Tag: Motley Fool

  • 2 ASX 200 blue chip shares that might be the best to buy

    ASX shares upgrade buy Woman in glasses writing on buy on board

    There are some high-quality S&P/ASX 200 Index (ASX: XJO) blue chip shares that could be best ideas to be thinking about at the moment.

    A few ASX 200 shares are well-liked by several brokers which indicates that they might be interesting to look at:

    Corporate Travel Management Ltd (ASX: CTD)

    Corporate Travel describes itself as a global leader in business travel management services. Its aim is to find savings, efficiency and safety for businesses and their travellers all around the world.

    It’s currently rated as a buy by six brokers. Morgans is one of the brokers that likes Corporate Travel Management shares and it’s the broker’s pick of the sector.

    In a recent trading update, Corporate Travel Management said that it’s returning to profit. It broke-even in March and expects positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter of FY21.

    The ASX 200 share is seeing strong domestic demand in the Australia and New Zealand region with total client activity climbing to 85% of FY19 booking levels as of mid-April.

    New Zealand continues to be a standout and, as of mid-April, was trading at above 160% of FY19 booking levels.

    The US is experiencing positive signs of activity recovery. Despite lockdowns in the UK and Europe, significant essential travel client wins in this region continue to contribute profitability to the group.

    Management believe the company is best leveraged to a domestic recovery. Around 70% of pre-forma FY19 revenue is generated from the US and the UK. These regions have the most advanced vaccination rollouts. Corporate Travel Management said that the speed of the rollouts supports expectations of a rapid return to corporate domestic travel and meaningful levels of pan-European and trans-Atlantic travel after the northern hemisphere vacation period.

    Idp Education Ltd (ASX: IEL)

    Idp Education says that it’s a global leader in international education services. It helps international students study in English speaking countries.

    The company says that its success is from connecting students with the right course in the right institution and the right country.

    IDP is also a co-owner of IELTS, the world’s most popular high-stakes English language test. It also operates 11 English language teaching campuses across South East Asia.

    It’s currently rated as a buy by at least five brokers. Morgans is one of the brokers that believes the ASX 200 share is a buy, with a price target of $28.48 over the next 12 months. Whilst the broker is positive about the business, the COVID-19 surge in India is a headwind with 40% of IELTS’ testing revenue being derived from there.

    The ASX 200 blue chip share’s management say that it has a resilient business model. Its diverse business model and strategy is holding the organisation in good stead through crisis.

    The recovery is ongoing. Demand remains, with growing IELTS capacity through new computer-delivered centres. It’s also increasing counsellor capacity to support students into FY22 and FY23.

    IDP Education is investing in its digital technology and capabilities. It has also accelerated its innovation strategy. According to Morgans, the IDP Education share price is priced at 56x FY22’s estimated earnings.

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  • 2 blue chip ASX dividend shares analysts are tipping as buys

    Thankfully, in this low interest rate environment, the Australian share market is home to a range of shares that are expected to provide attractive yields to investors in 2021. 

    If you’re interested in adding a few to your portfolio, then you may want to look at the ones listed below. Here’s why they could be dividend shares to buy:

    Australia and New Zealand Banking GrpLtd (ASX: ANZ)

    Although the ANZ share price has been a very strong performer in 2021, it doesn’t appear to be too late for investors to snap up shares. According to a recent note out of Morgans, its analysts have retained their add rating and lifted their price target on its shares to $33.50. This compares to the latest ANZ share price of $28.16.

    But even better, is that despite rising 22% since the start of the year, its shares are still expected to provide income investors with generous yields in the near term.

    For example, Morgans is forecasting fully franked dividends of $1.45 and $1.63 per share over the next two years. Based on the current ANZ share price, this will mean yields of 5.15% and 5.8%, respectively.

    Wesfarmers Ltd (ASX: WES)

    Another option to consider is Wesfarmers. It is the conglomerate behind a number of quality businesses such as Bunnings, Catch, Kmart, and Officeworks.

    Wesfarmers has been performing very positively in FY 2021, delivering solid sales and profit growth during the first half. This has been driven by growth across the majority of its businesses but particularly from the Bunnings business. The hardware giant has been benefiting from home improvement-related government stimulus and the booming housing market.

    One broker that is a fan is Goldman Sachs. It currently has a buy rating and $59.70 price target on its shares. This compares to the latest Wesfarmers share price of $54.73.

    The broker is also forecasting fully franked dividends of $1.88 per share in FY 2021 and $1.94 per share in FY 2022. This represents attractive yields of 3.5% and 3.6%, respectively.

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

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

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  • 5 things to watch on the ASX 200 on Tuesday

    Investor sitting in front of multiple screens watching share prices

    On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.2% to 7,045.9 points.

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

    ASX 200 expected to rise

    The Australian share market looks set to push higher on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher this morning. On Wall Street, the Dow Jones rose 0.55%, the S&P 500 jumped 1%, and the Nasdaq stormed 1.4% higher.

    Oil prices jump again

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 3.75% to US$65.96 a barrel and the Brent crude oil price has risen 3% to US$68.45 a barrel. Oil prices climbed amid speculation that sanctions on Iran may not be lifted.

    TechnologyOne results

    The TechnologyOne Ltd (ASX: TNE) share price will be one to watch on Tuesday when it releases its half year results. All eyes will be on the performance of its key Global SaaS ERP solution, which has been the main driver of growth in recent years. Management has advised that it expects strong growth in SaaS ARR and profit and to double in size over the next five years. However, it has warned that it expects the first half of 2021 will not be indicative of the full year results.

    Gold price rises

    Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a solid day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,883 an ounce. Weakness in the US dollar and bond yields drove the gold price higher.

    Iron ore price sinks again

    It could be another difficult day for iron ore producers BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) after the iron ore price continued to sink. According to Metal Bulletin, the spot iron ore price is down a further 4.1% to US$192.42 a tonne.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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  • Why the Infinity Lithium (ASX:INF) share price is rocketed 38% higher

    Rocket launching into space

    The Infinity Lithium Corp Ltd (ASX: INF) share price was one of the best performers on the ASX today.

    This follows a number of highlights that the lithium explorer provided in a market release this morning.

    At the end of market trade, Infinity Lithium shares finished the day at 9.3 cents apiece, up 38.8%.

    What’s driving the Infinity Lithium share price higher?

    Investors fought to get hold of Infinity Lithium shares after the company announced a series of meetings between key figures.

    According to its release, Infinity Lithium advised that its managing director and CEO Ryan Parkin met with Vice-President of the European Commission, Maros Sefcovic last Wednesday. The two discussed the current status of the San José Lithium Project and reinforced the timely completion in line with the strategic objectives of the European Battery Alliance (EBA). Mr Sefcovic underlined the importance of lithium’s raw materials in helping the European automotive industry transition to electric vehicles. In the first quarter of 2021 alone, electric vehicles represented 15% of all automotive sales.

    San José is a high-grade lithium project being developed in the Extremadura region of Spain. Focused on the production of battery grade lithium chemicals, it represents the second largest hard rock lithium deposit in Europe. Infinity Lithium currently holds a 75% interest in the project.

    Mr Sefcovic touched on the Spanish consortium that comprise of the five industrial projects of the entire battery value chain, saying:

    There are the critical raw materials, there is the anecdotal evidence of how far we have moved I would highlight the piece of information that just two years ago we dd not have lithium on the list of critical raw materials for Europe. Now we know that by 2030 we will need 18 times more, by 2050 we will need 60 times more, and when I talk to the industry, they still tell me this is a very conservative estimate. On top of this we still do not have one single refinery for lithium in Europe.

    I am so pleased that from the start we have been working on making sure that we are covering the whole value chain.

    What else happened?

    The following day on 20 May, Mr Sefcovic and the President of Spain, Mr Pedro Sánchez unveiled the first step of the Espana 2050 project. Aimed to serve as a blueprint for other European countries, the long-term national study called on to achieve greater efficiency is using lithium to replace its dependence on traditional fossil fuels.

    Mr Sánchez noted that his government recognises the geostrategic importance of the San Jose project and the country’s long-term roadmap for the transformation. The availability of lithium raw materials is significant for Spain, in order for it to become a sustainable country and emit a low carbon footprint.

    Infinity Lithium advised that it is continuing to engage with major project stakeholders following the cancellation of the Investigation Permit Valdeflorez.

    The Infinity Lithium share price has accelerated to more than 120% over the past year.

    Where to invest $1,000 right now

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  • 3 growing small cap ASX shares to watch

    Magnifying glass on blue background symbolising searching for ASX shares

    The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

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

    Damstra Holdings Ltd (ASX: DTC)

    Damstra is a growing integrated workplace management solutions provider. The company’s cloud-based workplace management platform is used by businesses across the globe to track, manage, and protect their workers and assets.

    During the first half of FY 2021, the company delivered a 29.6% increase in revenue to $13.3 million. Even if you annualise this, it is still the smallest fraction of a total addressable market estimated to be worth US$20 billion by 2022.

    IntelliHR Ltd (ASX: IHR)

    Another small cap ASX share to watch is IntelliHR. It is a cloud-based human resources (HR) and people management platform provider. Its platform has been designed to support HR professionals and leadership teams within an organisation, using technology that automates manual HR processes and captures critical people data.

    Management notes that this gives users a real-time understanding of an organisation’s human resources and provides tools to create a performance-based culture aligned with the employer’s business strategy. It also contributes to strategic decision-making with data driven insights. 

    IntelliHR recently released a trading update which revealed annual recurring revenue (ARR) had reached $3.55 million. This was double what it reported a year earlier.

    SILK Laser Australia Limited (ASX: SLA)

    A final small cap ASX share to watch is SILK Laser. It is a laser, skin care, and cosmetic injections company that has been performing very strongly in FY 2021. In February, SILK Laser released its half year results and revealed a 62% increase in network sales to $44.9 million and a 305% increase in net profit to $4.7 million.

    Looking ahead, management sees plenty of opportunities to expand its network to drive growth. At present, SILK has a total of 56 clinics in operation. This is well short of its goal of increasing its network by 6 to 10 new clinics per annum up to a total of approximately 150 clinics.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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  • The Chimeric (ASX:CHM) share price drops despite cancer trial news

    medical research, laboratory, medical breakthrough

    The Chimeric Therapeutics Ltd (ASX: CHM) share price has fallen today. It coincides with the drug development company’s update on its cancer cell therapy.

    At market’s close, the Chimeric share price was trading at 29 cents, down 3.33%.

    Established in 2020, Chimeric is developing a breakthrough cancer cell therapy drug for solid tumours. The company uses chlorotoxin, from scorpion venom, to bind and direct T cells to target glioblastoma, or GBM.

    Initial scientific research conducted in Los Angeles has found promising anti-tumour activity from CAR T therapy.

    What did Chimeric update the ASX with?

    In its announcement, Chimeric advised it has started treatment on the second cohort of its CLTX CAR T phase 1 trials. The study is being conducted at the City of Hope, a world-renowned cancer treatment and research centre near Los Angeles.

    Specifically, the first patient in the second dosing group received a higher level of treatment than that administered to the first dosing group. The dose-escalation study seeks to assess Chlorotoxin CAR T’s safety and maximum tolerance in participants suffering from recurrent or progressive GBM.

    Patients in this group will be administered their treatment via two methods – intracranial intratumoral (ICT) and intracranial intraventricular (ICV) at a total dose of 88 x 106 CAR T cells.

    Chimeric hopes to recruit between 18 to 36 people with MMP2+ recurrent or progressive GBM across 4 different dose levels. This is expected to run over the course of a 24-month period. Once the appropriate dosing amount is established, the company will move to phase 2 trials.

    Chimeric chief operating officer Jennifer Chow commented:

    We are very encouraged by the continued progress of the trial, moving to this important next phase with dose escalation and dual routes of administration.

    This is another significant milestone in the development of this important therapy for patients with progressive or recurrent glioblastoma.

    Chimeric share price review

    Since listing on the ASX boards at the start of this year, Chimeric shares have remained relatively flat. The company’s shares reached an all-time high of 44 cents in January, before treading lower, hovering around the 30 cent mark.

    Based on today’s Chimeric share price, the company has a market capitalisation of roughly $56 million, with approximately 196 million shares outstanding.

    Where to invest $1,000 right now

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  • 2 ASX dividend shares that could be a buy for income today

    A row a pink piggy banks ranging in size from small to big, indicating ASX share price and dividends growth CBA bank dividend increase

    With interest rates remaining at near-zero, record lows, the appeal of ASX dividend shares for income remains strong. Since there are very few alternatives out there to a fully franked dividend, choosing the right dividend shares to generate income for your ASX share portfolio is a delicate task. After all, 2020 saw many ASX shares that used to have a reputation for solid dividend income, rain hail or shine, cutting their shareholder payouts.

    Here are 2 ASX dividend shares for your consideration today.

    Rural Funds Group (ASX: RFF)

    Rural Funds Group is an ASX REIT (real estate investment trust) that specialises in agricultural properties. This could present many advantages from an income perspective right off the bat. We all need food and other products that rely on farmland for production. Rural Funds owns a number of properties around Australia that are leased out for the production of everything from grapes to beef, macadamias, sugar cane and almonds.

    Rural Funds has managed to deliver a pretty robust schedule when it comes to paying out dividends. The REIT aims to increase its annual dividend distributions by 4% per annum. It managed to do just that last year, despite the ravages of the pandemic. On the current Rural Funds share price, the company has a trailing dividend yield of 3.94%.

    Magellan Infrastructure Fund (ASX: MICH)

    Another ASX dividend share to consider today is this listed fund from Magellan Financial Group Ltd (ASX: MFG). Magellan Infrastructure Fund is designed to provide a robust stream of income for shareholders, with a low risk of permanent capital losses.

    It does so by investing in a portfolio of infrastructure assets. These include toll road companies, electricity generators and retailers, airports, rail, and water utilities, amongst other things. This fund invests in companies all over the world, but you can find the ASX’s own Transurban Group (ASX: TCL) amongst its current holdings. It’s also hedged against foreign currency movements.

    Magellan Infrastructure Fund’s last two dividends came in at 5.95 cents a share and 7 cents a share. That gives this company a trailing distribution yield of 4.42% on current pricing. Because it’s a managed investment vehicle, there is also a management fee of 1.05% per annum for investors to consider.

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

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

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

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  • The Chalice Mining (ASX:CHN) share price hits record high today

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    Chalice Mining Ltd (ASX: CHN) shareholders are enjoying a great start to the week after shares in the mining company touched an all-time high of $8.37 today.

    The Chalice Mining share price has since retreated and was trading up 4.76% at $8.14 at the market close today.

    As there has been no price-sensitive news from the company this month, it’s possible today’s gains relate to the increasing price of gold.

    At the time of writing, the gold price is up 6.9% and is currently worth US$1883.60 ­an ounce.

    That’s still a way off gold’s highest price of the year so far – US$1950.50 – which it reached in early January.

    Let’s take a look at the Chalice Mining share price and why it has taken off on the ASX.

    About Chalice Mining

    Chalice is a mining explorer. It has 3 major operations in Australia including the Julimar Nickel-Copper-PGE Project, Pyramid Hill Gold Project, and Hawkstone Nickel-Copper-Cobalt Project.

    Chalice is also involved in a number of joint ventures and has three up and coming mining targets, all based in Australia.

    Bumper 2021

    Most of the news Chalice Mining has disclosed to the ASX this year has been in regard to its Julimar Nickel-Copper-PGE Project.

    It had a number of announcements regarding the mine in March, which saw its share price gain 51% in just 1 month.

    Then, in April, the company announced it had found 165 new, high-grade mineralised areas, each with at least 1 gram of palladium per tonne, at the project.

    It also purchased 4 properties in the area to expand the project.

    Chalice Mining share price snapshot

    The Chalice Mining share price is having a fantastic year on the ASX.

    Currently, the Chalice Mining share price has gained 89% since the start of the year and is up a massive 653% since this time last year.

    The miner has a market capitalisation of around $2.6 billion, with approximately 345 million shares outstanding.

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  • ASX 200 up, Zip rises, Aristocrat Leisure reports

    The S&P/ASX 200 Index (ASX: XJO) went up by 0.2% today to 7,046 points.

    Here are some of the highlights from the ASX:

    Zip Co Ltd (ASX: Z1P)

    The Zip share price rose around 1% today after revealing some global acquisitions.

    It’s buying the European buy now, pay later (BNPL) provider Twisto Payments and it has also entered into an agreement to acquire the Middle East, UAE-based BNPL leader Spotii.

    Zip said these strategic transactions will enable it to respond to the increase demand from merchants for a single global BNPL solution across multiple markets with a consistent global service quality.

    The ASX 200 BNPL business already owns some shares of these two businesses, so whilst they are worth $180 million, the transactions will cost a combined amount of $160 million.

    Twisto has over 1 million customers that have transacted on the platform with an annual run-rate of $12 million revenue and $230 million total transaction value (TTV) as well as 14,000 merchants. Some merchants include Pizza Hut, Gap and Under Armour.

    Spotii is operational in both the Kingdom of Saudi Arabia and UAE. It’s poised to expand further in the region.

    Aristocrat Leisure Limited (ASX: ALL)

    The Aristocrat Leisure share price was flat after reporting its FY21 half-year result.

    The ASX 200 business said that its operating revenue fell by 1% to $2.23 billion. Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6% to $750.3 million. It also reported that normalised net profit after tax (NPAT) rose by 18.4%.

    However, looking at the reported result, profit after tax fell 73.5% to $346.5 million. The reported result for the prior corresponding period included the significant item of a deferred tax asset of approximately $1.1 billion which is expected to generate long-term cash tax savings.

    Aristocrat Leisure CEO and managing director Travor Croker said:

    The results are reflected in the share growth and margin expansion achieved across digital and key gaming segments in the six months to 31 March 2021 and the double-digit increased it normalised NPATA delivered in the same period.

    We expect uncertain and volatile conditions to continue near term, and we are closely monitoring key factors including consumer sentiment and gaming venue patronage.

    Nevertheless, we enter the second half of fiscal 2021 with excellent momentum, resilience and confidence with a strong balance sheet to continue to invest organically to grow share and accelerate growth through M&A in line with rigorous criteria.  

    New Hope Corporation Limited (ASX: NHC)

    The New Hope share price rose by by 0.4% today after giving its quarterly update.

    The coal miner reported that its total saleable coal production for the three months to 30 April 2021 was down 3.3%. For the nine months to April 2021, total saleable coal production was down 20.4%.

    It generated EBITDA of $101 million with “strong” cash generation for the quarter resulting from consistent production combined with improved realised prices. The Newcastle coal price has increased by 78% since September 2020. The mining company expects pricing will continue to improve, the company is well placed to finish the year with a solid financial result. Increased economic activity in Asia and cooler than expected temperatures has translated into stronger pricing and demand.

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

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

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  • 2 growing ASX dividend shares analysts are tipping as buys

    Dividend stocks represented by paper sign saying dividends next to roll of cash

    Interest rates may be at ultra-low levels, but all is not lost thanks to dividend shares.

    The Australian share market is home to a large number of shares offering yields that are vastly superior to savings accounts and term deposits. Two to consider are listed below:

    Aventus Group (ASX: AVN)

    The first ASX dividend share to look at is this fully integrated owner, manager, and developer of large format retail centres.

    Thanks to the quality of its tenancies and its exposure to everyday needs and national retailers, Aventus has been a very positive performer in FY 2021. This is not something that many retail landlords can say.

    One broker that has been impressed with what it’s seen is Goldman Sachs. It currently has a buy rating and $3.04 price target on its shares. The broker notes its resilient performance during a period of uncertainty and a difficult operating environment.

    Goldman is forecasting a 16.6 cents per share distribution in FY 2021 and then an 18.5 cents per share distribution in FY 2022. Based on the current Aventus share price of $2.84, this represents 5.8% and 6.5% yields, respectively.

    Carsales.Com Ltd (ASX: CAR)

    Another ASX dividend share to look at is Carsales. It is the auto listings company dominating the ANZ market and operating in a number of international markets. This will soon include the United States, once the proposed acquisition of Trader Interactive completes.

    Carsales has been growing at a solid rate over the last decade and has continued this trend in FY 2021. Management recently provided guidance for the full year, revealing that it expects revenue of $433 million to $437 million and adjusted net profit after tax of $149 million to $153 million. The latter represents an 8% to 11% increase on FY 2020’s profit of $138 million.

    Analysts at Morgans are positive on the company. They recently put an add rating and $20.82 price target on its shares.

    Morgans is also forecasting dividends of 56 cents per share in FY 2021 and 59 cents per share in FY 2022. Based on the current Carsales share price of $17.62, this will mean fully franked yields of 3.2% and 3.3%, respectively.

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

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

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

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

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