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There are a lot of options for investors to choose from on the Australian share market.

Two that could be worth getting better acquainted with are listed below. Here’s what you need to know about these growing companies:

Nearmap Ltd (ASX: NEA)

The first ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in Australia and North America.

Nearmap’s products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake virtual site visits anywhere there is coverage without leaving the home or office. The company notes that this enables informed decisions, streamlined operations, and meaningful cost savings.

Another positive is that Nearmap has recently bolstered its offering with the launch of several new products and add-ons. This includes an artificial intelligence product which has significant potential.

And while there are some legal issues hanging over the company, management believes the allegations are without merit and will vigorously defend against the complaint. Some recent and significant insider buying appears to demonstrate their confidence in this.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $3.20 price target on the company’s shares. This compares to the latest Nearmap share price of $1.87.

Nitro Software Ltd (ASX: NTO)

Another ASX share to look at is Nitro. It is a global document productivity company helping businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation. This is achieved by providing PDF productivity and eSigning for all in a single, affordable solution.

At present, Nitro is helping more than 11,000 businesses globally drive digital transformation. This includes 68% of the Fortune 500 and three of the Fortune 10.

From these customers, the company reported a 64% increase in annual recurring revenue (ARR) to $27.7 million in FY 2020. This was driven by new customer growth and 117% net revenue retention. This means it not only retained customers, it generated 17% more revenue from them.

Positively, similarly strong growth is expected in FY 2021. Management has provided ARR guidance of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%. This is still well short of a PDF document productivity and eSigning total addressable market (TAM) estimated to be worth $28 billion.

Morgan Stanley is bullish on the company. Its analysts currently have an overweight rating and $3.70 price target on the company’s shares. This compares to the latest Nitro share price of $3.31.

The post 2 growing ASX shares that deserve your attention appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX tech shares named as buys
• 2 top ASX shares for growth investors
• 3 exciting ASX tech shares to watch
• Why the Nearmap (ASX:NEA) share price tanked in May
• Top ASX shares to buy in June 2021

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nitro Software 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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High-performing fund manager Wilson Asset Management (WAM) has revealed two ASX shares that it rates as buys within the WAM Research Limited (ASX: WAX) portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that invests in the most compelling undervalued growth opportunities in the Australian market.

The WAM Research portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 16.3% per annum since the strategy changed in July 2010, which is superior to the S&P/ASX All Ordinaries Accumulation Index return of 9.5% per annum.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Virtus Health Ltd (ASX: VRT)

Virtus Health is a fertility business. WAM Research explains that it helps more than 5,000 people become parents each year as the largest provider of assisted reproductive services in Australia, the market leader in Ireland and Denmark, and a growing presence in Singapore and the UK.

It operates 43 in vitro fertilisation (IVF) clinics globally, as well as seven day hospitals and the Virtus diagnostic and pathology service.

As it recovers from the impacts of the COVID-19 pandemic, Virtus is seeing a “strong uplift” in demand for IVF services.

The ASX share is considering licensing its technology through its precision fertility capabilities to other IVF players globally. WAM Research said this would be a revenue stream which is not capital intensive, and a strategy the fund manager believes will see significant upside.

The fund manager is also positive on Virtus Health CEO Kate Munnings, who was appointed in March 2020. WAM Research thinks Ms Munnings has the ability to monetise the intellectual property within the organisation to pursue other revenue sources in precision fertility, genetics testing and digitalisation.

Fletcher Building Limited (ASX: FBU)

The other ASX share that WAM Research referred to was Fletcher Building, which is a manufacturer, home builder and partner on major construction and infrastructure projects.

The fund manager pointed out that in May, Fletcher Building announced that earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21 is expected to be between $650 million to $665 million, which is at the upper end of its previous guidance range.

WAM Research also referred to the capital return that Fletcher Building is going to return to investors in the form of a NZ$300 million on-market share buyback as a result of its strong balance sheet.

The fund manager is positive on the ASX share as building market activity remains robust and government stimulus continues to support the sector. This will underpin the delivery of a “strong” uplift in EBITDA margins over the next one or two years.

The post Top fund manager names these 2 ASX shares as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Why the Fletcher Building (ASX:FBU) share price just hit a 52-week high
• ASX 200 drops, ALS jumps, Fletcher Building rises

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health 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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Listed below are a couple of growth shares that could be worth considering with a long term focus.

Here’s why analysts rate them highly:

Bravura Solutions Ltd (ASX: BVS)

The first ASX share to look at is Bravura. It is a leading provider of software solutions for the wealth management and funds administration industries.

Bravura has a portfolio of solutions that are both high quality and have significant market opportunities. Chief among them is its popular Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices.

But Bravura is far from a one-trick pony. It has been strengthening its offering over the last couple of years via acquisitions. This includes adding FinoCamp, Midwinter, and Delta Financial Systems to its portfolio.

After a couple of years of significant headwinds from Brexit and COVID-19, Bravura looks to be back on the right path again. Management recently reaffirmed its guidance for FY 2021 net profit after tax of $32 million to $35 million and second half revenue growth of 10% half on half.

Macquarie currently has an outperform rating and $4.00 price target on the company’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to look at is this pizza chain operator. Domino’s has been growing at a consistently solid rate for over a decade thanks to the popularity of its offering and the expansion of its footprint.

Pleasingly, its pizzas remain popular and its footprint can still get significantly larger. For example, at the end of the first half, the company had a network of 2,800 stores. It is now aiming to double this over the next decade in its existing markets.

This excludes the Taiwan market, which Domino’s announced its entry into via the acquisition of Domino’s Taiwan last week. Management advised that it has a sophisticated network of 138 franchised stores and 19 corporate stores at present. However, it sees opportunities to increase its network to 400+ stores in the future. It also expects to deliver growth in its average weekly unit sales.

Bell Potter currently has a buy rating and $122.00 price target on the company’s shares. It noted that with a leverage ratio of 1.1x, it has $446 million in funding headroom. And while it has just spent $79 million on Domino’s Taiwan, it still has ample capacity to make further acquisitions. Which is something management advised that it is actively pursuing.

The post 2 ASX growth shares that could be top buy and hold options appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher
• ASX 200 up 0.2%: Tech shares rise, Domino’s expands
• Domino’s (ASX:DMP) share price rises on acquisition news
• ASX 200 rises again, Domino’s orders an acquisition, Premier sales boom

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended 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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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 14.9% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 10.1%.

These are the ASX shares that WAM outlined in its most recent monthly update:

Aristocrat Leisure Limited (ASX: ALL)

WAM Leaders pointed out that in May, it released a “strong” half-year result, which was well ahead of market expectations and demonstrated its leverage to the economic recovery.

That result was attributed to land-based revenues recovering faster than expected, driven by clear market share gains and strength in US gambling spend, as well as an improvement in the profit margins of its digital division.

WAM Leaders is still positive on Aristocrat Leisure based on expectations that the company can continue to gain market share and grow its mobile gaming business. The fund manager believes there’s upside optionality from the iGaming opportunity, and the company has a strong balance sheet to continue to invest for future growth.

CSL Limited (ASX: CSL)

CSL is a business that WAM Leaders increased its position in during the month. The LIC increased its holding of CSL as it became more positive on the business.

WAM Leaders said that CSL is premised on plasma collection foot traffic reaching post-coronavirus highs as the vaccine rollout continues, combined with improvements in plasma yields, and therefore profit margins.

Computershare Ltd (ASX: CPU)

Computershare was another ASX share that WAM Leaders added to with its portfolio.

WAM Leaders bought more shares of Computershare because of its earnings leverage to higher US interest rates, as the world’s largest economy continues to deliver strong inflation data.

The fund manager said that leverage to interest rates has nearly doubled with Computershare’s recent acquisition of commercial banking business with Wells Fargo Corporate Trust Services.

Challenger Ltd (ASX: CGF)

The annuity business was the final ASX share that WAM Leaders referenced that it bought more shares of in the portfolio.

WAM Leaders added Challenger to its portfolio after its earnings guidance downgrade in April. The fund manager is positive on the company due to its rebased expectations around the life business’ profit margin, upside from new distribution opportunities and its attractive valuation.

The post WAM Leaders thinks these ASX shares might be buys appeared first on The Motley Fool Australia.

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• What happened with the CBA (ASX:CBA) share price this week?
• 3 exciting ASX growth shares rated as buys
• Hot ASX sector with ‘easily’ 10% to 15% upside in coming months: analyst
• 2 highly rated blue chip ASX 200 shares
• 2 ASX 200 blue chip shares named as buys

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Challenger 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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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:

MNF Group Ltd (ASX: MNF)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $6.30 price target on this VoIP provider’s shares. This follows news that MNF is divesting part of its direct business. Morgan Stanley believes offloading the slow growing part of the business is a smart move by management and puts MNF in a stronger position for growth from its higher quality wholesale businesses which have exposure to structural tailwinds. The MNF share price ended the week at $5.40.

Sezzle Inc (ASX: SZL)

Analysts at Ord Minnett have retained their buy rating and $11.90 price target on this buy now pay later (BNPL) provider’s shares. According to the note, the broker believes Sezzle’s deal with US retail giant Target could be a game changer. It expects the deal to be a major boost to its sales and has upgraded its estimates to reflect this. The Sezzle share price was fetching $9.24 at Friday’s close.

Zip Co Ltd (ASX: Z1P)

A note out of Citi reveals that its analysts have retained their buy rating but trimmed their price target on this BNPL provider’s shares slightly to $10.90. The broker notes that recent data appears to show slowing growth in the BNPL sector, which it feels is due largely to elevated sales at the height of the pandemic. Positively, though, its US-based Quadpay business is delivering the strongest growth in the key market, albeit slightly below Citi’s expectations. Nevertheless, the broker remains positive on Zip and sees value in its shares at the current level. The Zip share price was trading at $7.15 on Friday.

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

More reading

• Why is Sezzle outperforming the Zip (ASX:Z1P) share price so far in 2021
• The Zip (ASX:Z1P) share price is lifting by 7% today
• 3 ASX shares for buy and hold investors to check out
• Top brokers name 3 ASX shares to sell today
• Why Zip (ASX:Z1P) and this ASX growth share are highly rated by analysts

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 MNF Group Limited and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Sezzle Inc. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Cleanaway Waste Management Ltd (ASX: CWY)

According to a note out of Credit Suisse, its analysts have downgraded this waste management company’s shares to an underperform rating and trimmed the price target on them to $2.40. The broker made the move after looking through its Suez acquisition plans. While it doesn’t expect any regulatory issues with the acquisition, it appears to be cautious and waiting for signs of success before getting carried away with its earnings estimates. In the meantime, the broker believes its shares are overvalued at the current level. The Cleanaway share price ended the week at $2.66.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut the price target on this pizza chain operator’s shares to $70.71. Credit Suisse has been looking into web traffic to Domino’s businesses. It notes that there has been a sharp slowdown in traffic to its Australian websites, which has sparked downgrades to the broker’s like for like sales growth estimates. And while its international operations are still performing well, it’s not enough for the broker to become more positive. The Domino’s share price was last trading notably higher than this price target at $115.30.

Fortescue Metals Group Limited (ASX: FMG)

Analysts at Morgans have downgraded this iron ore producer’s shares to a reduce rating with a lowered price target of $18.70. The broker made the move largely on the belief that the company is particularly sensitive to a maturing iron ore cycle. In addition to this, it suspects that Fortescue could fall short of its cost expectations due to cost pressures in Western Australia. Overall, it believes the risk/reward balance for Fortescue is finally skewed to the downside. The Fortescue share price ended the week at $23.22.

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

More reading

• Top brokers name 3 ASX dividend shares to buy today
• Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher
• ASX 200 up 0.2%: Tech shares rise, Domino’s expands
• Domino’s (ASX:DMP) share price rises on acquisition news
• ASX 200 rises again, Domino’s orders an acquisition, Premier sales boom

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Earlier this month, the Reserve Bank of Australia once again kept the cash rate on hold at a record low of 0.1%. While the outlook for rate increases is improving, it still looks likely to be a long time until rates return to “normal” levels.

In light of this, income investors could be better off sticking with dividend shares instead of term deposits or savings accounts. But which dividend shares should you buy? Two top dividend options to consider are listed below. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to look at is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets that are leased to some of the biggest players in the agricultural sector on long term agreements.

A big positive about its leases are the fixed rental increases built into them. This means the company is well-positioned to grow its rental income at a consistently solid rate over the next decade. This gives management great visibility with its future earnings, leaving it well-placed to deliver on its distribution growth target of 4% per annum.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. This will be up 4% on FY 2021’s distribution. Based on the current Rural Funds share price of $2.54 this will mean a yield of 4.6%.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to consider is Telstra. This telco giant could be a good option due to its improving outlook and generous yield.

In respect to its outlook, due to a combination of cost cutting, rational competition, and a positive growth outlook in the mobile business from its 5G leadership, Telstra appears well-placed to return to growth potentially as soon as FY 2022. This should be boosted further by its separation and asset monetisation plans which are underway.

Earlier this month, analysts at Ord Minnett reiterated their buy rating and $4.10 price target. The broker continues to forecast 16 cents per share fully franked dividends for the foreseeable future.

Based on the current Telstra share price of $3.58, this will mean attractive yields of almost 4.5% over the coming years.

The post 2 ASX dividend shares with yields above 4% appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares today
• The Telstra (ASX:TLS) share price hit a new 52-week high today
• Why Telstra (ASX:TLS) and this ASX share could be top options for a retirement portfolio
• 2 ASX 200 shares that could be buys for dividends
• Why ASX agricultural shares are high on institutional investors’ radars

James Mickleboro does not own any shares 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 RURALFUNDS STAPLED and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A number of popular small cap ASX shares have underperformed recently. While this is somewhat disappointing for shareholders, it may have created a buying opportunity for others.

Two exciting small cap ASX shares that one leading broker believes have significant potential upside are listed below. Here’s what you need to know about them:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software to sales and service organisations.

Its platform pairs functionality with a highly intuitive user interface to provide an advanced content management system, document automation, internal communications, and a fully integrated modern learning management system.

The latter system ensures that the right learning materials are delivered to the right person, at the right time, in the right way. This is ultimately helping users to compete more effectively to produce significantly improved business results, increase sales win rates, reduce expenditures, and improve customer satisfaction.

Judging by its blue chip customer base, which includes Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Nike, its platform appears to be delivering results for users. This is underpinning very strong recurring revenue growth.

For example, Bigtincan recently released its third quarter update and revealed that it is on target to achieve annualised recurring revenue (ARR) at the top end of its FY 2021 guidance range of $49 million to $53 million. This compares to FY 2020’s ARR of $35.8 million, representing year on year growth of 36.9% to 48%.

Morgan Stanley currently has an overweight rating and $1.50 price target on the company’s shares. This compares to the latest Bigtincan share price of $1.03.

ELMO Software Ltd (ASX: ELO)

Another small cap to look at is ELMO. It is a growing cloud-based human resources and payroll software company that provides businesses in the ANZ and UK markets with a unified platform that streamlines a wide range of everyday processes.

ELMO has been growing at a very strong rate over the last few years and has continued the trend in FY 2021. This is being driven by organic growth and the acquisitions of complementary businesses Breathe and Webexpenses.

ELMO recently released a trading update and revealed that it expects its ARR to be between $83 million and $85 million in FY 2021. This will be up 50.5% to 54.2%, respectively, on FY 2020’s ARR of $55.1 million.

While this is a large number, it is still well short of its total addressable market. Management estimates that it has a $12.8 billion opportunity in just the ANZ and UK markets. And with its platform being jurisdiction agnostic, it has the option to expand into other markets with relative ease in the future.

Morgan Stanley is also a fan of ELMO. It recently retained its overweight rating and $9.70 price target on its shares. The ELMO share price ended the week at $4.88.

The post 2 small cap ASX shares which could have significant upside appeared first on The Motley Fool Australia.

More reading

• 3 highly rated ASX growth shares analysts love
• 3 rapidly growing small cap ASX shares to watch
• Top ASX shares to buy in June 2021
• Don’t play the game you can’t win…
• Top brokers name 3 ASX shares to buy next week

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

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If you’re a fan of growth shares, then you might want to take a look at the exchange traded funds (ETFs) listed below.

These ETFs give investors access to a collection of some of the highest quality growth shares in the world. Here’s why they could be fantastic additions to most portfolios:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you’re interested in gaining exposure to the growing Asian tech sector, then you can achieve this with the BetaShares Asia Technology Tigers ETF. Among the fund’s holdings you will find the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Pinduoduo, Samsung, Tencent.

In respect to Pinduoduo, it is an ecommerce platform that offers a wide range of products, This includes everything from daily groceries to home appliances. However, it’s not your typical platform. Pinduoduo connects distributors with consumers directly through an interactive shopping experience, allowing them to team up to buy items in bulk at lower prices. In March, the company revealed that it had 788 million annual active customers, overtaking ecommerce behemoth Alibaba.

Another company in the fund is Meituan Dianping. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and countless other services. During the second quarter of FY 2020, the company was making 24.5 million food deliveries per day and had 476.5 million users at the end of September. Meituan also recently raised US$10 billion from investors in order to advance its research on developing autonomous delivery vehicles. This includes drone and self-driving car deliveries.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF filled with growth shares to consider is the VanEck Vectors Video Gaming and eSports ETF.

This popular ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports.

Among the companies included in the fund are giants such as graphics processing unit developer Nvidia and gaming giants Take-Two and Electronic Arts. The latter two companies are responsible for the Grand Theft Auto and FIFA games, respectively, among others. Whereas Nvidia sparked the growth of the PC gaming market in 1999, redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing.

VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. It also points out that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside FAANG stocks.

The post 2 fantastic ETFs for ASX growth investors appeared first on The Motley Fool Australia.

More reading

• Got cash to invest? Here are 2 ASX shares that could be buys
• 2 quality ETFs that could give your portfolio a boost
• 3 reasons the Betashares Asia Technology Tigers ETF (ASX:ASIA) could be a compelling buy
• 2 top ETFs to buy in June 2021
• VanEck Vectors Video Gaming and eSports ETF (ASX:ESPO) could be a top ETF to own

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 BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian share market is home to a large number of companies sharing their profits with shareholders in the form of dividends. This certainly is a blessing given how low interest rates have fallen.

Two ASX dividend shares that offer attractive yields are listed below. Here’s why this broker likes them:

Jumbo Interactive (ASX: JIN)

The first ASX dividend share to look at is Jumbo Interactive. It is the online lottery ticket seller behind the Oz Lotteries website and mobile app.

But there’s more to the company than that. Jumbo also has a software as a service (SaaS) business called Powered by Jumbo. This platform lets lottery operators take their offering online with great ease and without the hassle of having to invest in a development team or build a website.

According to the company, it estimates that there is a US$303 billion global total addressable market for the Jumbo business. In light of this and its high quality technology, this side of the business looks set to its growth engine over the next decade. This bodes well for future earnings and dividend growth.

For now, analysts at Morgan Stanley expect Jumbo to pay shareholders fully franked dividends of 38.3 cents per share in FY 2021 and then 49 cents per share in FY 2022. Based on the latest Jumbo share price, this will mean yields of 2.6% and 3.4%, respectively.

Morgan Stanley has an overweight rating and $15.20 price target on its shares.

Stockland Corporation Ltd (ASX: SGP)

Another ASX dividend share to look at is Stockland. This property company owns, manages and develops a diverse range of property assets including retirement villages, retail centres, business parks, offices, and logistics centres.

Since 1952, the company has been leveraging its diversified model to help create thriving communities with dynamic town centres where people live, shop, and work. This has been a successful strategy, leading to Stockland becoming one of the largest property owners, developers and managers in Australia.

And although the Stockland share price is up 12% in 2021, it may not be too late to invest if you’re looking for a generous yield.

According to a note out of Morgan Stanley, its analysts are forecasting distributions of 25.1 cents per share in FY 2021 and then 27.8 cents per share in FY 2022. Based on the current Stockland share price, this will mean yields of 5.2% and 5.8%, respectively.

Morgan Stanley has an overweight rating and $5.00 price target on its shares.

The post 2 ASX dividend shares this broker likes appeared first on The Motley Fool Australia.

More reading

• What moved the Stockland (ASX:SGP) share price this week?
• These ASX insiders are buying up more shares in their companies
• How ASX data centre shares are racing for the cloud
• 2 quality ASX dividend shares with big yields
• 2 growing ASX dividend shares for income investors

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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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