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The two ASX growth shares in this article could be worth looking at in July 2021.

Businesses that are growing have the potential to deliver shareholder returns as the profit number compounds.

Here are two ASX growth shares that could be ideas:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that is offered by VanEck, one of the larger ETF providers on the market.

The idea of this investment is that it provides exposure to a diversified portfolio of attractive priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

Morningstar rates businesses on how long it expects that competitive edge to remain for at least a decade and more likely than not be around in 20 years from now.

Investors in this ETF get exposure to a portfolio of around 50 names that are trading at attractive prices relative to Morningstar’s estimate of fair value.

The largest six positions, which all have a weighting of less than 2.9% but more than 2.6%, are: Servicenow, Facebook, Microsoft, Alphabet, Guidewire and Salesforce.

Whilst all of the holdings are listed in the US, the underlying earnings are generated from many countries around the world. There are five sectors that have a weighting of more than 10%: healthcare, information technology, industrials, financials and consumer staples.

After the management fees of 0.49% per annum, it has produced an average net return per annum of 20.4% per annum. Past performance is no indicator of future performance.  

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the largest online retailers of furniture and homewares.

The ASX growth share runs a drop ship model where products are shipped directly to the customers by suppliers. Customers can choose from over 200,000 products. This model enables faster delivery times and reduces the need to hold inventory, allowing for a larger product range. Temple & Webster also has a private label range that is sourced by the company directly.

Since 25 January 2021, the Temple & Webster share price has fallen by 22%. That’s despite the business generating more revenue since then.

In the third quarter of FY21, revenue increased by 112%.

The company is focused on growth and it’s going to heavily pursue that over the next few years. After that growth phase, it expects to have higher margins than many of its comparable offline peers.

It plans to invest in building brand awareness and achieve national brand status within three years to increase first time and repeat customers. The ASX growth share also plans to use tactical pricing and promotions to increase conversion.

Management want to invest in improving the customer experience with enhanced technology, data and personalisation and delivery experience.

The company also wants to improve the customer shopping journey with 3D and AI capabilities.

It wants to improve the product range with new category additions, private label expansion, new product development and launching exclusive ranges with key drop ship suppliers.

The company wants to grow its business to business sales and operational teams to capitalise on returning demand in the commercial sector.

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

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• Why Atomo, Metcash, Temple & Webster, & Woolworths are pushing higher

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd and 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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Passive investing has really caught fire in the past decade, gaining many investors who question the worth of active fund managers.

It involves buying into a fund that merely mirrors a particular index — say the S&P/ASX 200 Index (ASX: XJO) or NASDAQ-100 (NASDAQ: NDX).

The buying and selling of individual shares doesn’t require any human insight, so the fees are usually much lower than actively managed funds.

This ‘warts and all’ approach, according to Betashares director Craig Higson, is fine if you believe the market is completely efficient.

“However, if an investor is seeking to profit from possible mispricings in the market, the question then arises: Is there a manager or process that can potentially identify such mispricings, and offer the possibility of broad market outperformance?”

The answer is fundamental indexing.

Why is market capitalisation the criteria for indices?

Most major indices around the globe allow stocks to be included or excluded based on the size of their market capitalisation.

But isn’t it arbitrary that out of all the metrics, this was chosen as the be-all and the end-all?

A US firm, Research Affiliates, certainly thought so. According to Higson, in 2002 it created a new way of indexing.

“This was at a time not long after the [dot-com] tech bubble, when many stocks in traditional indices were trading at clearly inflated values, and investors suffered accordingly as these stocks reversed to reflect their true or ‘fundamental’ value,” he said.

“Out of RA’s research, fundamental indexing was born.”

Breaking the link between index criteria and share price

Fundamental indexing’s major idea is to not have the share price influence the company’s worthiness to be included in an index.

That way, it’s purely the business’ performance that leads to its inclusion.

“We know market bubbles and sell-offs occur, quite violently at times, and a share price may not always reflect true value,” said Higson.

So the Research Associates Fundamental Indexing (RAFI) uses a formula that takes into account sales, cash flow, book value and dividends to qualify or disqualify a stock from inclusion.

Higson said that this allowed an index to embrace “bargain” shares.

“The fundamental-indexing strategy seeks to overweight relatively cheap stocks — such as those trading at price-to-book and price-to-earnings valuations below their respective long-run averages — while underweighting relatively expensive stocks.”

Does fundamental indexing actually work?

While Higson was explaining fundamental indexing to sell his company’s ETF product Betashares FTSE Rafi Australia 200 ETF (ASX: QOZ), he did present some evidence about the effectiveness of this approach.

He showed the annual returns for FTSE RAFI Australia 200 Index (FTSE: FRAU200) compared to the ASX 200 for the past 27 years.

“RAFI methodology has, on average, added around 1.8% per annum over and above the returns from the S&P/ASX 200 Index,” Higson said.

“The strategy doesn’t outperform every year, but over time has shown a consistent value-add.”

Therefore, Higson argued, this approach still provides automatic stock selection like passive investing — but pursues outperformance like an active manager.

“In many ways, the RAFI approach has delivered on the often-unfulfilled promise of active management, with the cost efficiencies of passive investing.”

The post Passive investing has one huge flaw: Here’s how to get around it appeared first on The Motley Fool Australia.

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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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The buy now, pay later (BNPL) sector caught the interest of many ASX watchers in the 2021 financial year.

Industry darling, the Afterpay Ltd (ASX: APT) share price rocketed 93.7% in FY21, soaring from $60.99 on June 30 2020 to a closing price of $118.17 on June 30 2021 after hitting a 52-week high of around $160 in February of this year.

Despite its strong showing, Afterpay didn’t make it to the top 3 ASX BNPL shares list for FY21.

Let’s take a closer look at the 3 shares that were best in class.

3 best performing BNPL shares of FY21

IOUpay Ltd (ASX: IOU)

The IOUpay share price was a true ASX hero during the 2021 financial year. It gained a whopping 1,075% and its share price went from a measly 2 cents to a respectable 23 cents.

IOUpay is a BNPL provider focused on the South East Asian market. February was by far the best month of the 2021 financial year for the IOU share price – It gained a mammoth 412% in the first 15 days alone.

IOUpay’s incredible February gains were seemingly driven by its agreement with EasyStore. The agreement saw IOUpay’s BNPL service rolled out to EasyStore’s point-of-sales platform – used by more than 7000 merchants across South East Asia.

The most recent news from IOUpay was of a similar agreement it has made with Razer Merchant Services in June.

The company has a market capitalisation of around $129 million, with approximately 551 million shares outstanding.

Fatfish Group Ltd (ASX: FFG)

Another BNPL star of the FY21 was Fatfish Group. The Fatfish share price gained 757% over the 12-months ended 30 June 2021.

Fatfish Group also had an unbelievably good February. Its share price gained 400% over the month after it announced it was to enter the BNPL space through its investee company, Smartfunding.

Then, in early April, Fatfsh acquired an 85% stake in Malaysian-based BNPL company Forever Pay. Finally, later that month, it made its second foray into the sector, purchasing a 55% stake in South East Asian payment provider Pay Direct Technology. The company said the stake would have “impactful synergies” with its BNPL rollout.

Fatfish has a market capitalisation of around $60 million, with approximately 1 billion shares outstanding.

Sezzle Inc (ASX: SZL)

The 2021 financial year was Sezzle’s first full financial year on the ASX – and it performed brilliantly. The Sezzle share price gained 107% in the 12-months ended 30 June 2021.

The BNPL company’s initial public offering (IPO) was on 2 August 2019. Come 30 June 2020, Sezzle shares were trading for $3.76. Exactly one year later, they were going for $8.81.

At its highest point of the financial year, the Sezzle share price was a whopping $11.99. However, it was hit hard by the US-driven tech sell-off in March.

The latest news the market heard from Sezzle, was of its partnership with US retail giant Target Corporation. The news saw the Sezzle share price gain another 22%.

Sezzle has a market capitalisation of around $912 million, with approximately 200 million shares outstanding.

The post Here are the top 3 performing ASX BNPL shares of FY21 – and they’re not Afterpay appeared first on The Motley Fool Australia.

More reading

• Sezzle (ASX:SZL) share price jumps 5.2% during intraday trade
• Got Afterpay (ASX:APT) shares? Here’s what the company has in store in FY22
• These were the best performing ASX 200 shares in June
• BNPL provider Sezzle (ASX:SZL) partners with US media giant
• Unlike Afterpay, this ASX fintech actually makes a profit

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. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Sezzle Inc. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 SeaLink Travel Group Ltd (ASX: SLK) share price will be one to watch when trading opens this morning. This comes after the travel and transport company announced an update to the acquisition of Go West Tours.

Based in regional and remote Western Australia, Go West Tours is a specialist bus passenger transport business. The company mainly serves in the resource sector, providing charter, rental and tour vehicles.

Let’s take a closer look at what the company released in yesterday’s late market news.

SeaLink completes acquisition

SeaLink shares could be on the move today as investors digest the company’s latest announcement.

In a statement to the ASX, SeaLink revealed that it has successfully completed the acquisition of Go West Tours.

The deal sees SeaLink acquire 100% of the shares from the vendors for an enterprise value of $84.7 million. An earnout component of up to $25 million is also included. The latter will be provided depending on Go West Tours meeting specific financial hurdles over the period to 30 June 2023.

In addition, SeaLink advised it has purchased three strategic property assets for a total of $3.8 million.

SeaLink group CEO Clint Feuerherdt said the acquisition provided a new revenue stream, which was especially pleasing given that SeaLink would be expanding into the attractive resources sector transportation market.

SeaLink share price summary

Over the past 12 months, SeaLink shares have catapulted by more than 115%, with an increase of more than 40% in 2021 alone. The company’s share price reached an all-time high of $10.64 in April this year before some profit taking appears to have swooped in.

On valuation grounds, SeaLink commands a market capitalisation of roughly $2 billion, with around 218.4 million shares on its registry.

At the close of trade on Wednesday, SeaLink shares finished the day at $9.49 – up 0.11%. The S&P/ASX 200 Index (ASX: XJO) closed the trading day at 7,265 points – down 0.6%.

The post Why the SeaLink (ASX:SLK) share price is on watch today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price will be one to watch this morning.

As well as announcing the appointment of its new Chief Marketing Officer, Edith Bailey, the fresh milk and infant formula company was the subject of a reasonably bullish broker note.

Is the A2 Milk share price good value?

According to a note out of Bell Potter, its analysts have retained their buy rating and $8.50 price target on its shares.

Based on the latest A2 Milk share price of $6.20, this implies potential upside of 37% over the next 12 months.

Bell Potter notes that there are a number of key data points that are improving, which it appears to believe could be a sign that the company is over the worst of its issues.

This includes Australia-China exports, which it classes as a Daigou proxy. The broker points out that volumes have demonstrated their first year on year increase since May 2019 and were up 56% year on year in May 2021. Furthermore, sequentially, four of the last five months have experienced month on month growth, with May 2021 the highest reading since June 2020.

In addition to this, it notes that while Chinese infant formula imports from the EU, New Zealand and Australia are still in decline year on year, volumes look to have formed a bottom in recent months. Bell Potter notes that volumes were recently up 29% from January 2021 lows, with three consecutive month on month gains.

It concluded: “Our analysis of the data is beginning to show: (1) activity returning to CBEC ordering activity the past two months; (2) continued resilience in China offline infill activity for A2M; and (3) a bottoming of IMF exports to China from all major exporting regions, with a similar pattern emerging in our Daigou proxy shipments (AUS-China shipments). Of surprise is the YOY gain in Aus-China shipments in May’21, noting easier YOY comparisons.”

In light of the above, the broker believes the A2 Milk share price is in the buy zone right now.

The post Top broker tips A2 Milk (ASX:A2M) share price to jump 37% 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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Yesterday The Motley Fool took a look at the 3 best-performing ASX travel shares from the 2021 financial year. Today we examine the other end of the spectrum to see if there’s any value.

With the industry devastated last year after the coronavirus first struck, investors have flocked back to ASX travel shares in the past 12 months as a recovery play.

But these 3 companies, as the worst-returning travel stocks from the All Ordinaries Index (ASX: XAO), still struggled:

• Helloworld Travel Ltd (ASX: HLO): down 29% in the 2021 financial year
• Regional Express Holdings Ltd (ASX: REX): up 3.04%
• Sydney Airport Holdings Pty Ltd (ASX: SYD): up 3.39%

Who knows exactly when, but travel will eventually return. So is there a buying opportunity now for these unloved shares?

Helloworld can’t say hello to anyone at the moment

Bell Direct senior market analyst Jessica Amir told The Motley Fool that closed international and state borders mean travel shares are still doing it tough.

“Plus the extra selling pressure for this cohort of stocks is coming from tax loss selling, where investors sell down assets that underperformed so they can minimise their tax,” she said.

“But don’t be fooled — selling might not stop come 1 July. These stocks will likely face selling pressure until borders open.”

And these are exactly the forces that will likely keep travel agent Helloworld down, added Amir.

“Helloworld Travel shares are trading 38% lower this year. And fell 48% last year.”

Rex is struggling to break even

According to Amir, Regional Express shares have plunged 42% this year but that was after an outstanding run in 2020, rising 75%.

“Rex’s capacity was 35% of pre-COVID levels and it recently announced it will be entering other monopoly airports and flight paths, after it opened up new routes to Coffs Harbour and Port Macquarie,” she said.

“We mustn’t forget Rex is not just Australia’s largest independent regional airline but also has two pilot academies, which provide income for the group.”

But all those upsides apparently aren’t enough to help the company turn a profit.

“Rex [was] initially expecting to recover from a loss this year but following recent outbreaks, Rex advised it’s now expecting a loss of $15 million,” said Amir.

“As cash flow is constrained, its shares are also trending low. From a technical perspective, REX shares are in a technical downtrend, on a daily, weekly and monthly basis.”

Sydney Airport could be good value

Amir is not a fan of the shares for Australia’s biggest gateway to the world.

“Its shares are down 11% this year. Last year was also a bad year — SYD shares fell 24%,” she said.

“From a technical perspective as well, SYD shares are being pressured lower, mimicking its cash flow, which is being squeezed by travel restrictions.”

However, other experts are tempted by the current low share price, considering it a bargain buy.

“Well, there’s a lot of potential value there, isn’t there? It’s interesting,” Watermark Funds Management chief investment officer Justin Braitling told Livewire.

“International travel will come back. It’s an incredibly valuable asset.”

Braitling pointed to the listed European airports, which are located in countries that are ahead of Australia on COVID vaccination rates.

“Many of them are not far off their all-time highs. Obviously, they had a much worse experience in Europe than we have here in Australia in terms of travel,” he said. 

“In 3 to 5 years’ time, we’ll look back and volumes will have recovered completely. And there’s no reason why that asset shouldn’t trade where it was before the health crisis. So that’s a buy.”

Better options to bet on travel recovery

According to Amir, there are plenty of ASX travel shares available for investors willing to show patience.

“There could be some great long-term potential gold mine investments. That being said, it’s paramount to pick your investments wisely,” she said.

“Look at favouring those companies that have extensive cost reduction programs and have liquidity from capital raisings so they can weather the storm.”

Amir picked Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT) as two examples of businesses that have done this.

“Qantas is also the preferred airline in returning international Australia’s back home,” she said. 

“Plus Qantas’ business is complemented by its highly profitable loyalty (frequent flyer) program.”

The post 3 worst ASX travel shares of financial year 2021 appeared first on The Motley Fool Australia.

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• ASX 200 dips, Collins Foods drops, Kathmandu falls
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Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited and Sydney Airport Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. The Motley Fool Australia has recommended Flight Centre Travel 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 wanting to boost your portfolio with some high yield dividend shares, then the two listed below could be worth considering.

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

BHP Group Ltd (ASX: BHP)

If you’re not opposed to investing in the resources sector, then the Big Australian could be a top option. Especially given its high quality, low cost, and diverse operations and favourable commodity prices.

As readers will no doubt be aware, the iron ore price has been on fire over the last 12 months and is currently trading within sight of record highs. In addition to this, oil prices have just hit three-year highs and have been tipped to keep climbing.

All in all, based on BHP’s cost guidance, it is generating significant free cash flow based on current spot prices. And given the strength of its balance sheet, this bodes well for dividends in the near term.

Analysts at Macquarie are very positive on BHP and are expecting a record second half result in August. The broker currently has an outperform rating and $63.00 price target on its shares.

As for dividends, it is forecasting dividends of ~$4.05 per share in FY 2021 and ~$3.68 per share in FY 2022. Based on the current BHP share price of $48.22, this will mean fully franked yields of 8.4% and 7.6% over the next two years.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Supercheap Auto brands.

Super Retail’s businesses have been performing particularly positively in FY 2021 thanks to a favourable redirection in consumer spending. With international travel off the cards, consumers have been spending heavily in other categories, leading to stellar sales and profit growth.

For example, during the first 44 weeks of FY 2021, the company’s like for like sales were up 28% over the prior corresponding period. In addition, Super Retail’s elevated gross margin remained stable since the end of the first half.

Goldman Sachs is positive on Super Retail and is tipping it to reward shareholders with a special dividend this year. It is forecasting an 84 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price of $12.74, this represents a 6.6% yield.

Goldman Sachs currently has a buy rating and $15.00 price target on its shares.

The post These high yield ASX dividend shares could be 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 Super Retail 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) started the new financial year in a disappointing fashion. The benchmark index fell 0.6% to 7,265.6 points.

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

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher this morning. This follows a solid night on Wall Street which saw the Dow Jones rise 0.4%, the S&P 500 climb 0.5%, and the Nasdaq push 0.1% higher.

Oil prices storm higher

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong day after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$74.96 a barrel and the Brent crude oil price is up 1.2% to US$75.51 a barrel. Demand hopes have driven oil prices to three-year highs.

IDP Education acquisition

The IDP Education Ltd (ASX: IEL) share price will be one to watch on Friday after announcing a new acquisition. The language testing company has entered into a binding agreement to acquire 100% of the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds on a debt free, cash free basis. The company will fund the acquisition from existing cash and debt. Post transaction, IDP Education will be the sole distributor of IELTS in the key Indian market.

Lendlease remains a buy

The Lendlease Group (ASX: LLC) share price is still in the buy zone for Goldman Sachs despite its guidance downgrade. According to a note, the broker has retained its conviction buy rating but trimmed its price target to $15.53. It said: “Although LLC now expects to fall well short of consensus and GS expectations for FY21E, today’s market update provided confirmation that investor demand for its urban renewal development product remains strong.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week on a high after the gold price pushed higher. According to CNBC, the spot gold price is up 0.3% to US$1,776.70 an ounce. Traders were buying the precious metal amid concerns over the Delta variant of COVID-19.

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

More reading

• ASX 200 drops, Zip rises, Cettire up
• The 5 worst performing shares of the ASX 200 in FY21 revealed
• Here are the 3 most traded ASX 200 shares on the market today
• IDP Education (ASX:IEL) share price on watch after announcing major acquisition
• Why Lendlease, Marley Spoon, Reece, & Woolworths shares are sinking

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

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The S&P/ASX 200 Index (ASX: XJO) dropped by 0.7% today to 7,266 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

The Zip share price rose by 1.7% today after the announcement of a partnership with Propell Holdings Ltd (ASX: PHL).

It was announced that Zip would launch as the first buy now, pay later product on the Propell platform.

Propell said that a key strategy for the business is to strengthen its transactional product to allow customers to accept all standard payment types from their end customers, including credit cards, debit and now BNPL through the Propell platform.

Propell said this provides greater flexibility in getting paid so they improve the user experience with their end customers, and improve their own cashflow.

The CEO of Propell, Michael Davidson, said:

I am delighted to be announcing our first BNPL product in partnership with Zip which we anticipate will attract new customers to the platform and underpin improved margins in our transactions business. A key focus at Propell, is to help our customers to better manage their finances and in particular their cashflow, and the Zip BNPL product will immediately enable these improvements with their up-front payments solution.

Cettire Ltd (ASX: CTT)

The Cettire share price rose around 5% after announcing that it was expanding into children’s wear segment through a new website vertical.

The company currently has access to more than 6,000 children’s wear products and will seek to expand its range over time.

Cettire founder and CEO Dean Mintz said:

The children’s wear category is an attractive adjacent segment in the luxury appeal industry. We are excited by the expansion of Cettire into children’s wear and see excellent growth prospects for this category.

Having rapidly scaled Cettire over the past three years, our expansion into children’s wear is a natural expansion of our range. It increases Cettire’s addressable market, whilst also providing scope to grow share of spend with existing customers and introduce new potential customers to Cettire’s online luxury goods platform. We continue to assess further opportunities to expand our addressable market and our expansion into children’s wear highlights the inherent scalability of our business model, which does not require inventory investment.

The children’s wear range is now live, with shipping available to more than 50 markets.

REA Group Limited (ASX: REA)

REA announced that it has completed the acquisition of Mortgage Choice Limited (ASX: MOC)

The takeover the ASX 200 share of $1.95 per share translates into an enterprise value of approximately $244 million.

REA Group CEO Owen Wilson said:

The completion of the Mortgage Choice acquisition represents an exciting milestone for our combined businesses. We’re extremely pleased to welcome the Mortgage Choice team into REA. Together, we look forward to accelerating REA’s financial services strategy to become a leading player in the home loan market.

The post ASX 200 drops, Zip rises, Cettire up appeared first on The Motley Fool Australia.

More reading

• The 5 worst performing shares of the ASX 200 in FY21 revealed
• Here are the 3 most traded ASX 200 shares on the market today
• Domino’s Pizza (ASX:DMP) shares fall 3%. What’s going on?
• Why is the A2 Milk (ASX:A2M) share price up 3% today?
• Meet the best performing ASX 200 shares of FY21. Are yours on the list?

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 Cettire Limited and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cettire Limited and REA 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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Are you looking to add some dividend shares to your portfolio? Then take a look at the buy-rated ones listed below.

Here’s why they could be top options for income investors this week:

Fortescue Metals Group Limited (ASX: FMG)

The first ASX dividend share to look at is Fortescue. It is one of the world’s leading iron ore producers with quality operations in the Pilbara region of Western Australia.

The mining giant is currently benefiting greatly from sky high prices that are being commanded for the steel making ingredient. For example, at present, the spot iron ore price is trading at ~US$218 a tonne, which compares very favourably to the company’s cash costs of US$13.50 to US$14.00 per wet metric tonne.

And even though Fortescue’s lower grade ore doesn’t command as high a price, it is still generating material free cash flow right now. And given management’s track record of returning funds to shareholders, this bodes well for dividends in the near term.

Macquarie is positive on the company is forecasting big dividends in the near term. It expects Fortescue to pay dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. Based on the latest Fortescue share price of $23.63, this will mean fully franked yields of 14.6% and 10.4%, respectively.

Macquarie has an outperform rating and $27.00 price target on the miner’s shares.

Westpac Banking Corp (ASX: WBC)

Another dividend share to look at is Westpac. After a few tough years, Australia’s oldest bank looks well-placed for a return to growth. This is thanks to improving trading conditions, the simplification of its business, a booming housing market, and cost cutting.

In respect to the latter, Westpac is aiming to reduce its costs down to $8 billion from $12.7 billion by 2024. If it can combine this with top line growth, then it will bode very well for earnings and dividend growth over the next three years.

Analysts at Morgan Stanley are positive on Westpac and have recently retained their buy rating and $29.20 price target on the company’s shares. The broker is also 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 $25.65, this will mean yields of 4.6% and 4.9%, respectively.

The post 2 ASX 200 dividend shares rated 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 Wesfarmers 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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