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ASX dividend shares can be a way to generate income from businesses.

The two businesses in this article have relatively high dividend yields for investors to consider.

Here are two to think about:

Adairs Ltd (ASX: ADH)

Adairs is a retailer that sells homewares and furniture. This business sells products through both its stores and its online channel.

The Adairs share price dropped 11% yesterday. There was a broker downgrade of expectations for FY21 to FY23. Ord Minnett pointed out that Adairs did just settle its deferred payment to Mocka early, which implied that Mocka earnings are below the forecast.

In terms of the dividend, Adairs is expecting to pay a dividend of 26.50 cents per share in FY21. At this lower price, that translates to a grossed-up dividend yield of 9.3%. Then, in FY22, Ord Minnett is predicting a dividend per share of 25 cents – that translates to a forward grossed-up dividend yield of 8.8%.

Adairs is experiencing a high level of online sales, which is leading to a number of benefits. FY21 half-year group online sales were $90.2 million, representing 37.1% of total sales. Adairs online sales grew 95.2%, whilst Mocka sales (all online) rose 44.4%.

This online growth helped the ASX dividend share’s underlying earnings before interest and tax (EBIT) rise 166% to $60.2 million, with statutory net profit after tax (NPAT) growth of 233.4%.

Adairs continues to invest in its digital transformational with money spent on acquiring customers, the customer experience, platform and team. It’s opening a new large national distribution centre in Melbourne in early FY22 to make the business more efficient and save on costs.

Centuria Industrial REIT (ASX: CIP)

This is the largest pureplay real estate investment trust (REIT) in Australia that looks to invest in a portfolio of industrial properties.

It recently increased the size of its portfolio with more acquisitions. The business’ portfolio is now worth over $3 billion, it owns 66 industrial properties.

The three industrial assets that it bought, were worth around $86.1 million, with a combined 5% initial yield and a weighted average lease expiry (WALE) of 5.8 years. Two of these properties were based in Melbourne, with the other being in Sydney.

Two of those additions were distribution centres, whilst one was a manufacturing facility. That manufacturing plant is leased to Rollease Acmeda, a global engineering, manufacturing and distributor of window coverings systems.

The fund manager of Centuria Industrial REIT, Jesse Curtis, said:

CIP’s strategy is to secure high-quality industrial assets within key metropolitan locations and this portfolio transaction is in keeping with this direction. These acquisitions continue to build our strong track record of identifying value and providing value-add opportunities through repositioning and active leasing to deliver reliable income returns and capital growth to our unitholders.

Ord Minnett currently rates the ASX dividend share as a buy. In FY21, the broker is expecting the REIT to pay a distribution of 17 cents per share – that equates to a yield of 4.5%.

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

More reading

• Why the Adairs (ASX:ADH) share price tumbled 10% today
• Why Adairs, Flight Centre, InvoCare, & Santos shares are sinking
• 8 ASX shares that supercharged us out of COVID-19: analyst
• Why the Adairs (ASX:ADH) share price is edging higher today
• 4 factors that could make the Temple & Webster (ASX:TPW) share price a buy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS 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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Are you looking for some attractive dividend yields to boost your income? Then look at the ones listed below.

Here’s why these dividend shares could be great options for income investors right now:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a property company with a focus on large format retail parks.

Aventus has been a very strong performer in FY 2021. This has been driven by its high level of exposure to the household goods and everyday needs sides of the retail market.

In fact, just yesterday the company revealed that the value of its properties has increased by 12% since the end of December. It also upgraded its funds from operations (FFO) per share guidance to 19.4 cents, which represents earnings growth of 7% year on year.

This went down well with analysts at Goldman Sachs. The broker has retained its buy rating and lifted its price target to $3.27. Goldman is also expecting a 16.7 cents per share distribution this year which, based on the current Aventus share price, equates to a 5.4% yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at is Telstra. Goldman Sachs is also a fan of the telco giant and currently has a buy rating and $4.00 price target on the company’s shares.

It likes Telstra partly due to its leadership position with 5G, which it expects to support growth in its post-paid mobile average revenue per user (ARPU) metric in the coming years. Combined with its corporate restructure and potential asset monetisation, the broker believes the future is bright for the telco giant.

As a result, it is forecasting fully franked annual dividends of 16 cents per share for the foreseeable future. Based on the latest Telstra share price, this will mean attractive yields of approximately 4.45% over the coming years.

The post 2 buy-rated ASX dividend shares with 4%+ yields appeared first on The Motley Fool Australia.

More reading

• Why the Aventus (ASX:AVN) share price edged higher today
• The Telstra (ASX:TLS) share price is gaining today
• Why we avoid mining and biotech ASX shares: fund manager
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• 2 more blue chip ASX dividend 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell 0.6% to 7,298.5 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. This follows a subdued night of trade on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 drop 0.1%, and the Nasdaq rise 0.1%.

Woolworths spins off Endeavour Group

The Woolworths Group Ltd (ASX: WOW) share price will be one to watch closely on Thursday. This morning the retail giant will spin off its drinks business. This will see Endeavour Group Limited (ASX: EDV) join the ASX 200 index. Woolworths’ shareholders will receive one Endeavour Group share for every Woolworths share they hold. The Woolworths share price is likely to decline in order to reflect the spinoff.

Oil prices rise

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.6% to US$73.27 a barrel and the Brent crude oil price has risen 0.7% to US$75.33 a barrel. Oil prices climbed to two-year highs after US supply tightened.

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could underperform today after the gold price softened overnight. According to CNBC, the spot gold price is down 0.1% to US$1,775.70 an ounce. While rate hike concerns were eased by the US Fed yesterday, it wasn’t enough to lift the price of the precious metal.

South32 given conviction buy rating

The South32 Ltd (ASX: S32) share price could be undervalued according to analysts at Goldman Sachs. This morning the broker reiterated its conviction buy rating and lifted its price target to $3.80. This compares to the current South32 share price of $2.87. It explained: “We increase our FY21-23 EPS estimates by 1%/11%/20% and NAV by 19% to A$3.86/sh to reflect changes to the GS commodities team’s aluminium price forecasts, and raise our 12-month TP 12% to A$3.8/sh.”

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

More reading

• Experts say oil price could hit US$100 per barrel by end of 2021
• These 3 shares are the best performers of the ASX 50 so far in 2021
• ASX 200 down, Woolworths falls, Costa acquires more farms
• Here are 3 ASX 200 shares that are on the move today
• Woolworths (ASX:WOW) share price slides following update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 small end of the Australian share market is home to a number of companies with the potential to grow strongly in the future.

Three small caps that investors may want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share to look at is Audinate. It is a leading digital audio-visual networking technologies provider. Audinate is best known for its world class Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems. It is converging all previous connection types into one to deliver vastly superior performance while making these systems easier to use, easier to expand, and less expensive to deploy. The number of Dante enabled products manufactured by its customers is now eight times greater than its nearest rival. This makes it the clear industry leader.

Booktopia Group Ltd (ASX: BKG)

The second small cap ASX share to watch is Booktopia. It is an online book retailer which has been growing at a rapid rate in FY 2021. For example, during the first half Booktopia delivered a 51.1% increase in revenue to $112.6 million and a massive 502.3% jump in underlying EBITDA to $8 million. Pleasingly, its strong sales growth has continued since the end of the first half. The company’s revenue increased 53% during the third quarter. Management advised that this strong growth is being driven its new distribution centre, which is allowing it to capitalise on the shift to online shopping.

Damstra Holdings Ltd (ASX: DTC)

A final small cap to watch is Damstra. This integrated workplace management solutions provider’s cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Damstra has been a growing its top line at a solid rate in recent years and has continued this positive form in FY 2021. During the first half, the company reported a 29.6% increase in revenue to $13.3 million. Even when annualised, this is still only a fraction of a total addressable market (TAM). Management expects its TAM to be worth US$20 billion by 2022.

The post 3 small cap ASX shares worth watching closely appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Damstra 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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World-leading oil companies and investment firms are reportedly predicting the price of oil could reach US$100 per barrel by end of the year. No doubt investors in ASX oil shares will be hoping this forecast does, indeed, come to pass.

The COVID-19 pandemic saw oil prices fall last year as global transport ground to a near halt. Since then, as the world has begun to open again, demand for oil has increased at a rapid pace.

At the time of writing, the price of Brent crude oil is trading around 47% higher than it was at the beginning of 2021 – going for US$75.27 per barrel.

After gaining 14.9% over the last 30 days, the price of oil is currently the highest it’s been since 2018.

Over the same month, the Santos Ltd (ASX: STO) share price has gained more than 10%. Meanwhile, shares in industry peers Woodside Petroleum Limited (ASX: WPL) and Oil Search Ltd (ASX: OSH) have gained 5.74% and 6.06%, respectively.

So, could we see the oil price gain another 32% this year? That’s what some industry leaders believe.

Is the oil price set to skyrocket?

According to reporting by Bloomberg this week, world-leading investment firms and oil company bosses told the Qatar Economic Forum the price of oil could skyrocket before the end of 2021.

Bloomberg reported firms including Bank of America Corp (NYSE: BAC) and Goldman Sachs Group Inc (NYSE: GS) believe the price of oil might reach US$100 per barrel before the year is out.

Exxon Mobil Corporation (NYSE: XOM) CEO Darren Woods reportedly also told the forum that a lessening of investments into fossil fuels – which he said is currently occurring – will see demand for the commodity increase ahead of supply.

Leaders of Royal Dutch Shell and TotalEnergies purportedly agreed with Woods’ assertion.

It’s a similar story to the one Santos managing director Kevin Gallagher told the annual oil and gas industry (APPEA) conference last week.

Gallagher said investors and lenders have “turned off the taps” on western fossil fuel companies. He called on industry participants to decarbonise in the hopes that would encourage the support of investors and lenders.

The post Experts say oil price could hit US$100 per barrel by end of 2021 appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX 200 shares that are on the move today
• Why Adairs, Flight Centre, InvoCare, & Santos shares are sinking
• The Santos (ASX:STO) share price has gained 9% in a month
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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 name Krispy Kreme might conjure up some conflicting emotions for Australians. It’s the doughnut that people love to hate, or perhaps hate to love. Or just love. Or just hate.

Well, perhaps we will all get the opportunity to put our money where our mouths are (or aren’t) very soon. According to a report from CNBC, the double-K might be considering an initial public offering (IPO) in 2021.

According to the report, Krispy Kreme’s owner, the private company JAB Holding, is looking to raise between US$560 million and US$640 million in a public float in 2021. JAB took Krispy Kreme private back in 2016 when it bought the business for US$1.35 billion.

The company is reportedly eyeing a listing price of between $21 and $24 per share. That range would give Krispy Kreme an implied valuation of between US$3.46 billion and US$3.96 billion. JAB is eyeing a (very fitting) ticker code of ‘DNUT’ on the Nasdaq exchange.

CNBC tells us that Krispy Kreme’s revenue rose 17% in the 2020 American fiscal year to $US1.12 billion. However, it also reported a net loss of US$60.9 million.

Krispy Kreme has also given its investors net losses for the last three fiscal years. This was apparently due to heavy investment expenses at the company, such as a US$10.3 million, 24-hour flagship store in New York’s famous Times Square.

In a US Securities and Exchange Commission (SEC) filing, the company stated it intends to use the proceeds from its IPO to repay debts, repurchase shares of stock from some of its executives, and make payments on tax withholdings, among other general corporate expenses.

A hot year for IPOs

If Krispy Kreme were to IPO in 2021, it would be the latest in what has been a blockbuster year of listings.

The US has seen big names like Coinbase Global Inc (NASDAQ: COIN), Roblox Corp (NYSE: RBLX) and Squarespace Inc (NYSE: SQSP) undertake public floats. The ASX has also seen some big IPOs this year, such as Airtasker Ltd (ASX: ART).

It will be interesting to see how a Krispy Kreme IPO plays out if it ends up joining this list.

The post Sweet IPO! Will Krispy Kreme become a public company? appeared first on The Motley Fool Australia.

More reading

• These ASX ETFs give investors access to global tech giants
• Why the Aventus (ASX:AVN) share price edged higher today
• These 3 shares are the best performers of the ASX 50 so far in 2021
• 2 top blue chip ASX 200 shares rated as buys
• Why the Adairs (ASX:ADH) share price tumbled 10% today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker 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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While the Australian tech sector is home to some high quality companies, it still pales in comparison to the US tech sector.

Luckily for investors, the emergence of exchange traded funds (ETFs) in recent years means it is incredibly easy now to gain exposure to tech stocks on Wall Street.

For example, the two ETFs listed below allow investors to buy a slice of some of the largest and highest quality tech companies in the world. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to consider is the BetaShares Global Cybersecurity ETF. This fund gives investors exposure to a total of 40 cybersecurity companies. This includes industry giants and emerging players in the rapidly growing sector.

Among the companies you’ll be owning a slice of are Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, Proofpoint, Splunk, and Zscaler.

The index the fund tracks has generated an average annual return of 20.1% over the last five years. This would have turned a $10,000 investment into ~$25,000. And given how demand for cybersecurity services continues to grow, the next five years look very positive for the companies in the fund.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ETF from BetaShares to consider is the Betashares Nasdaq 100 ETF. This extremely popular ETF gives investors access to 100 of the largest (non-financial) companies on the famous Nasdaq stock exchange.

This means you’ll be getting exposure to tech giants such as Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, Tesla, and Google parent Alphabet.

As with the BetaShares Global Cybersecurity ETF, the Betashares Nasdaq 100 ETF has been generating strong returns for investors in recent years. Since this time in 2016, the ETF has provided investors with a return of 23.6% per annum. This would have turned a $10,000 investment into ~$28,850.

As a comparison, over the last five years the S&P/ASX 200 Index (ASX: XJO) has generated a total average return of 10% per annum.

The post These ASX ETFs give investors access to global tech giants appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Aventus Group (ASX: AVN) shares nudged higher on Wednesday. By market close, the Aventus share price was trading at $3.12 – up 0.97%. By comparison, the S&P/ASX 200 Index (ASX: XJO) ended the day 0.6% lower.

The real estate company came into focus after announcing a positive revaluation of its portfolio, an upbeat earnings guidance, and new dividend payments.

Let’s take a closer look at today’s news from Aventus.

Why the Aventus share price went up

Aventus shares were in the green today after the company advised preliminary, unaudited results of its portfolio assets showed a gain of 12%, or $254 million, compared to 31 December 2020. This decreases the capitalisation rate of its assets from 6.65% to 6.01%. Aventus said over the past 4 years, its assets have increased in value by 30% or $550 million.

Also, Aventus is forecasting funds from operations (FFO) for this financial year to be about 19.4 cents per security. This is an increase of 7% on the prior corresponding period (pcp). Its last earnings guidance showed only a 4% uptick on the pcp.

Aventus said the main reason for the upgrade is “the continued strong performance of the portfolio and a lower cost of debt and… the one-off true up amount referred to at the half-year results released in February 2021.”

In the last piece of news that may have helped boost the Aventus share price today, the company’s board declared it will pay a final dividend for the year of 4.37 cents per security. In its statement, the company said it expects to make the payments by 26 August this year.

While the payment is down 0.53 cents on the March payment, it is 86% greater than the June 2020 payment.

What does Aventus do?

Aventus Group is the owner and manager of over 20 retail centres across Australia. It was formed in 2018 when its separately listed holding company and real estate investment trust (REIT) merged.

Management commentary

Aventus Group CEO Darren Holland said:

Strong investment demand for LFR centres, together with continued positive trading in our centres and a focus on driving sustainable income growth across the portfolio, have all contributed to this significant valuation increase. Pleasingly, this valuation increase will see the Group’s gearing reduce to the bottom of our target gearing range, enhancing our flexibility to achieve Aventus’ strategic objectives in the year ahead.

The hard work of our team in driving the portfolio and diligently managing our capital has also resulted in an upgraded preliminary unaudited FY21 FFO of 19.4 cents per security, which represents growth of 7% from FY20.

Aventus share price snapshot

Over the past 12 months, the Aventus share price has increased by almost 39%. In fact, just since the beginning of the year, shares in the company have appreciated by nearly 14%.

Aventus Group has a market capitalisation of around $1.8 billion.

The post Why the Aventus (ASX:AVN) share price edged higher today appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares have generous yields
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• 2 high yield ASX dividend shares for income investors
• 2 growing ASX dividend shares analysts are tipping as buys

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

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While the S&P/ASX 200 Index (ASX: XJO) is a favourite among many market watchers, Australia’s very top companies can also be found in another, more niche index.

The S&P/ASX 50 Index (ASX: XFL) is where you’ll find Australia’s biggest fish. It’s a scoreboard of shares with larger market capitalisations and more liquidity than all others on the ASX.

Today, the ASX 50 is down 0.77%. Though, it’s gained 11.68% since the beginning of the year. That’s ever so slightly better than the ASX 200’s 10.8% year-to-date gain.

And these 3 shares are elbowing out the rest. These are the top performing shares of the ASX 50 so far this year.

2021’s cream of the ASX 50 crop

Aristocrat Leisure Limited (ASX: ALL)

Having gained 38% so far this year, Aristocrat shares are playing an impressive game.

Currently, one share in this ASX 50 bigwig will cost an investor $42.78.

Aristocrat Leasure is a gaming technology company that produces poker machines (pokies) and casino management systems as well as free-to-play digital games.

The company has a market capitalisation of around $27 billion, with approximately 638 million shares outstanding.

Westpac Banking Corp (ASX: WBC)

The banking giant isn’t too far from leading the ASX 50, with the Westpac share price having gained 34.64% since the start of 2021.

Right now, the bank’s shares are trading for $26.08.

Westpac is one of Australia’s big four banks and the oldest bank in the country.

It’s also currently the fourth largest company on the ASX, with a market capitalisation of around $96 billion and approximately 3 billion shares outstanding.

Cochlear Limited (ASX: COH)

The Cochlear share price has gained an impressive 30.85% year to date.

One portion of the company will set an investor back $247.30, making the Cochlear share price among the highest on the ASX.

The company manufactures and sells hearing devices. It’s a global leader in its field, distributing its products to more than 20 countries.

Cochlear has a market capitalisation of around $16 billion, with approximately 65 million shares outstanding.

The post These 3 shares are the best performers of the ASX 50 so far in 2021 appeared first on The Motley Fool Australia.

More reading

• ASX 200 down, Woolworths falls, Costa acquires more farms
• Brokers name 2 ASX dividend shares to buy
• Here are 3 ASX 200 shares that are on the move today
• Why are Soul Patts (ASX:SOL) shares surging 9% today?
• CBA (ASX:CBA) says interest rates could jump as early as next year

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 Cochlear Ltd. 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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Are you wanting to buy some blue chip ASX shares for your portfolio? Then you might want to check out the ones listed below.

These quality companies have been tipped as blue chips to buy. Here’s what you need to know:

ResMed Inc. (ASX: RMD)

The first blue chip for investors to consider is ResMed. It is a medical device company with a focus on sleep disorders.

ResMed has continued to grow at a decent rate over the last 12 months despite the pandemic’s negative impact on sleep disorder diagnoses and referrals. The good news is that with vaccines rolling out, referrals are expected to pick up again in FY 2022. And with one of its largest rivals recently having to recall an extremely popular sleep apnoea device, the company has been tipped to win further market share and continue its growth.

Looking further ahead, the company still has a very long runway for growth over the next decade. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025. Helping it achieve this goal will be its high quality product portfolio, rapidly growing digital health ecosystem, and the growing awareness of sleep disorders and their impact on a person’s overall health.

Earlier today, Macquarie upgraded the company’s shares to an outperform rating with a $34.85 price target.

Sonic Healthcare Limited (ASX: SHL)

A second blue chip share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Unlike ResMed, Sonic has had the wind in its sails over the last 12 months. This led to the company reporting a 33% increase in half year revenue to $4.4 billion and a 166% jump in first half net profit to $678 million in February.

This was driven largely by strong demand for COVID-19 testing services. However, it is worth acknowledging that the rest of the business has been performing positively as well since trading conditions returned to relatively normal.

One broker that is a fan of the company is Credit Suisse. It currently has an outperform rating and $40.00 price target on Sonic’s shares.

The broker is seeing signs of pent up demand for healthcare services after people delayed seeking healthcare during the pandemic. It expects Sonic to benefit from this, along with further COVID-19 testing in the near term.

The post 2 top blue chip ASX 200 shares rated as buys appeared first on The Motley Fool Australia.

More reading

• Why Actinogen, Novonix, ResMed, & Zip shares are pushing higher
• ASX 200 down 0.5%: Costa’s acquisition, Afterpay & Zip charge higher
• Top brokers name 3 ASX shares to buy today
• 3 top ASX shares in sector selling at 30% discount: expert
• 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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and Sonic Healthcare 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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