Tag: Motley Fool

  • Why the Austal (ASX:ASB) share price will be on watch today

    A ship captain looking through a pair of binoculars.

    The Austal Limited (ASX: ASB) share price will be one to watch today. This comes after the shipbuilder announced an update late Friday after market close in relation to its potential criminal infringements of the Corporations Act.

    Austal shares closed last week at $2.06.

    What did Austal announce?

    It could be an interesting day for Austal shares as investors had the weekend to digest the company’s latest statement.

    According to the release, Austal has received official word from ASIC regarding its criminal investigation into the company. ASIC stands for Australian Securities and Investment Commission, an independent government body that regulates markets, financial services and consumer credit.

    In conclusion of the investigation, ASIC has decided not to pursue any criminal action against Austal. This follows previous research into the company’s financial performance between 1 January 2009 to 28 August 2017.

    While the outcome is pleasing, Austal did further announce that civil proceedings issued by ASIC are still standing. This relates to market disclosures about Austal’s Littoral Combat Ship (LCS) program before July 2016.

    It is alleged that Austal and its former CEO David Singleton failed to notify the market of an earnings write back.

    The company noted that it is still considering a response in this matter.

    Austal CEO Paddy Gregg commented:

    There is a sense of relief that ASIC has investigated the matter and decided not to pursue criminal charges around Austal’s previous market disclosures, however we still must deal with the civil action that ASIC has previously initiated.

    About the Austal share price

    Over the past 12 months, Austal shares have continued their downward trajectory, slipping by around 36%. Year to date, the Austal share price also hasn’t fared well, down almost 23% since the start of 2021. The company hit a multi-year low of $1.98 in late February and is near the bottom of its 52-week range.

    On valuation grounds, Austal presides a market capitalisation of roughly $740 million, with approximately 359 million shares on its registry.

    The post Why the Austal (ASX:ASB) share price will be on watch today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Austal right now?

    Before you consider Austal, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Austal wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

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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. owns shares of and has recommended Austal Limited. 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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  • Zip (ASX:Z1P) and this ASX share could have huge growth runways

    Investor riding a rocket blasting off over a share price chart

    When looking at long term investment options, it could be a good idea to look for companies that have long runways for growth.

    With that in mind, listed below are two ASX shares which have been tipped to grow strongly over the next decade. Here’s what you need to know about them:

    PointsBet Holdings Ltd (ASX: PBH)

    PointsBet is a rapidly growing sports betting operator and iGaming provider, offering innovative sports and racing betting products and services direct to clients via its scalable cloud-based technology platform.

    Since launching its first product in 2017, it has been onwards and upwards for PointsBet. Pleasingly, this trend is expected to continue for some time to come thanks to the growing popularity of mobile sports betting and its lucrative US operations.

    In respect to the latter, Goldman Sachs notes that the US sports betting market is forecast to grow at a compound annual growth rate of 40% out to 2033. At that point, the broker estimates that the US market will be worth US$39 billion a year.

    Goldman Sachs currently has a buy rating and $17.20 price target on its shares. This compares to the latest PointsBet share price of $13.50.

    Zip Co Ltd (ASX: Z1P)

    Another ASX growth share that has been tipped for strong long term growth is Zip. It is of course one of the world’s leading buy now pay later (BNPL) providers with operations across several continents.

    This includes in the massive US market with its QuadPay business, where management notes that it has a $5 trillion market opportunity. In addition to this, the company has recently acquired its way into the European and Asian markets. Which, combined with its UK business, gives Zip a huge runway for growth. Especially given how the payment method us continuing to grow in popularity with consumers and merchants globally.

    Citi currently has a buy rating and $10.90 price target on the company’s shares. This compares to the latest Zip share price of $8.23.

    The post Zip (ASX:Z1P) and this ASX share could have huge growth runways appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Zip right now?

    Before you consider Zip, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of May 24th 2021

    More reading

    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 Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • 2 blue chip ASX dividend shares with big yields

    ASX dividend shares represented by cash in jeans back pocket

    Investors that are interested in boosting their income portfolio with some blue chip dividend shares might want to take a look at the ones listed below.

    Here’s what you need to know about these top blue chips:

    Fortescue Metals Group Limited (ASX: FMG)

    The first blue chip ASX dividend share to look at is Fortescue. Through its operations across the Pilbara region in Western Australia, Fortescue is one of the world’s largest producers of iron ore. And with the spot iron ore price currently fetching US$216 a tonne, this certainly is a great time for Fortescue.

    Especially when you consider that its C1 costs guidance for FY 2021 is US$13.50 to US$14.00 per wet metric tonne. And while its lower grade product won’t command the full spot iron ore price, it will still be generating significant free cash flow on each tonne of production.

    It is for this reason that analysts at Macquarie are expecting some big dividends in the near term. The broker is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. With the Fortescue share price currently fetching $22.92, this will mean massive dividend yields of 15% and 10.7%, respectively.

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

    Suncorp Group Ltd (ASX: SUN)

    Another ASX dividend share to look at is Suncorp. The banking and insurance giant has been performing very positively in FY 2021. This has been driven by Australia’s strong economic recovery from the pandemic.

    Analysts at Citi are expecting this improved performance to lead to generous dividends in the near term. In fact, the broker suspects a special dividend could be paid in FY 2021.

    Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022. So, with the Suncorp share price currently trading at $11.01, this implies fully franked yields of 5.5% and 5.2%, respectively, over the next two years.

    Citi currently has a buy rating and $11.80 price target on its shares.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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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  • How one ASX investor turned $156k into $12 million

    A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends

    Picking a 10-bagger is what all investors dream of. How good would it be if you can turn $10 into $100?

    It’s like you won the lottery. And some people achieve this with ASX shares over many years of playing the long game.

    But one punter managed to do even better, turning $156,000 into $12 million in just 3 years on the ASX. That’s a 77-bagger!

    Marcus Today director Marcus Padley told his podcast listeners that one of his subscribers wrote to him this month.

    The investor recalled that he had met Padley at an investment seminar in 2018, where they talked about lithium stocks.

    “You said there’s a lot to be said for focusing on ONE company alone and know everything there is to know,” the email to Padley said.

    “I did that.”

    That strategy has worked out pretty well for the investor.

    He initially bought $156,000 of Kidman Resources Limited. The mining company is no longer listed after it was acquired by Wesfarmers Ltd (ASX: WES) in late 2019.

    The investor sold out for $800,000, which was a nice 413% return.

    “I was supposed to pay off debt… but put into Liontown Resources Limited (ASX: LTR) instead,” the investor wrote.

    “That investment hit $12 million yesterday.”

    Indeed Liontown shares have gone from 4 cents in May 2019 to now 64 cents. That’s a 1500% gain.

    The ‘one stock portfolio’ method

    Putting massive amounts of money into just one stock would frighten most investors. But Padley has long been an advocate of the “one stock portfolio”.

    He believes knowing nothing about 20 companies is much worse than getting to know one business intimately.

    “If you were to buy one stock, you’re going to watch every move. You’ll go to every company presentation, get to know the CEO, get to know the other shareholders… You’re going to watch the drivers and pick up on anything that’s relevant to that stock.”

    Padley reckons with so much at stake, the investor will be more risk-averse, not less.

    “You’re going to be sensitive to bad news, you’re going to be in touch with it everyday,” he said.

    “So with one stock it’s not necessarily more risky at all, or more short-term. It’s actually less risky because you’ve got your head in the game and you’ve only got one stock to focus on after all.”

    As for the punter, he sent Padley a photo of him posing with the chief executive of his money maker.

    “I can tell you his licence plate number is ‘LTR’ — Liontown,” said Padley.

    “I don’t think I’d ever get excited enough to have ‘the NAB’ on my licence plate, I have to say.”

    According to Padley, diversification is a false idol that’s been proselytised by “lazy” financial advisors.

    “In the remote wilderness of portfolio construction, we have a lot of gurus — but there is one religion: it’s called diversification,” he said.

    “It underperforms in the good times, outperforms in the bad times, but it still doesn’t perform anyway.”

    The post How one ASX investor turned $156k into $12 million appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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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 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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  • 5 things to watch on the ASX 200 on Monday

    Investor sitting in front of multiple screens watching share prices

    On Friday the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.45% to 7,308 points.

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

    ASX 200 poised to edge higher

    The Australian share market is expected to start the week slightly higher. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% higher. This follows a reasonably positive end to the week on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 0.3%, and the Nasdaq edge slightly lower.

    Oil prices rebound

    It could be a positive start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1% to US$74.05 a barrel and the Brent crude oil price rose 0.8% to US$76.18 a barrel. Strong demand led to oil prices recording their fifth weekly gain.

    Metcash results

    The Metcash Limited (ASX: MTS) share price will be on watch today when it hands in its full year results. According to a note out of Goldman Sachs, its analysts are expecting the wholesale distributor to record an 8.2% increase in revenue to $14,088 million. This is expected to be driven by Food sales and its hardware business, offsetting the loss of two major supply contracts. On the bottom line, Goldman is forecasting underlying EBIT of $432.3 million.

    Gold price slightly higher

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price edged higher on Friday night. According to CNBC, the spot gold price rose 0.1% to US$1,777.80 an ounce. This meant the precious metal recorded a small weekly gain.

    Costa returns

    The Costa Group Holdings Ltd (ASX: CGC) share price is due to return from its trading halt this morning. The horticulture company requested the halt last week so it could raise funds to acquire 2PH Farms for $200 million. Credit Suisse is a fan of its plan. Its analysts believe 2PH is an excellent business, has significant strategic value, and comes at a fair price.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 COSTA GRP FPO. 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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  • 2 top ASX dividend shares for income investors next week

    Rolled up notes of Australia dollars from $5 to $100 notes

    If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

    Here’s why analysts have given them buy ratings:

    Super Retail Group Ltd (ASX: SUL)

    The first ASX dividend share to look at is Super Retail. It is the retail conglomerate behind popular brands BCF, Macpac, Rebel, and Super Cheap Auto.

    Thanks to a redirection in consumer spending during the pandemic, Super Retail has been experiencing very strong sales growth this year. For example, a recent trading update revealed that Super Retail achieved like-for-like sales growth of 28% over the first 44 weeks of FY 2021. Positively, management also revealed that its gross margin had remained steady since the end of the half. At that point, it was very strong and underpinning even quicker profit growth.

    Goldman Sachs believes the Super Retail share price is in the buy zone and is expecting a very generous dividend in FY 2021. It currently has a buy rating and $15.00 price target on its shares and is forecasting an 84 cents per share fully franked dividend. Based on the current Super Retail share price of $12.95, this represents a 6.5% yield.

    Transurban Group (ASX: TCL)

    Another ASX dividend share to consider is Transurban. It is one of the world’s leading toll road operators with key roads in Melbourne, Sydney and Brisbane, as well as in Greater Washington, United States and Montreal, Canada. Transurban also considers itself to be a technology company as well. It notes that it researches and develops innovative tolling and transport technology that makes travel easier for everyone.

    While the pandemic has impacted traffic volumes, particularly on roads connecting to airports, there has been a notable improvement over recent months. This is likely to continue improving as vaccines rollout and people become more mobile again.

    Ord Minnett is confident in the company’s recovery and expects its distribution to rebound strongly in FY 2022. The broker is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. This will mean yields of 2.5% and 3..9%, respectively, over the next two years.

    Ord Minnett currently has a buy rating and $16.00 price target on the company’s shares.

    The post 2 top ASX dividend shares for income investors next week appeared first on The Motley Fool Australia.

    These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

    Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

    Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

    Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

    Returns As of 15th February 2021

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    Motley Fool contributor James Mickleboro 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 Australia owns shares of Transurban Group. 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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  • 2 exciting ASX tech shares that are highly rated

    Global technology shares

    If you’re looking for some exposure to the tech sector, then you might want to look at the shares listed below.

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

    PointsBet Holdings Ltd (ASX: PBH)

    The first tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services in the ANZ and US markets via its scalable cloud-based platform.

    It is the company’s US operations that are getting the market most excited. Thanks to changes in regulations in the lucrative market and the company’s partnerships, PointsBet appears well-placed to capture market share and grow its sales over the next decade.

    One of those partnerships is with the country’s largest sports broadcaster NBCUniversal. This is a game-changer for PointsBet and gets its brand in front of NBC’s 184 million viewers.

    Goldman Sachs is a big fan of the company. It currently has a buy rating and $17.20 price target on PointsBet’s shares. The broker notes that the US sports betting and iGaming market is forecast to be worth US$53 billion at maturity. Goldman believes this gives it a very long runway for growth, particularly given its position as the number four/five player in the key market.

    WiseTech Global Ltd (ASX: WTC)

    Another ASX tech share to look at is WiseTech Global. It is the logistics solutions company behind the popular CargoWise One platform. This platform allows users to execute complex logistics transactions and manage freight operations from a single, easy to use system.

    WiseTech Global has been experiencing strong demand for its platform from many of the largest logistics companies in the world. Combined with a host of bolt-on acquisitions in recent years to strengthen its offering, this has underpinned very strong revenue and earnings growth.

    Pleasingly, with its customers now the ones making acquisitions, WiseTech Global has been benefiting from increasing usage from existing customers as they expand. And with this trend expected to continue, it bodes well for the company’s growth in the coming years.

    Morgan Stanley is positive on WiseTech Global. Its analysts currently have an overweight rating and $35.00 price target on its shares.

    The post 2 exciting ASX tech shares that are highly rated appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 Pointsbet Holdings Ltd and WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • These ASX dividend shares keep giving investors a pay rise

    piles of coins increasing in height with miniature piggy banks on top

    There are a few ASX dividend shares that have kept increasing their dividends for shareholders for many years in a row.

    Dividends aren’t guaranteed. They can be reduced or halted altogether – like we saw during the COVID-19-impacted year of 2020.

    But these two have been growing the dividend for some time:

    Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

    This business, also known

    as Soul Patts, is a diversified investment conglomerate. It has the longest dividend record on the ASX when it comes to dividend increases. Soul Patts has increased its dividend every year since 2000.

    The investment conglomerate has also paid a dividend every year since it listed in 1903.

    It has a diversified portfolio of a number of different ASX shares. Some of its larger investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Tuas Ltd (ASX: TUA), Bki Investment Co Ltd (ASX: BKI), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Bailador Technology Investments Ltd (ASX: BTI).

    The ASX dividend share also has an unlisted portfolio of assets and businesses in sectors like resources, financial services, agriculture and swimming schools.

    It’s this diversified portfolio that pays cashflow up to Soul Patts each year which then allows the business to pay a lot of it out to shareholders, with the rest retained for further investments.

    Soul Patts recently launched a takeover offer for Milton Corporation Limited (ASX: MLT). Management believe that this will unlock more unique investments for Soul Patts, including private equity and property.

    At the current Soul Patts share price, it has a fully franked dividend yield of 1.85%.

    Domino’s Pizza Enterprises Ltd. (ASX: DMP)

    Domino’s is one of the largest food businesses on the ASX. It has a global network of stores in ANZ, Europe and Japan. Indeed, the Japanese market recently saw the 800th store opening.

    These stores have been generating same store sales growth for a number of years, pushing profit higher for the ASX dividend share.

    The increasing scale of the ASX dividend share is seeing profit rise faster than revenue. In the first six months of FY21, network sales went up 16.5% to $1.84 billion (with online sales increasing 25.4% to $1.42 billion). But earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.8% to $218.7 million, earnings before interest and tax (EBIT) went up 32.3% to $153 million, underlying net profit grew 32.8% to $96.2 million and free cashflow surged 50.3% to $124.4 million.  

    That profit growth allowed Domino’s to fund a 32.5% increase in the interim dividend to 88.4 cents per share.

    The growing size of Domino’s has allowed the business to keep growing profit and the dividend.

    By 2033, Domino’s is looking to grow its overall network to at least 5,550 stores (or more, which I’ll get to in a moment). The aim is for Europe to have 2,850 stores, ANZ will have 1,200 stores and Japan will have 1,500 stores.

    Domino’s also recently announced the acquisition of Domino’s Taiwan where there are currently 157 stores and it has plans for more than 400 stores over the long-term. Domino’s increased its future store count goal in Asia from 1,500 stores to 1,900 stores by somewhere between 2030 to 2032.

    Domino’s has a partially franked dividend yield of 1.2%.

    The post These ASX dividend shares keep giving investors a pay rise appeared first on The Motley Fool Australia.

    These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

    Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

    Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

    Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

    Returns As of 15th February 2021

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    Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bailador Technology Investments Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited and 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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  • 2 buy-rated small cap ASX shares

    guy helping girl invest in shares and dividends

    At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

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

    Hipages Group Holdings Ltd (ASX: HPG)

    The first small cap to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

    The company’s platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals. It also offers tradies a solution to run their business from, cutting down on general administration duties.

    Goldman Sachs is a big fan of the company and believes it is well-placed for growth over the next decade. The broker notes that Hipages is building a compelling marketplace, with a healthy balance between consumers and tradies. It has also been pleased with recent app download data, website visits, and job ad growth.

    It expects more of the same in the future and sees scope for Hipages to grow its share of industry advertising spend from 5% to upwards of 60% eventually.

    Goldman currently has a buy rating and $3.40 price target on its shares.

    SILK Laser Australia Limited (ASX: SLA)

    Another small cap ASX share to watch is SILK Laser. It is a laser, skin care, and cosmetic injections company.

    Thanks to increasing demand and store network expansion, SILK has been growing at a strong rate in FY 2021. For example, during the first half, SILK reported a 62% increase in network sales to $44.9 million and a 305% increase in net profit to $4.7 million.

    At that point, management advised that it intended to grow its network by 6 to 10 new clinics per annum from 60 up to a target of approximately 150 clinics. However, it has just accelerated its network growth by signing an agreement to acquire Australian Skin Clinics in Australia and The Cosmetic Clinic in New Zealand for $47 million. This adds a total of 56 more clinics to its network, taking its total to 117.

    Management notes that it also solidifies its number two market position and opens the company up to new markets.

    Analysts at Ord Minnett are positive on the company and currently have a buy rating and $10.69 price target on its shares.

    The post 2 buy-rated small cap ASX shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

    More reading

    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 SILK Laser Australia 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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  • Top brokers name 3 ASX shares to buy next week

    finger pressing red button on keyboard labelled Buy

    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:

    Cochlear Limited (ASX: COH)

    According to a note out of Macquarie, its analysts have retained their outperform rating and increased the price target on this hearing solutions company’s shares to $264.00. The broker made the move after a survey of US audiologists revealed that patient numbers were increasing on pre-COVID levels. In addition to this, audiologists spoke positively about its products, ranking them highest for both adult and paediatric patients. The Cochlear share price ended the week at $248.78.

    Costa Group Holdings Ltd (ASX: CGC)

    A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $4.15 price target on this horticulture company’s shares. According to the note, the broker is pleased with Costa’s plan to acquire 2PH Farms. It believes it is an excellent business, has significant strategic value, and comes at a fair price. The Costa price last traded at $3.40.

    Westpac Banking Corp (ASX: WBC)

    Analysts at Citi have retained their buy rating and $29.50 price target on this banking giant’s shares. This follows news that Westpac will not be offloading its New Zealand banking business. It feels this reflects the complexities of divesting from a liquidity and capital perspective. Based on the alternatives, Citi appears to believe this was the correct decision and suggests that this is the end of the matter now. Outside this, Citi notes that Westpac is aiming to make significant cost reductions and expects this to drive improvements in its return on equity. The Westpac share price ended the week at $25.89.

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

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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. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Cochlear 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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