Tag: Motley Fool

It certainly has been a great month for the Afterpay Ltd (ASX: APT) share price. Since the start of June, the buy now pay later (BNPL) provider’s shares have rallied an impressive 42% higher.

However, the same cannot be said for the Openpay Group Ltd (ASX: OPY) share price. During the same period, this BNPL provider’s shares have lost 2.5% of their value.

This means the Openpay share price is now down 35% since the start of the year.

Is the Openpay share price good value?

According to a note out of Shaw and Partners, its analysts believe the recent weakness in the Openpay share price is a buying opportunity for investors. Particularly given its recent announcement of a key acquisition in the UK market.

Shaw and Partners has a buy rating and $4.00 price target on the company’s shares.

Based on the latest Openpay share price of $1.57, this implies potential upside of 155% over the next 12 months.

What did the broker say?

Commenting on the acquisition, the broker said: “A very positive and significant announcement for OPY, indeed a transformational one in one of the world’s largest markets (UK), given it accelerates its position and opportunity in this market (effectively triples its UK TTV, increases customer numbers by >64%, accelerates the path to profitability and generates high returns and yields), and indeed secures its position as a major BNPL player in the UK, with the leading Auto BNPL provider.”

“It also potentially unlocks some synergies, in addition to pursuing adjacent opportunities in other verticals (e.g. professional services). It also further reinforces the differentiated offering that OPY provides to its homogenous “pay-in’4” peers (longer plans, higher plan values, greater plan flexibility, non-Retail focus, etc.).”

In addition to this, Shaw and Partners once again highlights that the Openpay share price is trading at a significant discount to its BNPL peers.

“OPY trades at a significant – and attractive – 41% discount to BNPL peers on an FY22 EV/Sales multiple of 5.0x vs. combined 8.6x (consensus),” it concluded.

The post Broker tips Openpay (ASX:OPY) share price to rocket 150% higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 jumps, Soul Patts rises, Openpay soars
• Why Bank of Queensland, IGO, Milton, & Openpay are surging higher
• Openpay (ASX:OPY) share price shoots higher on UK acquisition
• Here are 3 ASX shares with high debt levels
• The Zip (ASX:Z1P) share price slides 12% in May despite global expansion

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. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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/3jjgT90

June has been a busy month for Wide Open Agriculture Ltd (ASX: WOA) and its share price is reacting favourably. At the time of writing, the Wide Open Agriculture share price has gained 19% over the past 30 days to trade for 85 cents.

Since this time last month, the market has heard a plethora of price-sensitive news from the food and agriculture company. Let’s take a look.

The month that’s been for Wide Open Agriculture

This month, the company has released news about 2 of its key products. The company has made headwinds with its modified lupin protein and its OatUP oat milk product.

Modified lupin protein

On 27 May, Wide Open Agriculture announced its up-and-coming modified lupin protein had been made into several early-stage food and drink prototypes.

The company found its lupin protein can be used in food items such as noodles and mock meats. It also forms a gel-like constancy which the company believes would serve to make plant-based cheeses, yogurts, tofu, and mayonnaise. Additionally, it can be a soluble power, which the company plans to add to its OatUp product to create a new line of high-protein oat milk.

The company has already made protein balls from the technology. They are for sale on the company’s Dirty Clean Food website.

The news saw the Wide Open Agriculture share price finish the day 15% higher than its previous session.

The company announced on 17 June it will build a manufacturing facility in Western Australia to produce lupin protein-based food products.

Despite the good news, the company’s share price fell 6%.

OatUP

The company announced on 9 July OatUP’s distribution was expanding after strong market uptake.

According to the company, OatUP is highly sought after by cafes, consumers, and retailers in Western Australia. It launched into South Australia as a result.

The company is also selling OatUP direct to consumers online, as well as planning to launch the product in South East Asia.

OatUp is the world’s first regenerative and carbon neutral oat milk.  

The company’s shares gained 2% on the back of the announcement.

Finally, Wide Open Agriculture told the market OatUP will be distributed in Victoria and New South Wales. According to the company, the oat milk product will be stocked in The Market Grocer stores.

The Wide Open Agriculture share price gained 8% on the news.

Wide Open Agriculture share price snapshot

It hasn’t been a great year for the Wide Open Agriculture share price on the ASX – it’s fallen 4.5% year to date.

However, it has gained 107% since this time last year.

The company has a market capitalisation of around $78 million with approximately 107 million shares outstanding.

The post The Wide Open Agriculture (ASX:WOA) share price gained 19% in a month appeared first on The Motley Fool Australia.

More reading

• Why the Wide Open Agriculture (ASX:WOA) share price is racing 12% higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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

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

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

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

PayPal (NASDAQ: PYPL) just announced that it will raise its processing fees for U.S. merchants. Starting on Aug. 2, the rate for each online PayPal or Venmo transaction will rise to 3.49% plus $0.49 — compared to its current rate of 2.9% plus $0.30 for most online transactions.

However, PayPal’s fees for in-person PayPal and Venmo QR code transactions will remain unchanged at 1.9% + $0.10 for transactions over $10, and 2.4% plus $0.05 for transactions under $10.

PayPal’s stock rallied after the announcement, and several analysts lauded the decision as a sign of its pricing power. But could the decision backfire and leave it more exposed to competition?

Why did PayPal raise its processing fees?

PayPal owns one of the world’s largest online payment networks. It has a presence in 202 countries and processes payments in 25 currencies. Last quarter, its number of active accounts rose 21% year over year to 392 million as its total payment volume surged 50%.

PayPal likely believes that massive market presence, along with the stickiness of its services for merchants, gives it pricing power against competitors like Square (NYSE: SQ), Stripe, Apple (NASDAQ: AAPL) Pay, and Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Pay.

Moreover, PayPal claims consumers “who choose PayPal as a payment method are 60% more likely to convert than consumers who do not choose PayPal as a payment method.” It also claims consumers are “nearly three times more likely to complete their purchase when PayPal is available at checkout.”

PayPal’s growth rates support those claims. Its revenue and adjusted earnings rose 21% and 31%, respectively, in 2020 as merchants and consumers used more digital payments throughout the pandemic.

PayPal doesn’t anticipate a significant slowdown after the pandemic ends. It expects its revenue and adjusted earnings to grow 20% and 21%, respectively, this year, and for its active accounts to climb to 430 million. In other words, PayPal wants to raise its rates while it’s still firing on all cylinders.

But could its price hike backfire?

However, PayPal’s new rate of 3.49% plus $0.49 for online transactions makes it the priciest option for most merchants. Square’s e-commerce API, which enables businesses to integrate its payment services into their websites, still charges 2.9% plus $0.30 per transaction. Stripe charges the same rate.

Apple Pay and Google Pay don’t charge any merchant fees, since they’re considered “card present” transactions, but merchants still need to pay the underlying credit card’s swipe fee of about 1.3%-3.5%.

PayPal, Square, and Stripe cover those swipe fees with their fees. That solution can be simpler and more economical than dealing with varying swipe fees. These three competitors also have unique strengths. Square serves fewer countries and merchants than PayPal, but its Cash App has been growing faster than PayPal’s Venmo in the peer-to-peer payments market. That’s probably why PayPal didn’t raise its Venmo fees for in-person payments — which remain comparable or lower than Square’s Cash App’s fees. Stripe’s code is easily customized for individual apps, making it an attractive option for companies like Lyft and Pinterest.

Apple and Google, meanwhile, can both leverage their dominance of the smartphone OS market to promote their own payment solutions. Apple Pay’s number of activated users rose from 441 million to 507 million between September 2019 and September 2020, according to Loup Ventures. Google Pay serves 150 million users across 30 countries, and it recently rolled out new peer-to-peer payment tools.

Therefore, PayPal is a market leader, but it doesn’t have unlimited pricing power. Some of its merchants might switch over to Square or Stripe, or roll the dice with swipe fees on Apple Pay or Google Pay.

The key takeaway

PayPal is still a good long-term investment on the fintech market, but investors shouldn’t automatically praise its price hike and assume it will instantly boost its revenue and margins.

Instead, they should keep an eye on its churn rate to see if it was the right move. If it wasn’t, PayPal’s stock could pull back as it struggles to justify its high forward P/E ratio of nearly 50.

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

The post Why PayPal raised its processing fees — and why it could backfire appeared first on The Motley Fool Australia.

More reading

• Are Zip (ASX:Z1P) shares cheap enough to buy now?
• PayPal taking fight to Afterpay (ASX:APT) and ASX banks
• An ASX guide to Cathie Wood and ARK Invest ETFs
• Apple (NASDAQ:AAPL) job ad sparks Bitcoin rumours among enthusiasts

Leo Sun owns shares of Apple, Pinterest, and Square. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, PayPal Holdings, Pinterest, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, PayPal Holdings, and Pinterest. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/3A09dyK

The New Hope Corporation Limited (ASX: NHC) share price will be one to watch on Friday morning. This comes after the coal mining company announced an update to its convertible notes offering.

At the end of yesterday’s market trade, New Hope shares were swapping hands for $1.84.

What did New Hope announce?

It could be an active day for the New Hope share price as investors weigh up the company’s latest release.

According to a statement to the ASX, the energy company has priced its senior unsecured convertible notes at $200 million.

The company said the notes will have a fixed coupon rate of 2.75%, paid twice a year for a 5-year period. Settlement of the bonds is expected on or around July 2021, with a maturity date of 2 July 2026.

This is unless the notes are redeemed, repurchased or converted beforehand.

The notes can be transferred into fully paid ordinary shares, with an initial conversion price of $2.10 apiece. This reflects a 25% premium over the reference price of $1.68 per share.

The net proceeds from the offer are expected to generate $196 million in cash for the company. The funds will be used for general corporate purposes, and may include growth opportunities plus mergers and acquisition activity.

New Hope CEO Reinhold Schmidt said:

We are very pleased with the demand experienced for the convertible notes offering. This transaction has enabled a new group of global institutional investors to invest in New Hope and provides diversified capital for us to expand as we continue to deliver on our core business of providing low cost, reliable and efficient energy to growing nations.

The convertible notes offering enhances New Hope’s ability to pursue growth and acquisition opportunities that may be available in the market, providing value to our investors.

About the New Hope share price

Over the last 12 months, New Hope shares moved in circles until the start of May this year. The company’s share price accelerated last month from a low of $1.13 to a 52-week high of $1.96 on 16 July.

New Hope has a market capitalisation of roughly $1.53 billion, with approximately 832 million shares on its registry.

The post Here’s why the New Hope (ASX:NHC) share price will be on watch today appeared first on The Motley Fool Australia.

More reading

• New Hope (ASX:NHC) share price seesaws after coal pricing update
• These ASX shares just got hit by broker downgrades
• China losing the war against these ASX shares
• These ASX coal shares shone today. What’s next?

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.

from The Motley Fool Australia https://ift.tt/3A05RvE

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

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

What happened

Shares of Tesla (NASDAQ: TSLA) have surged this week, rising more than 10% as of this writing. At one point during the week, the electric-car maker’s shares were up a total of 11.9%.

The stock’s sharp move higher has been fueled by a combination of factors, including volatile Bitcoin trading, news that the automaker may open its charging network to other automakers next year, and an upbeat week for growth stocks like Tesla.

So what

The latest news that may have benefited Tesla stock came on Thursday morning when electric-car news website Electrek reported that Tesla is in talks with Norwegian officials to open up its Supercharger network to other automakers in the country. This follows a rumor last week that Tesla was considering opening up its fast-charging network in Germany. Not only could sharing its extensive charging network create a new revenue stream for Tesla but it could also draw more attention to electric cars overall, speeding up their adoption from consumers.

A rebound in Bitcoin after a sharp sell-off on Tuesday may have also played a role in Tesla stock’s rise this week — particularly on Wednesday. The automaker has purchased $1.5 billion worth of the cryptocurrency and it plans to hold its stake for the long haul. This stake in Bitcoin sometimes causes some volatility in the price of Tesla stock when Bitcoin trades sharply higher or lower.

Finally, many growth stocks rose several percentage points or more as Wall Street starts to warm up to these companies’ shares after many of them were sold off sharply earlier this year. This market trend is likely helping Tesla stock.

Now what

In the meantime, Tesla is wrapping up its second quarter. Investors are likely hoping Tesla can deliver more vehicles than ever before in Q2 as the company strives to hit its guidance to grow total 2021 deliveries more than 50% year over year.

Investors should get an update on the period at some point during the second half of July, when Tesla usually reports its second-quarter results.

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

The post Why Tesla shares surged this week appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock jumped on Wednesday
• Meme stocks most popular US shares for ASX investors
• ASX investors couldn’t get enough of meme stocks last week
• Shiba Inu token tops the 24-hour crypto gainers list…and it’s not Dogecoin!
• ‘Big Shorter’ Michael Burry calls biggest share market bubble of all time

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/3xRf7jD

According to research by Fidelity, as of 31 December, the Australian share market has generated an average total return of 8.55% per annum over the last 30 years.

This means that if you had made a single investment of $25,000 into the share market in 1991 and earned the market return, it would have grown to just under $300,000 today. This demonstrates why buy and hold investing can be such a rewarding endeavour and why Warren Buffett is such a big advocate of the strategy.

With that in mind, here are a couple of ASX shares that have been tipped as top long term options for investors:

Hipages Group Holdings Ltd (ASX: HPG)

The first buy and hold option to consider is Hipages. It is a growing Australian-based online platform and software as a service (SaaS) provider with a focus on connecting tradies with residential and commercial customers. From its platform, it provides job leads from homeowners and organisations looking for qualified professionals.

At present, the company is capturing around 5% of total industry advertising spend. However, analysts at Goldman Sachs see scope for this to increase to levels enjoyed by property listings company REA Group Limited (ASX: REA) in the future as it builds out its ecosystem.

Goldman explained: “We see HPG as an attractive medium-term growth stock – HPG currently captures c.5% of the total industry advertising spend; by contrast REA/CAR capture c.40-60% of spending in their respective categories. As HPG builds out its ecosystem (including the imminent launch of the new “TradieCore” field service software solution), we see scope for HPG to increase its share towards these levels over the long term as the marketplace leader.”

The broker currently has a buy rating and $3.40 price target in Hipages’ shares.

Nanosonics Ltd (ASX: NAN)

Another buy and hold option to consider is Nanosonics. It is a medical device company with a focus on infection prevention. This is something which is growing in importance right now because of the pandemic.

At present, the company generates all its revenue from its industry-leading trophon EPR disinfection system for ultrasound probes. This comes from both unit sales and the consumable products the system requires.

The latter has been growing strongly over the last few years thanks to its expanding footprint. In fact, management estimates that there are now 80,000 patients protected from the risk of cross contamination every day because the ultrasound probe has been high-level disinfected with trophon.

Pleasingly, it may not be long until Nanosonics has another product to boost its revenues. Management is working on several new products that are targeting unmet needs with similarly sized addressable markets.

UBS is very positive on the company. The broker has a buy rating and $7.00 price target on its shares. It believes Nanosonics is a high-quality structural growth story in a post-COVID world.

The post 2 excellent ASX shares for buy and hold investors appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares this leading broker loves
• 3 excellent ASX growth shares rated as buys
• 2 growing ASX tech shares this broker rates very highly
• 4 quality ASX growth shares rated as buys
• 2 highly rated ASX growth 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 Hipages Group Holdings Ltd. and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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/3duHg8D

The NEXTDC Ltd (ASX: NXT) share price has been a strong performer over the last 12 months.

Since this time last year, the data centre operator’s shares have rallied 22% higher.

Can the NEXTDC share price keep climbing?

One leading broker that believes the NEXTDC share price can still run a lot higher from here is Goldman Sachs.

According to a note released this morning, the broker has reiterated its conviction buy rating and put a $14.80 price target on the company’s shares.

Based on the current NEXTDC share price of $11.80, this price target implies potential upside of 25% over the next 12 months.

What did Goldman say?

Goldman notes that one of NEXTDC’s key competitors, Equinix, recently hosted an analyst day and highlighted the robust outlook for interconnected data centres.

Equinix advised that it expects FY 2021-2025 revenue to grow at a compound annual growth rate (CAGR) of 7% to 9%. It also estimates that its total addressable market (TAM) will grow from US$60 billion to US$80 billion by FY 2025.

This appears to support Goldman’s view that NEXTDC is well-positioned to deliver strong revenue and EBITDA growth over the coming years.

Goldman commented: “We remain high-conviction on the growth profile ahead, forecasting +37MW contract wins across FY22-23E (=65% conversion of options). Combined with recent share price underperformance, this gives an attractive growth adjusted valuation. We reiterate our Buy (on CL) on NXT, the most compelling growth story in our coverage.”

Anything else?

In addition to the above, the broker notes that merger and acquisitions activity is continuing in the global data centre market and this could soon include NEXTDC. Goldman suspects that the company could be interested in acquiring the Australian assets of Global Switch.

It estimates that NEXTDC would require $550 million to $900 million of equity if acquired for $1.2 billion to $1.6 billion. This would represent a 14-18x EV/EBITDA applied to calendar year 2019 EBITDA. Though, it acknowledges that the company has not confirmed whether it would be interested in such an acquisition. This might be something for investors to look out for.

The post Leading broker tips NEXTDC (ASX:NXT) share price to race higher appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why analysts love Zip (ASX:Z1P) and these fantastic ASX growth shares
• 2 fantastic ASX 50 shares rated as buys
• First time in 30 years! 6 ASX shares for crazy times: analyst
• How Microsoft’s new Xbox could spur ASX data centre shares

Motley Fool contributor James Mickleboro owns shares of NEXTDC 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/3xS1Kji

There are some high-quality S&P/ASX 200 Index (ASX: XJO) shares that might be excellent ideas to consider.

The below two businesses are two of the global leaders at what they do and they might continue to be good investments:

Xero Limited (ASX: XRO)

Xero is one of the world leaders in cloud accounting software. It aims to provide beautiful software that “connects people with the right numbers anytime, anywhere, on any device.”

The ASX 200 share said that for accountants and bookkeepers, Xero helps build a trusted relationship with small business clients through online collaboration.

It has a number of useful tools. One example is that business owners might be able to get paid faster. Xero says that businesses can improve cash flow by getting invoices paid faster on Xero with time-saving tools and reminders.

Xero has more than 2.7 million subscribers worldwide. FY21 saw subscribers rise by 20%, with Australian subscribers going up 22% to 1.1 million and UK subscribers growing 17% to 720,000. The strongest growth rate was with the rest of the world subscribers, which increased 40% to 175,000.

The above subscriber growth helped operating revenue increase by 18% to NZ$849 million. Xero’s gross profit margin increased 0.8 percentage points to 86% during FY21.

Management are very clear with the goals for the business:

Xero will continue to focus on growing its global small business platform and maintain a preference for reinvesting cash generated, subject to investment criteria and market conditions, to drive long-term shareholder value.

Macquarie Group Ltd (ASX: MQG)

The global investment bank has seen its share price go up 30% over the last year. Over the last six months, Macquarie shares have risen 8.5%.

Macquarie has proven that it is capable of producing profit despite the impacts of COVID-19. It has various business units – some are cyclical whereas others are ‘annuity-like’. Macquarie Asset Management is one of the biggest infrastructure managers in the world.

The annuity businesses provide a fairly consistent and defensive source of earnings for the ASX 200 investment bank.

However, there are also times when the cyclical parts of the business can power profit higher. That happened in FY21 when net profit increased by 10% on FY20 to $3 billion. The commodities and global markets (CGM) division generated profit growth of 50% with profit helped by the short-term client demand for the supply of gas and power in North America during extreme winter conditions.

Looking at Macquarie’s outlook, the CEO Ms Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets, strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost saving initiatives and efficiency, a strong and conservative balance sheet and a proven risk management framework and culture.

The post 2 excellent ASX 200 blue chip shares to consider appeared first on The Motley Fool Australia.

More reading

• Nuix (ASX:NXL) share price falls as warrant to search offices issued
• CBA (ASX:CBA) partners with Xero’s Waddle for new financing product
• 2 ASX growth shares this leading broker loves
• Why we avoid mining and biotech ASX shares: fund manager
• 5 things to watch on the ASX 200 on Tuesday

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 Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and 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/3gW4NQo

With rates still at record lows, the share market remains arguably the best place to earn a passive income.

But which dividend shares should income investors be buying? Two worth considering are listed below. Here’s why they have been tipped as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price has been a strong performer in 2021. Since the start of the year, the banking giant’s shares have risen a sizeable 22%.

This strong return has been driven by the bank’s impressive performance so far in FY 2021. For example, during the first half, ANZ achieved a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

The good news is that analysts at Morgans are confident that there will be more of the same in the second half and beyond. In light of this, the broker recently retained its add rating and lifted its price target on the company’s shares to $34.50.

Morgans is also forecasting fully franked dividends of $1.45 and $1.63 per share over the next two years. Based on the current ANZ share price of $28.04, this will mean yields of 5.2% and 5.8%, respectively.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another ASX dividend share to look at is Sydney Airport. Although the recent COVID outbreak in Sydney is likely to hit the airport operator hard in the near term, its longer term outlook remains as positive as ever.

This is thanks to increasing domestic tourism and its position as the main gateway into Australia. The latter is likely to lead to a strong increase in passenger numbers once international borders finally open again.

Goldman Sachs is a fan of the company and believes it would be worth considering a patient investment. It is forecasting an 8.8 cents per share dividend in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $5.78, this will mean yields of 1.5% and 4.7%, respectively.

Goldman has a buy rating and $6.73 price target on its shares.

The post Why ANZ (ASX:ANZ) and this dividend share could be in the buy zone appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) says interest rates could jump as early as next year
• Sydney Airport (ASX:SYD) share price is slipping amid COVID border chaos
• 2 ASX dividend shares with attractive yields
• Liar loans could return to haunt ASX bank shares as 1-in-5 borrowers lie to lenders
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

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/3zZOET4

If you’re on the lookout for some growth shares, then you might want to take a look at the ones below. They are all quality businesses which have been tipped as buys recently.

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

Altium Limited (ASX: ALU)

The first growth share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platforms. With PCBs found inside almost all electronic devices, the company has been benefitting greatly from the proliferation of electronic devices due to the rapidly growing Internet of Things and artificial intelligence markets.

Analysts at Credit Suisse are positive on the company. The broker currently has an outperform rating and $42.00 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement and English language testing services. Although it has been hit hard by the pandemic, it has been tipped to come out of the crisis in an even stronger market position. Especially given how many of its smaller rivals have failed to survive the tough trading conditions.

Analysts at Morgans believe the company is very well-placed for growth post-pandemic. As a result, the broker has an add rating and $28.48 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final ASX growth share to consider is Kogan. It is a rapidly growing ecommerce company which has been a big winner from the shift to online shopping. The good news is that the shift still has a long way to go, which should underpin strong sales growth for some time to come. And while Kogan is struggling with excess inventory and slowing sales right now, this is only expected to be a short term headwind.

Credit Suisse has an outperform rating and $17.93 price target on its shares. It remains very positive on its medium term growth prospects.

The post 3 stellar ASX growth shares named as buys appeared first on The Motley Fool Australia.

More reading

• The Kogan (ASX:KGN) share price has fallen 44% in 2021
• Why the Adairs (ASX:ADH) share price tumbled 10% today
• 8 ASX shares that supercharged us out of COVID-19: analyst
• 3 stellar ASX tech shares rated as buys
• Which ASX 200 shares are winners from the latest retail trade figures?

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 Altium, Idp Education Pty Ltd, and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com 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/3h0WRNT