1,783.30 an ounce. Traders were buying the precious metal despite the strong jobs report.

Magellan given sell rating

The Magellan Financial Group Ltd (ASX: MFG) share price could be overvalued according to analysts at Goldman Sachs. According to the note, the broker has retained its sell rating but lifted its price target to $49.20. The broker believes the market is underestimating potential losses relating to its Barrenjoey investment. It also believes its recent performance means the earnings risks are skewed to the downside.

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

More reading

• Why the Telstra (ASX:TLS) share price outlook suddenly improved last week
• 5 best ASX energy shares of the 2021 financial year revealed
• 5 best ASX 200 mining and resource shares of financial year 2021
• Here are the 5 best ASX telecom shares of the 2021 financial year
• These were the best performing ASX 200 shares last week

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2TsWp3u

There are some exchange-traded funds (ETFs) that might be good ideas to think about in July 2021.

Certain ETFs might be able to give exposure to a certain sector, stock exchange or country. They may be able to give exposure to the underlying growth of companies or trends.

Here are two to think about:

Betashares Global Cybersecurity ETF (ASX: HACK)

There are a growing number of cyberattacks and cybercrime around the world. Indeed, there was another attack in the last couple of days according to media reporting. About 200 US businesses have been hit when Kaseya was targeted and then it spread through corporate networks.

According to Statista, the global cybersecurity market is expected to grow from $137.6 billion in 2017 to $248.25 billion in 2023.

This ETF is invested in businesses that are involved in various elements of the digital world. These are the different weightings: systems software (51.4%), IT consulting and other services (15.6%), communications equipment (13.1%), internet services and infrastructure (9.1%), application software (6.8%) and aerospace and defence (4%).

It has a total of 40 holdings.  The biggest 10 positions in the portfolio are: Zscaler, Accenture, Okta, Cisco Systems, Cloudflare, Varonis Systems, Splunk, Fortinet and Verisign.

The annual management fee is 0.67%. Including the fees, the net returns have been 19.3% per annum since inception in August 2016. However, past performance is not an indicator of future performance.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Instead of a sector, this ETF is about giving exposure to a particular stock exchange in the US called the NASDAQ.

This ETF, which may be worth considering in July 2021, owns 100 of the largest businesses on the NASDAQ.

Investors may have heard of many of the largest holdings in the portfolio including Apple, Microsoft, Amazon.com, Facebook, Alphabet, Tesla, Nvidia, PayPal and Adobe.

Whilst IT and communication services (which Facebook and Alphabet count as), there are other sectors represented in this portfolio as well with businesses like PepsiCo, Costco, Booking, Intuitive Surgical, Moderna and Mondelez.

Obviously all of the businesses in the portfolio are listed in the US. But the underlying earnings are globally based. Businesses like Alphabet, Facebook, Apple and Microsoft generate earnings from most countries around the world.

Past performance is no guarantee of future performance. But the past returns of this ETF have materially beaten the returns of the ASX. Since inception in May 2015, the Betashares Nasdaq 100 ETF has produced an average return per annum of almost 21%.

There are a couple of points that BetaShares makes about this ETF. The investment gives exposure to many of the businesses that are changing the way we live. It also has a heavy focus on technology, which doesn’t have much of an allocation in the Australian market.

The post 2 ETFs that could be buys in July 2021 appeared first on The Motley Fool Australia.

More reading

• 3 quality ETFs for ASX investors in July
• 2 quality ETFs for the new financial year
• Afterpay and Zip were among the most traded ASX shares last week
• 2 highly rated international ETFs for ASX investors
• Microsoft (NASDAQ:MSFT) customers compromised in a cyberattack

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 BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3yih88I

The small end of the Australian share market is home to a number of companies with the potential to grow strongly in the future.

Two small caps that investors may want to get better acquainted with are listed below. Here’s what you need to know about them:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. This is used to help inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for Mach7’s offering has been growing strongly in recent years and is expected to continue doing so in the years to come. This is thanks to the quality of this software and trends such as telehealth. In respect to the latter, the company notes that COVID-19 has popularised telehealth services, which are creating a need for this type of technology.

And while it has been growing strongly, it is still only scratching at the surface of its overall market opportunity. According to management, the company’s total addressable market is estimated to be US$2.75 billion. This gives Mach7 a long runway for growth over the next decade.

Morgans currently has an add rating and $1.68 price target on its shares. This compares to the latest Mach7 share price of $1.03.

Whispir Ltd (ASX: WSP)

Another small cap share to watch is Whispir. It provides businesses with a cloud-based communications platform that brings all communications channels like email, text messaging and web chatting together in one easily accessible space. This helps businesses large and small eradicate communication inefficiencies so their staff and customers can connect in new and productive ways.

As with Mach7, demand has been increasing strongly for its offering. This has led to rapid recurring revenue growth in recent years. The good news is that Whispir’s current revenues are only a small fraction of its addressable market.

For example, at the end of the third quarter, Whispir’s annualised recurring revenue was up 20.3% to $50.3 million. This compares to its total addressable market of US$4.7 billion in the just United States market.

Ord Minnett currently has a buy rating and $4.25 price target on the company’s shares. This compares favourably to the latest Whispir share price of $2.73.

The post 2 highly rated small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• ASX company boss finally exits after 98% wiped off share price
• Here are 3 ASX tech shares tipped for big things
• 2 exciting ASX tech shares that have been named as buys
• 4 exciting small cap ASX shares to watch
• Fund managers are buying these ASX shares

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 MACH7 FPO and Whispir Ltd. The Motley Fool Australia has recommended MACH7 FPO and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3jHc2iu

The outlook for the Telstra Corporation Ltd (ASX: TLS) share price is looking brighter and it isn’t only because of the $2.8 billion part-sale of its towers business.

While the transaction certainly caught the imagination of the market and prompted some analysts to upgrade their price target on the Telstra share price, there’s another reason to be bullish on Australia’s largest telco.

Its competitor Vodafone removed all promotional discounts on its SIM-only plans last week, according to Goldman Sachs.

Telstra share price the biggest winner

Shareholders liked the news. The TPG Telecom Ltd (ASX: TPG) share price jumped 1.1% last week to $6.22 (TPG merged with Vodafone).

That’s ahead of the 0.3% gain by the S&P/ASX 200 Index (Index:^AXJO), although the Telstra share price is the big winner with a 5.4% surge.

But as I mentioned, Telstra’s surge was partly driven by its large divestment and promise of a $1 billion plus capital return.

Price rises and expanding margins

The move by Vodafone means an effective price increase for Vodafone customers of between $5 and $15 a month, or 13% to 25%.

“These changes have driven Vodafone (and industry) entry level pricing up to A$40 [a month],” said the broker.

“We are pleased with this development, which continues to support our high conviction on quantum of mobile market repair in Australia.”

Conducive competitive environment

The return of a more rational competitive environment is good news for Telstra’s margins. Vodafone is the last of the big three mobile operators to lift prices after Optus implemented price rises of a similar magnitude in May.

Telstra was the first to move and for a while, it looked like the odd one out. It was a calculated gamble that paid off as it could have lost market share if competitors kept their prices low.

Goldman noted that Telstra’s pricing plans offered at JB Hi-Fi Limited (ASX: JBH) was unchanged. This is good news as the broker believes that this was previously seen as a key inhibitor to Vodafone raising pricing.

Telstra share price could be cum-upgrade again

What it also means is that Telstra sees the earnings benefit of higher average revenue per user (ARPU) outweighed the potential lost subscribers.

“These changes support our view that Telstra is set to grow ARPU meaningfully ahead of consensus expectations across FY21-23E,” said Goldman.

“And [Telstra] will also likely introduce further price rises in FY22E (given its premium is now +20% vs. its +35% 3Y average, despite expanding 5G lead).”

The broker is recommending Telstra as a “buy” with a 12-month price target of $4.20 a share. It rates the TPG share price as “neutral” with a 12-month price target of $5.90 a share.

The post Why the Telstra (ASX:TLS) share price outlook suddenly improved last week appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 5 best ASX energy shares of the 2021 financial year revealed
• 2 blue chip ASX dividend shares with +4% yields
• 5 best ASX 200 mining and resource shares of financial year 2021
• Here are the 5 best ASX telecom shares of the 2021 financial year

from The Motley Fool Australia https://ift.tt/2Uodnjz

If you’re looking to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.

But which shares should you consider? Two that could be worth considering are listed below. Here’s why they are highly rated:

Mineral Resources Limited (ASX: MIN)

Mineral Resources is a mining and mining services company with a world class portfolio of operations across lithium and iron ore. These are two of the hottest commodities around at the moment and are experiencing very strong demand from electric vehicle and steel making markets, respectively.

In respect to lithium, Mineral Resources owns the Wodgina operation. It is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. The company also has the Mt Marion Lithium project in its portfolio. This project is operated by Mineral Resources under a life-of-mine mining services contract and is jointly owned by it and Jiangxi Ganfeng Lithium.

As for iron ore, the company’s portfolio includes the Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Analysts at Macquarie are very positive on the company. So much so, they have an outperform rating and lofty $73.00 price target on its shares. This compares to the latest Mineral Resources share price of $55.54. Macquarie is also forecasting big dividends in the near term and estimates yields greater than 5% over the next two years.

Orocobre Limited (ASX: ORE)

Another mining share to consider is Orocobre. It is a lithium miner with operations in Argentina. This includes the Olaroz Lithium Project in the Jujuy Province of northern Argentina and Borax Argentina in the Salta-Jujuy region.

But perhaps best of all, is that Orocobre is potentially weeks away from merging with Galaxy Resources Limited (ASX: GXY). The latter’s shareholders will be voting on the merger next month.

If everything goes to plan, management believes the combined entity will be a new force in the global lithium sector. It will also be the world’s fifth largest lithium chemicals company with a diversified production base and exciting growth platform. Positively, management sees scope to unlock significant synergies in the future.

One broker that is particularly positive on Orocobre is Citi. It recently put a buy rating and $7.60 price target on the company’s shares.

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

More reading

• 5 best ASX 200 mining and resource shares of financial year 2021
• These were the best performing ASX 200 shares last week
• Galaxy (ASX:GXY) and Orocobre (ASX:ORE) shares rise on merger update
• The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why
• Meet the best performing ASX 200 shares of FY21. Are yours on the list?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources 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.

from The Motley Fool Australia https://ift.tt/3whBNZh

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on the auto parts retailer’s shares slightly to $9.55. The broker appears to be pleased with Bapcor’s recent strategy update and notes that it has many medium and long term growth opportunities. Particularly given favourable trading conditions and consumer mobility trends. In addition to this, the company’s bold store expansion plans and its growing private label business are expected to be key growth drivers. The Bapcor share price ended the week at $8.35.

Telstra Corporation Ltd (ASX: TLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this telco giant’s shares to $4.15. This follows news that the company has agreed to sell 50% of its InfraCo Towers business for $2.8 billion, with ~50% of net proceeds to be returned to shareholders. Credit Suisse notes that the sale price was higher than it expected, which it expects to be accretive to earnings. Outside this, the broker remains positive on Telstra due to its improving outlook and encouraging mobile trends. The Telstra share price was fetching $3.79 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Analysts at Morgan Stanley have retained their overweight rating and $29.20 price target on this banking giant’s shares. According to the note, the broker believes Westpac can outperform the ASX 200 over the next 12 months. Morgan Stanley expects this to be driven by a continuing earnings upgrade cycle, potential capital management, and its attractive valuation. The Westpac share price was trading at $25.64 on Friday afternoon.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX dividend shares with +4% yields
• Here are the 5 best ASX telecom shares of the 2021 financial year
• ASX 200 up, Westpac caught in potential fraud, RPMGlobal rises
• 3 ASX 200 shares moving on the market today
• ASX blue chips set to unleash buybacks and dividends! But which is better?

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 Bapcor 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.

from The Motley Fool Australia https://ift.tt/3hBOAjV

There are some ASX shares that might make compelling ideas to think about in July 2021.

Some businesses might have the potential to produce growth over the longer-term as the world recovers from, and adapts, to COVID-19.

Here are two ideas that could be considerations:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer that aims to bring affordable, on-trend jewellery to its global customer base.

It’s currently rated as a buy by the broker Morgans, which has a price target of $17.95. That suggests a potential upside of more than 10% over the next 12 months.

The broker is attracted to the reopening play for Lovisa, as well as the Beeline acquisition that the company made.

However, the business does still continue to experience disruptions to trading and temporary store closures as a result of COVID-19 restriction measures. Even so, some of its markets are back trading including the UK and France (where there had been lengthy store closure periods). However, some Australian stores have been impacted in recent weeks.

Lovisa is now investing in its digital capabilities as online demand increases. In the first half of FY21, its digital sales increased 335%. The ASX share said that the digital channel remains an important part of its global strategy critical to providing customers with the full range of shopping options that they require. It continues to invest in support structures to drive ongoing growth in this area and remain focused on maintaining the profitability levels of online sales.

Providing commentary after the release of the FY21 half-year result, Lovisa managing director Shane Fallscheer said:

We are pleased with the performance of the business for the half year, in particular with the improving sales performance we saw through Q2 despite the continued global challenges we face with the impact of COVID, and the strength of our balance sheet puts us in a great position to take advantage of future opportunities as they arise.

According to Morgans, the Lovisa share price is valued at 43x FY22’s estimated earnings.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This ASX share is about giving investors access to investing in Asia’s largest technology businesses outside of Japan.

According to BetaShares, due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

In terms of the actual holdings, there are a total of 50. But you may have heard of some of the largest 10: Tencent, Taiwan Semiconductor Manufacturing, Alibaba, Samsung, Meituan, Pinduoduo, JD.com, Sea, Infosys and Netease.

Some of the above businesses are leaders in their industry in Asia, just like the FAANG shares might be the leaders in their respective industries in western countries.

All of the businesses in this portfolio are technology based, but they are focused on different areas.

Here are the largest sectors in the portfolio and their weightings: Internet and direct marketing retail (28.2%), semiconductors (19.2%), interactive media and services (19.2%) and technology hardware, storage and peripherals (11.4%).

When it comes to costs, this ETF has annual management costs of 0.67%.

Past performance is no guarantee of future performance. However, since September 2018, it has made annual returns per annum of 27.9%.

The post 2 compelling ASX shares that could be buys in July 2021 appeared first on The Motley Fool Australia.

More reading

• 3 quality ETFs for ASX investors in July
• Lovisa (ASX:LOV) share price gains 7% following co-founder’s Honey sale
• 2 quality ETFs for the new financial year
• 2 exciting ETFs for ASX growth investors
• 3 excellent ASX shares for growth investors

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 BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3hxkQob

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. This follows news that Afterpay is offering US consumers a pay anywhere option at some of the country’s largest retailers such as Amazon and Nike. Combined, the 12 retailers account for almost half of all ecommerce volume in the US. UBS sees this as a positive move and has upgraded its sales estimates meaningfully to reflect this. Nevertheless, the broker still believes its shares are severely overvalued at the current level. The Afterpay share price was fetching $118.29 at Friday’s close.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $89.50 price target on this banking giant’s shares. According to the note, the broker expects the majority of the banks to outperform the ASX 200 over the next 12 months. This is due to their attractive valuations, positive outlook, and the continuing earnings upgrade cycle. However, this may not be the case for CBA. It feels Australia’s largest bank’s shares are overvalued at present. The Commonwealth Bank share price ended the week at $99.49.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have downgraded this investment platform provider’s shares to an underperform rating but lifted the price target on them to $16.00. According to the note, the broker made the move on valuation grounds following a strong rise over the last few months. Outside this, the broker is a fan of the company and expects it to continue winning market share in the future. The Netwealth share price was fetching $16.25 at the end of the week.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• The Afterpay (ASX:APT) share price is slipping today while the ASX 200 gains
• ASX 200 up 0.25%: IDP Education rockets, Westpac hit with $87m bill
• Got Zip (ASX:Z1P) shares? Here’s what the company has in store for FY22
• 3 blue chip shares that smashed the ASX 200 index in FY21
• Here are the top 3 performing ASX BNPL shares of FY21 – and they’re not Afterpay

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 AFTERPAY T FPO and Netwealth. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3qIwOQd

ASX energy shares have been among the index’s stronger performers over the 2021 financial year (FY21). A 12-month period that saw the All Ordinaries Index (ASX: XAO) gain 25%.

With that financial year done and dusted, we take a look at the 5 best energy shares on the All Ords to have held from 1 July 2020 through to 30 June 2021.

Spurred on by higher energy prices, these shares all returned 3 or more times the gains posted by the All Ords.

Paladin Energy Ltd (ASX: PDN)

With an FY21 share price gain of 376%, Paladin Energy is hands down the best performing ASX energy share over this time.

The uranium producer has projects in Australia and Africa. It has, among other factors, benefited from rising uranium prices and speculation of still higher prices to come as the world re-examines nuclear power as a means to cut global carbon emissions.

Paladin closed the financial year trading at 51 cents per share.

With 2.68 billion shares outstanding, Paladin currently has a market cap of $1.34 billion.

Karoon Energy Ltd (ASX: KAR)

The second best performing ASX energy share is Karoon Energy. Karoon shareholders enjoyed a 124% price gain during FY21.

The oil and gas exploration company is engaged in projects in Australia, Brazil, and Peru.

Like other energy companies, Karoon has enjoyed some healthy tailwinds from rising crude oil prices. At the beginning of the 2021 financial year, a barrel of brent crude oil was selling for US$42 (AU$56) per barrel. Today that same barrel is worth US$75, an increase of 79%.

Karoon closed the year at $1.34 per share. With roughly 554 million shares outstanding, Karoon has a market cap of $737 million.

Senex Energy Ltd (ASX: SXY)

Coming in at number 3 is Senex Energy, with a financial year share price gain of 87%.

The oil and gas explorer and producer has projects in South Australia and Queensland. And it, too, will have benefited from rising crude and LNG prices, among other drivers.

Senex closed FY21 at $3.43 per share. With just under 184 million shares outstanding, it has a market cap of $630 million.

Senex also pays a dividend yield of 1.16%, 96% franked.

Helios Energy Ltd (ASX: HE8)

With a share price gain of 77%, Helios is the fourth best performing ASX energy share in FY21.

The oil and gas explorer is focused on its Trinity and Presidio projects in the US state of Texas. Trinity is comprised of 3,128 acres of oil and gas leases.

Helios closed the financial year at 18 cents per share. With some 1.65 billion shares outstanding, the company has a market cap of $289 million.

Energy Resources of Australia Limited (ASX: ERA)

Rounding out our list of top 5 ASX energy shares is Energy Resources Australia. The share price gained 74% in FY21.

The company operates the Ranger Uranium Mine in the Northern Territory, and processes and sells uranium oxide.

Like Paladin, Energy Resources Australia has been a beneficiary of higher uranium prices, as nations around the world (chiefly China) are upping their nuclear power ambitions.

Energy Resources Australia closed the year at 26 cents per share. With approximately 3.7 billion shares outstanding, it has a market cap of $960 million.

The post 5 best ASX energy shares of the 2021 financial year revealed appeared first on The Motley Fool Australia.

More reading

• 5 best ASX 200 mining and resource shares of financial year 2021
• Here are the 5 best ASX telecom shares of the 2021 financial year
• These were the best performing ASX 200 shares last week
• ASX 200 up, Westpac caught in potential fraud, RPMGlobal rises
• Here are the 5 best performing ASX tech shares from FY21

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.

from The Motley Fool Australia https://ift.tt/3wfKe7k