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If you’re looking for ways to boost your income in retirement, then you might want to look at the shares listed below.

These high quality ASX shares could be great options for retirees. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first option to consider for a retirement portfolio is this supermarket giant. It could be a good option due to its solid long term growth prospects, generous dividend policy, and defensive qualities.

Coles has been growing strongly during the pandemic. And while its growth will inevitably moderate now as its cycles heightened sales from a year earlier, Goldman Sachs is positive on its medium term growth.

Its analysts are forecasting earnings per share of 76 cents in FY 2021, 81 cents in FY 2022, and then 89 cents in FY 2023. This is expected to lead to dividends per share of 62 cents, 66 cents, and 73 cents, respectively.

If this proves accurate, it will mean a reliable and growing source of income for investors. Based on the current Coles share price of $17.04, this implies yields of 3.6%, 3.9%, and then 4.3%.

Goldman Sachs currently has a buy rating and $20.50 price target on its shares.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another option to consider for a retirement portfolio is Sydney Airport. This airport operator has been hit incredibly hard during the pandemic, but things are starting to look a lot more positive now.

With domestic travel rebounding strongly, save for the occasional lockdown, Sydney Airport’s terminals are becoming busier by the month. This bodes well for its earnings and dividends in the near term.

And while international travel may take some time to return to normal, that doesn’t necessarily mean you won’t receive a generous yield with its shares.

Goldman Sachs is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $6.12, this will mean yields of 1.4% and 4.6%, respectively.

The broker currently has a buy rating and $6.73 price target on its shares.

The post 2 excellent ASX shares for a retirement portfolio appeared first on The Motley Fool Australia.

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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets.

Demand has been growing strongly in recent years and has continued in FY 2021. For example, during the first half of FY 2021, the company reported a 29.6% increase in revenue to $13.3 million. It then followed this up with a 66% increase in third quarter revenue to $6.9 million.

The good news is that this is still only a fraction of its total addressable market (TAM). Management estimates that its TAM will be worth US$20 billion by 2022. This gives it a very long runway for growth.

Shaw and Partners currently has a buy rating and $1.88 price target on the company’s shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Users then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for its offering has been growing strongly and looks set to continue doing so thanks to favourable industry trends. One of those is teleheath, which management notes is creating a need for this type of technology.

According to management, the company’s TAM is estimated to be US$2.75 billion. This gives it a huge opportunity to grow into over the next decade.

Morgans is a fan of the company. It currently has an add rating and $1.68 price target on the company’s shares.

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The Pointsbet Holdings Ltd (ASX: PBH) share price has been an incredible performer over the last 12 months.

Since this time last year, the sports wagering company’s shares are up 108%.

What is PointsBet?

PointsBet is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services via its scalable cloud-based platform.

It currently operates in the ANZ and United States markets and is generating significant growth in both. For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This was driven by a 137% increase in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.

The good news is the company is still only scratching at the surface of the latter market and looks well-placed to capture a growing slice of it.

This is thanks partly to its transformational five-year media partnership with NBC Universal. That deals sees PointsBet become the official sports betting partner of NBC Sports in the United States. Management notes that this partnership provides PointsBet with access to leading national and regional television and digital assets, with the largest sports audience of any US media company, accessing over 184 million viewers.

Can the PointsBet share price go higher?

One leading broker that believes the PointsBet share price still has a long way to run is Bell Potter.

A recent note reveals that its analysts currently have a (spec) buy rating and $20.10 price target on its shares. Based on the latest PointsBet share price of $12.50, this implies potential upside of 61% over the next 12 months.

Bell Potter is particularly positive on its opportunity in the United States.

Its analysts commented: “With partnership agreements in 14 US states, plus an online model requiring no land-based casino / racetrack partnership in Tennessee and Wyoming, PBH has set its target to increase its number of live US states from 6 to 18 plus Ontario by Dec 2022.”

“By Dec 2021, PBH sees the potential to be live in West Virginia, Tennessee, Virginia, Maryland, Arizona and Ohio, while during calendar year 2022 it is targeting a launch in Pennsylvania and Wyoming, as well as New York, Kansas, Missouri, Mississippi and Kentucky (subject to legislation). Including a launch in Ontario, could potentially see PBH operating in North American markets with a combined population of over 153m.”

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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

ARB Corporation Limited (ASX: ARB)

This 4X4 parts company has been a great place to invest over the last decade. Over the period, the company has grown its sales, earnings, and dividend at a consistently solid rate. This has been driven by strong demand for its products in domestic and export markets, which is being underpinned by the growing popularity of SUVs. This positive form has led to the ARB share price generating an average total return of 19.3% per annum since 2011. This would have turned a $20,000 investment into just over ~$117,000 today.

CSL Limited (ASX: CSL)

While the last 12 months have been underwhelming for the CSL share price, that hasn’t stopped it from absolutely smashing the market over the last decade. The biotherapeutics company’s shares have been charging higher since 2011 thanks to its strong sales and earnings growth. This has been driven by increasing demand for its immunoglobulins, the acquisitions of the Novartis influenza vaccines business, and its high level of investment in research and development activities. The latter has ensured that CSL has a pipeline of potentially lucrative products. Over the last 10 years, CSL’s shares have generated an average total return of 24.9% per annum. This would have turned a $20,000 investment into almost $185,000.

REA Group Limited (ASX: REA)

Finally, another company which has impressed over the last decade is this property listings company. REA Group has been able to grow its earnings at a strong rate over the last 10 years thanks to the structural shift to online listings and the dominance of its realestate.com.au website. This has been supported by its growing international operations. This has ultimately led to the company’s shares providing investors with an impressive 30% per annum total return. This means that a $20,000 investment in REA Group’s shares in 2011 would now be worth $275,000.

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There are plenty of ASX shares that are growing their business. A few might be worth investigating for their potential long-term growth.

Businesses that are smaller may have the potential to grow more than blue chips because they’re starting from a smaller level.

Here are two to think about:

MNF Group Ltd (ASX: MNF)

MNF describes itself as a communication software company headquartered in Sydney Australia. Its platform enables companies like Zoom, Google and Twilio to launch and scale communication services without constraints. It offers a number of different communication options for businesses to take advantage of.

The MNF share price has fallen by around 15% since 23 April 2021. That’s despite the business reporting growth.

In the FY21 half-year result, it saw phone numbers on the network increase by 24% year on year to 5.1 million. This was due to new orders from existing wholesale customers and provides management confidence in future growth as each new number provides a potential future revenue stream.

The growth in phone numbers supported a 15% increase in recurring revenue to $55.6 million and a 20% increase in recurring gross margin to $33.4 million. Underlying profit went up 30% to $8.4 million. It’s experiencing rising profit margins.

Looking ahead to future growth, management said that the expansion into Singapore is progressing well. It has commenced technical trials with three major global customers. Those trials are the final step before going live in the Singaporean market which it expects to occur later this financial year.

The ASX share wants to continue growing its market share and expanding into the Asia Pacific region. The Singapore progress is giving it confidence to expand to other Asian countries.

Tyro Payments Ltd (ASX: TYR)

Tyro is a business that provides payment solutions and banking products for businesses. Its technology allows businesses to accept credit and debit card payments with its point of sale terminals. It’s focused on an in-store solution, but it has recently expanded into e-commerce.

Despite all of the impacts of COVID-19, the business reported growth in the FY21 half-year result. It saw merchant numbers increase 13% to 36,720 and 10% growth of transactions processed to $12.1 billion.

The banking side of the business is growing too – total merchant deposits increased from $39.7 million to $104 million.

Half-year earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 464% to $8.5 million.

Other parts of the business are also showing promise. E-commerce transactions grew from a small base, up 376% to $14.8 million. The telehealth payment solution saw transaction growth of 86% to $178.6 million. Tyro also recently announced it had completed the acquisition of health fintech Medipass Solutions.

In the last few months, Tyro is seeing a lot of year on year transaction growth compared to the COVID-19 period. April transaction value was up 147%, with May year on year growth was more than 80%.

The post 2 ASX shares that could be worth looking at this weekend appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) was on form again last week. The benchmark index stormed 1.6% higher over the five days to close at a record high of 7,295 points.

While a good number of shares climbed higher with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Origin Energy Ltd (ASX: ORG)

The Origin share price was the best performer on the ASX 200 last week with a 15.7% gain. This appears to have been driven partly by broker notes out of Macquarie and Ord Minnett. Both brokers are becoming more positive on electricity prices and highlight strong oil prices. The latter broker has retained its buy rating and increased its price target to $5.75. Whereas Macquarie held firm with its outperform rating and lifted its price target to $4.88.

Worley Ltd (ASX: WOR)

The Worley share price wasn’t far behind with a 15.6% jump last week. This was driven by a positive reaction from brokers to its investor day event. Two brokers that were pleased with its update were Citi and Goldman Sachs. Citi retained its buy rating and lifted its price target to $12.60 and Goldman retained its conviction buy rating and $15.60 price target on the engineering company’s shares. Goldman believes Worley is well positioned to capitalise on ramping sustainability spend.

Inghams Group Ltd (ASX: ING)

The Inghams share price was on form and climbed 12.3% last week. This appears to have been driven by a broker note out of Credit Suisse. Last week the broker retained its outperform rating on this poultry producer’s shares and lifted its price target to $4.10. Credit Suisse was pleased with the company’s trading update a week earlier and believes its valuation is undemanding.

Santos Ltd (ASX: STO)

The Santos share price was a strong performer, climbing 12.2% over the five days. This follows a positive week for oil prices. Traders bid oil prices to two-year highs after OPEC and its allies reconfirmed plans to increase production gradually. The oil cartel also spoke positively about demand and is expecting it to increase.

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It was another quality week for the S&P/ASX 200 Index (ASX: XJO). Over the five days, the benchmark index climbed 115.9 points or 1.6% to end at a record high close of 7,295.4 points.

Unfortunately, not all shares were able to follow the market’s lead. Here’s why these were the worst performing ASX 200 shares last week:

Nuix Ltd (ASX: NXL)

The Nuix share price was the worst performer on the ASX 200 last week with a disappointing 23.2% decline. The investigative analytics company’s shares were sold off again after it downgraded its guidance just over a month after issuing it. Nuix is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Management blamed this latest downgrade on the timing of closure of some upsell opportunities and new potential customers.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price was out of form and sank 12.6% last week. This appears to have been driven largely by weakness in the gold price. Silver Lake wasn’t the only gold miner that was under pressure. This led to the S&P/ASX All Ords Gold index losing 3.5% of its value over the five days.

Mesoblast limited (ASX: MSB)

The Mesoblast share price was a poor performer and dropped 8.9%. Investors were selling the allogeneic cellular medicines company’s shares following its third quarter update. During the quarter, the company reported a loss after tax of US$26.5 million. This brought its financial year to date loss to US$76.75 million. Fortunately, thanks to a US$110 million private placement in March, the company finished the period with a cash balance of US$158.3 million. Management believes this is sufficient to meet its short-term goals, commitments, and ongoing operations during the next twelve months.

Appen Ltd (ASX: APX)

The Appen share price was just a fraction behind with a decline of almost 8.9% over the five days. This was driven by weakness in the tech sector and news that the artificial intelligence data services company’s CEO, Mark Brayan, has sold 109,430 Appen shares. Mr Brayan received a total consideration of $1.43 million for the shares. Though, it is worth noting that the sale was made to satisfy tax obligations arising from the vesting of 173,153 performance rights.

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Some ASX shares could be really good ideas to look at right now.

Share prices and profit outlooks are always changing, so different investments might seem like opportunities at different times.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the world’s largest healthcare businesses in the pathology space. It’s operating in a number of different countries including USA, Germany, Australia, the UK, Ireland, Switzerland, Belgium and New Zealand.

It has grown a lot over the last two decades. But the last 15 months has seen revenue rise and profit explode.

Sonic’s COVID-19 testing capability continues to play an important role in pandemic control. At the time of the FY21 half-year result, it had conducted more than 18 million COVID-19 PCR tests.

The business has been able to utilise its existing infrastructure, laboratories and so on to provide the testing services.

In the first half of FY21, revenue grew 33% to $4.4 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 89% to $1.3 billion and net profit after tax (NPAT) grew 166% to $678 million.

Not only does Sonic think that COVID-19 testing is going to continue for the foreseeable future, there’s also the potential for growing demand for COVID-19 immunity testing.

In terms of the outlook, Sonic said there are increasing acquisition, contract and joint venture growth opportunities. This growth potential could be supported by a “very strong” balance sheet.

The ASX share has pointed out that its geographical diversification gives it more opportunities for expansion. Management said the underlying healthcare growth drivers are strong and unchanged.

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

This exchange-traded fund (ETF) is invested in some of the world’s leading companies involved in video game development, eSports, and related hardware and software globally.  

Almost two thirds of the portfolio is invested in ‘entertainment’, like video game creators. But there are other sectors in the portfolio like semiconductors, semiconductor equipment, video game accessories and so on.

There are 25 holdings in the portfolio, with businesses such as Nvidia, Tencent, Nintendo, Bandai Namco, Zynga, Activision Blizzard and Ubisoft in the mix.

VanEck says e-sports reflects the convergence of entertainment, video gaming, sports and media businesses. With an active, engaged and relatively young demographic, the “stage is set for sustainable long-term growth”.

eSports revenue has grown by an average of 28% per annum since 2015. It’s benefiting from game publisher fees, media rights, merchandise, ticket sales and advertising.

The Asia Pacific region is estimated to have generated game revenue of US$78.4 billion in 2020, accounting for almost half of the global games market.

VanEck says another reason to consider this investment is that it provides technology diversification away from the typical companies of Apple, Amazon, Facebook, Google and Microsoft.

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Ah, diversification… One of the most common terms you’re likely to hear in the finance world. Almost every financial advisor, commentator, and drover’s dog out there will tell you that having a diversified portfolio is a good thing. You know, don’t have all your eggs in one basket and all that.

But you might hear of some investors constructing a ‘balanced’ portfolio, diversifying their S&P/ASX 200 Index (ASX: XJO) shares with other assets like fixed-interest government bonds, property, or even gold. You might have even come across the concept of the ’60/40 portfolio’ (60% shares, 40% bonds) that is popular over in the United States. So is this a ‘must-do’? Let’s check it out.

Is balance always a good thing?

Well, to understand why some investors advocate for a ‘balanced’ portfolio, you have to understand what the underlying goal is. For these investors, it’s balancing potential growth with volatility. Most of us don’t really like to see the values of our share portfolios bounce around every time there is market volatility. Most of us would prefer (even if it’s deep down) to see our portfolios rise in a perfectly linear way. But that’s not what the share market gives us, at least most of the time. Now some investors enjoy this volatility, and the opportunities to buy shares ‘on sale’ that it can bring. Others hate it, and may even panic when they see their shares drop in value.

The latter investor is what a balanced portfolio is designed to cater for. The premise is simple – expose your wealth to long-term growth assets like shares, but balance the shares out with another asset class that provides lower returns, but increased stability.

In this way, you are aiming for the best of both worlds – growth with less volatility.

Diversification isn’t always free

However, since there is no such thing as a free lunch, there is always a trade-off. You usually can’t expect a portfolio that invests in stabilising asset classes to perform as well as a portfolio that’s geared for maximum growth. It’s one, the other, or a middle road between the two.

For some investors, this might be a sound idea. If you hate the idea of seeing your portfolio lose money, or experience mental distress during periods of severe market volatility, like a crash, then perhaps diversification into different asset classes may be a good idea. There are many ASX exchange-traded funds (ETFs) that can be used for this purpose. Some include the ETFS Physical Gold ETF (ASX: GOLD), or the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). But if you’re an investor who wants to maximise returns, with little regard for volatility, then there might not be any reason to look to diversify. Shares, including ASX shares, are one of the (if not the) best-performing asset classes if you take a long time horizon. The ASX 200 has beaten the long term returns of government bonds and gold since Federation, and handily so.

So like most things in life, there is no ‘right answer’ here when it comes to portfolio diversification. Only what’s best for you, your portfolio, your investing goals, and risk tolerance.

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Are you looking for some dividend options for your portfolio in June? Then check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys this month:

Bapcor Ltd (ASX: BAP)

The first ASX dividend share to look at is Bapcor. It is the Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas.

Bapcor has been performing very strongly in FY 2021 thanks to strong demand for used cars. This has resulted in elevated sales across its brands.

Positively, the company looks well-placed to continue its growth in the future. This is thanks to its strong market position and its expansion plans. The latter is being driven both domestically and in the Asia market.

According to a note out of Citi, its analysts are expecting Bapcor to grow its fully franked dividend to 19 cents per share in FY 2021 and then 22 cents per share in FY 2022. Based on the current Bapcor share price of $8.17, this will mean yields of 2.3% and 2.5%, respectively.

Citi has a buy rating and $9.50 price target on the company’s shares.

Scentre Group (ASX: SCG)

Times may have been hard for this shopping centre-focused property company, but the worst could now be over.

That’s the view of analysts at Goldman Sachs. Late last month the broker reiterated its buy rating and $3.60 price target on the company’s shares.

Goldman notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre, with the broker’s analysis suggesting that Scentre is far more positively leveraged to inflation than any other Australian real estate investment trusts under its coverage.

Goldman is forecasting a 14 cents per share dividend in FY 2021. Based on the latest Scentre share price of $2.80, this equates to a 5.2% yield.

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