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The Regis Resources Limited (ASX: RRL) share price is one to watch today after the company provided an acquisition update.

At Wednesday’s market wrap, the gold miner’s shares closed the day at $2.67.

Why the Regis share price is on watch

Investors will be keeping an eye on the Regis Resources share price today after the company announced its board has approved the development of a new underground mine under the current Garden Well open pit.

According to this morning’s release, Regis has been granted approval for the transfer of certain tenements from IGO Ltd (ASX: IGO). This means that the proposed acquisition of a 30% interest in the Tropicana project by Regis has been given the green light.

The consent of the transfer came from the Minister of Mines and Petroleum.

Regis will now look to complete the transaction of sale with a cash consideration of $903 million. This is expected to occur on or around 31 May 2021.

Regis Resources managing director and CEO Jim Beyer commented:

We are very pleased that the Minister’s approval for the tenement transfer has been received and, now that the transaction is unconditional, we look forward to completing the deal.

…This acquisition provides significant strategic benefits to Regis and when combined with our existing assets, provides a larger-scale, longer-term financial and operating platform to pursue internal and external growth opportunities.

About Tropicana

Located in the Albany-Fraser Orogen in Western Australia, the Tropicana gold mine is considered one of Australia’s top five largest gold mines.

The open-pit and underground mine achieved gold production of 463 thousand ounces (koz) in FY20. Furthermore, the site has guidance of between 380koz to 430koz at an all-in-sustaining cost of $1,730 to $1,860 in FY21. The lower estimate is due to the impact at Havana for access to the deeper open pit ore from late-2021.

Regis share price performance

It’s been a rough 12 months for investors, with Regis Resources shares plummeting 40% since this time last year. Furthermore, the company’s shares hit a multi-year low just last week. When gazing over the company’s year-to-date performance, the Regis share price is down by around 28%.

At today’s prices, Regis has a market capitalisation of roughly $1.86 billion, with approximately 696.6 million shares on issue.

More reading

• Struggling ASX gold shares just got upgraded by a top broker
• Top brokers name 3 ASX shares to sell next week
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher
• IGO (ASX:IGO) share price lifts on latest updates

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

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

Just when you thought a rapid vaccine rollout would lead to good news for brick-and-mortar stores, Amazon (NASDAQ: AMZN) comes along and reminds investors just how large a shadow e-commerce can cast by crushing its first-quarter earnings.

I wrote in April that the king of e-commerce has a habit of exceeding expectations, and it came through on April 29 doing just that as it outperformed revenue growth guidance of 33% to 40% with a 44% year-over-year increase to its top line.

The first-quarter earnings report was strong across the board, but here’s one important number you might not have noticed.

Sales aren’t letting up …

The obvious story in Amazon’s earnings report was retail. U.S. sales accounted for 59% of total revenue in the first quarter as Amazon has stepped up its retail capabilities during the pandemic to provide customers with essentials (and everything else). This contributed to outsized growth over the past year. 

While U.S sales increased 40% year over year, international sales were up 60% and accounted for 28% of total revenue. Amazon made a lot of progress with its international expansion in the first quarter, including a new website in Poland and the first international use of its cashierless Just Walk Out technology in London. These are just a glimpse of its efforts abroad as Amazon continues to widen its global reach.

… and retail is contributing more to the bottom line

Amazon Web Services (AWS) had a great quarter as well, though it didn’t grow quite as quickly with revenue up 32% year over year. However, AWS has always punched above its weight in terms of profitability as the segment accounted for 59% of operating income last year despite making up just 12% of total sales.

But in the first quarter, the contribution from AWS to operating income shrank to just 47%, even as operating margin for the segment held steady at about 31%. What you probably missed from this latest quarter was the role the company’s retail operation played in the boost to profitability.

Across the U.S. and international retail operations, operating margin more than tripled year over year to 4.9%, helping to push Amazon’s total operating margin during the first quarter from 5.3% to 8.2%. That boost was partially driven by lower pandemic-related expenses, but profitability was still much higher than pre-pandemic levels.

The company’s net margin widened to 7.5% as well — net income of $8.1 billion more than tripled year over year.

A new era for Amazon

Amazon has been the leader in e-commerce for years, but the dramatic shift to digital shopping over the past year presents the company with huge opportunities. And with a new CEO coming on board later this year, there’s a lot for investors to track going forward.

The company has invested in many initiatives to solidify its dominant position, including fulfillment infrastructure to increase the speed and reach of its shipping services, eating into the bottom line. But it’s also working to lower these costs through its own last-mile delivery network, for example. As a retailer that has to account for cost of goods sold, margins will always be narrower than, say, a cloud computing company, but as e-commerce increasingly becomes the norm and shipping costs more competitive, Amazon is demonstrating that it can turn more of its top line into profits.

Amazon stock has increased over 40% in the past year. As the company continues to rack up sales, widen margins, and benefit from consumer shopping trends, investors can expect even more gains.

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

More reading

• Here are the US shares that ASX investors were buying last week
• Why Amazon stock gained 12% in April
• Amazon just posted a record profit margin: 3 reasons it will get even better
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Retail just changed. Forever…

Jennifer Saibil has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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There are a number of reasons why Xero is such a high-quality ASX share worthy of being in most portfolios.

The cloud accounting software business started off in New Zealand but has now expanded significantly to become a global business.

The Xero share price has gone up by 74% over the last year. There are a few reasons why it could just keep climbing:

High margins

Xero has one of the highest gross profit margins on the ASX.

In the FY21 half-year result it reported that the gross profit margin increased from 85.2% to 85.7%. That shows how profitable it is for Xero to add new subscribers.

The power of software is that it can be replicated for clients at very little cost.

Almost all of the new revenue falls to the next profit line.

Xero invests a lot of money into growing the business, but COVID-19 saw the company remain disciplined with spending money. It showed how profitable it could become in the future. Whilst operating revenue grew by 21%, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 86% to $120.8 million.

Long-term growth focused

Xero has been focused on growth for over a decade. It’s trying to invest as much as it can into initiatives that make sense to improve its offering for subscribers and growing market share.

This results in a lower EBITDA and net profit margin than it is capable of, but it grows the value of Xero for shareholders faster (in a more tax efficient way).

Indeed, Xero says:

Xero is a long-term orientated business with ambitions for high-growth. We continue to operate with disciplined cost management and targeted allocation of capital. This allows us to remain agile so we can continue to innovate, invest in new products and customer growth, and respond to opportunities and changes in our operating environment.

Xero has been making bolt-on acquisitions to fast-track an improved product. Tickstar and Planday are two of the latest examples.

Xero is a global leader

Xero is arguably the best cloud accounting company in the world.

It has created numerous time-saving and useful tools, including workflows that can be automated.

The cost of a Xero subscription to subscribers is relatively low, making it very attractive value for business owners and accountants who appreciate how quickly the software does what they want it to. Time is money, after all.

Xero reported in the FY21 half-year result that its total subscriber numbers increased by 19% to 2.45 million in the FY21 half-year result. That included 1 million subscribers in Australia (up 21%), 638,000 in the UK (up 19%), 414,000 in New Zealand (up 13%) and 251,000 in North America (up 17%). The other segment that Xero reports is ‘rest of the world’ which had 136,000 subscribers – an increase of 37%. The rest of the world includes dozens of countries, but notable locations include South Africa and Singapore.

It’s already one of the largest tech shares on the ASX, it could become one of the biggest overall companies in the years to come. 

More reading

• One MASSIVE thing about Tesla and Afterpay that people forget
• 2 quality SaaS ASX shares to buy in May 2021
• Why the Xero (ASX:XRO) share price charged higher in April
• 3 stellar ASX growth shares for investors in May
• The Xero (ASX:XRO) share price is smashing the ASX 50 this month

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 Xero. 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 Newcrest Mining Ltd (ASX: NCM) share price is one to watch closely on Thursday morning.

This follows the Australian gold miner’s announcement after market close yesterday of a change in senior management.

What did Newcrest announce?

In a statement to the ASX, Newcrest advised that its finance director and chief financial officer Gerard Bond will retire.

The departure of Mr Bond will take effect on 3 January 2022, making his a 10-year tenure in the role. Newcrest stated that it will begin looking for a replacement, with both internal and external candidates considered for the position.

Mr Bond underscored the company’s transformation strategy and noted it was now well placed to fund organic growth opportunities.

Newcrest managing director and CEO, Sandeep Biswas recognised Mr Bond’s leadership and service, saying:

Gerard is the longest serving member of the Newcrest executive committee and board and has materially contributed to Newcrest’s success. Gerard has been instrumental in orchestrating the turnaround of Newcrest, across all measures, over his tenure here.

Newcrest chair Peter Hay went on to add:

Gerard is highly respected by his fellow directors for his strong and insightful contribution as a director across the spectrum of matters considered by the board, and we are grateful that the length of notice he has given us of his retirement will facilitate a smooth transition.

While the decision to step away from the company was not given, Mr Bond’s exit could move Newcrest shares today.

Newcrest share price performance

Since August 2020, the Newcrest share price has been on a gradual decline, posting a loss of almost 30%. Year-to-date, however, its shares are relatively flat, sitting around a 2% gain for investors.

As Australia’s largest gold miner, Newcrest commands a market capitalisation of roughly $21.5 billion, with approximately 817 million shares outstanding.

Newcrest shares were swapping hands for $26.39 at the market close yesterday.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Struggling ASX gold shares just got upgraded by a top broker
• How the gold price is impacting these ASX gold shares
• ASX 200 Weekly Wrap: Shares have average week but a great month
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras 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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Tesla Inc (NASDAQ: TSLA) is often cited as the poster child for the irrational exuberance of retail investors.

Notwithstanding the COVID-19 market crash, the stock for the electric car maker has increased 660% times since the start of 2020.

That dizzying ascent has made many people rich. This includes chief executive Elon Musk, who in January briefly overtook Amazon.com Inc (NASDAQ: AMZN) founder Jeff Bezos as the planet’s wealthiest person.

Tesla is now worth more than the 8 biggest traditional car makers combined, even though it produces a fraction of the vehicles they do.

Critics say this is the worst example of an overvalued growth stock. Foolhardy retail investors are pumping money into speculative businesses that are just bleeding cash, they say.

The local version of Tesla is Afterpay Ltd (ASX: APT), which jumped 5-fold in price from the start of 2020 to February this year.

So is the criticism of these businesses valid?

Tesla’s had positive earnings for 3 years

Frazis Capital portfolio manager Michael Frazis pointed out a tidbit that the Tesla critics seem to have missed.

“In the industry, it seems nobody really knows this or really wants to engage with the fact this company’s been profitable for a long time,” he told clients in a video briefing.

When Frazis says “profitable”, he refers to the EBITDA, which has been in the black for the last 3 financial years.

The 2020 financial year saw Tesla generate US$4.3 billion in EBITDA, up 93% on the year before. The car maker even made its first net profit of US$690 million.

Back in 2019, before the massive share price surge, Tesla was an absolute bargain.

“A couple of years ago, this was trading 15 times [enterprise value to] EBITDA. It was basically a value stock!”

The same situation applied to Afterpay when Frazis’ fund bought into it back in 2016.

“It was profitable then. A huge cash draw, but it was profitable.”

What should growth companies do with all that EBITDA

The growth stocks Frazis favours will put all that positive EBITDA back into the business.

“What we want to see is these companies investing all that profit.”

He cited the examples of fintechs Xero Limited (ASX: XRO) and Square Inc (NYSE: SQ) as other businesses where investment back into the business saw their revenues take off.

“In Q1 2015, [Square] spent US$32 million and got US$172 million back in gross profit,” said Frazis.

“This is the dynamic we look for. I wouldn’t get lost in ‘do we care about profitability’ – of course we do, but it’s beside the point.”

Hyperion Asset Management lead portfolio manager Jason Orthman said much the same last month in support of Tesla and Square.

They are actually his fund’s largest current holdings.

“Even though those share prices have re-rated upwards as we were buying them over the last 12 months or so, we still believe that they’re fundamentally misunderstood and there’s a large shift in consumer behaviour going on,” Orthman told The Motley Fool.

“So it’s still really day one for both Tesla and Square.”

More reading

• This ASX tech ETF might be in the buy zone today. Here’s why
• Afterpay (ASX:APT) share price tumbles despite investor presentation
• Tesla boss: ASX lithium shares set to boom
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• FAANG stocks crushed earnings; here’s another great reason to buy them

Tony Yoo owns shares of AFTERPAY T FPO, Square, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Square and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T 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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The National Australia Bank Ltd (ASX: NAB) share price will be on watch today.

This follows the release of the banking giant’s half year results this morning.

How did NAB perform in the first half?

As with the other banks that recently reported, NAB’s performance improved significantly during the first half of FY 2021.

According to the release, NAB reported cash earnings of $3,343 million for the six months ended 31 March. This was up 94.8% on the prior corresponding period. It is also a 35.1% increase if you exclude large notable items.

This was driven by earnings growth across its Personal Banking, Corporate & Institutional Banking, and New Zealand Banking businesses, which offset weakness in its Business & Private Banking segment.

Personal Banking reported cash earnings of $859 million, up 14.1% on the prior corresponding period. The segment benefitted from reduced credit impairment charges, home loan repricing, lower funding costs, and lower operating expenses.

The Corporate & Institutional Banking segment delivered a 15.7% increase in cash earnings to $782 million. This reflects improved outcomes across most key drivers and increased margins from risk and pricing discipline.

New Zealand Banking achieved a 9.6% increase in cash earnings to NZ$616 million. This was due to growth in lending and improved margins, combined with lower credit impairment charges.

Finally, the Business & Private Banking reported a 10.3% decline in cash earnings to $1,216 million. This reflects lower revenue due to low interest rates and higher operating expenses.

Asset quality improves

A key driver of its result was the writeback of a credit impairment charge of $128 million. This compares to a charge of $1,161 million in the prior corresponding period.

Management advised that this improvement reflects the partial release and non-repeat of forward-looking collective provisions for potential COVID-19 impacts and lower underlying charges.

Excluding forward-looking provisions, underlying charges reduced $447 million due to lower level of individual impairments and reduced charges for Australian retail exposures.

Dividend

Pleasingly for investors that see the NAB share price as an income option, the banking giant has increased its dividend.

The bank’s board has declared a fully franked interim dividend of 60 cents per share. This is double last year’s interim dividend.

The NAB share price will trade ex-dividend for this on 13 May.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How did the NAB (ASX:NAB) share price move today after landmark loan?
• Why the NAB (ASX:NAB) share price is at a 52-week high
• ASX 200 Weekly Wrap: Shares have average week but a great month
• What to expect from the NAB (ASX:NAB) half year result

Motley Fool contributor James Mickleboro 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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Two fund managers have both declared Airtasker Ltd (ASX: ART) is a great business, but one explained why she bought into it and the other put up a case for not investing.

Airtasker is an online marketplace that matches customers that need chores done to “taskers” who bid to execute it for a fee.

The company listed on the ASX in March after an initial public offering price of 65 cents per share. The stock was going for $1.20 on Wednesday afternoon.

The Firetrail Small Companies Fund bought into the Australian business during a pre-IPO round.

Firetrail equity analyst Eleanor Swanson said that Airtasker’s competitive advantage was that it wasn’t prescriptive about what service was offered to end users.

“Users create their own unique tasks and communicate the requirements directly to taskers,” she posted on Livewire.

“The flexibility is valued by both customers and taskers, reflected by the fact that a new task is posted on Airtasker every 17 seconds. In addition, the company is now the number 1 employer of platform workers in Australia, ahead of even Uber!”

Airtasker’s 3 paths for growth

Swanson laid out three different opportunities that Airtasker could leverage for future growth:

1. Marketing to accelerate new customer sign-ups and spending frequency
2. New products such as Tasker Superstore
3. Overseas expansion

Airtasker has seen consistent growth in new customer numbers, according to Swanson. This was especially impressive last year when marketing spend was cut by 90% after the COVID-19 pandemic arrived.

“We estimate 8% of Australian households have used Airtasker with current levels of brand recognition sitting at about 50%,” she said.

“The company aims to reach over 80% brand awareness within the next 2 years. Heightened brand awareness will drive increased market penetration and growth in total transaction value on the marketplace.”

Swanson called for the platform to invest in “call-to-action marketing” to get more out of existing customers.

“Currently, customers transact on Airtasker 2 times per annum, on average. An increase to 3 times per annum would immediately deliver 50% revenue growth [even with] customer numbers flat.”

Airtasker also has an opportunity to replicate the Australian model into the UK, New Zealand, Singapore and US markets.

“New markets increase Airtasker’s total addressable market 12 times to $643 billion.”

Why Airtasker wasn’t a buy for this fundie

Frazis Capital portfolio manager Michael Frazis also thought Airtasker was “a great company”.

“I think it will generate positive returns over time, probably better than most stocks,” he told clients in a video update.

But he had a simple reason why he didn’t invest in it.

“We passed on it because growth isn’t high enough,” he said.

“That’s not to say it’s not going to accelerate and it’s not going to do really well… But when we looked at it, the growth rate wasn’t high enough for us.”

Frazis explained that the average revenue growth rate within his fund was now about 110% per annum.

“We’re really looking at companies in that category,” he said.

“They’re rare, they’re hard to find, but they can really move when they get going.”

More reading

• Seven West (ASX:SWM) share price wobbles on market update
• Why Airtasker, Ecofibre, Nuix, & Woolworths shares are sinking
• ASX 200 rises, Kogan jumps, gold miners sold off
• Why Airtasker, Appen, Downer, & Kogan shares are charging higher
• The Freelancer (ASX:FLN) share price is soaring 8% today

Motley Fool contributor Tony Yoo 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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More reading

• These ASX dividend shares keep giving investors a payrise
• 2 buy-rated ASX dividend shares for income investors
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• 2 fantastic blue chip ASX 200 shares rated as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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There are a handful of ASX dividend shares that have a record of giving shareholders an income payrise for many years in a row.

It has been difficult to find consistent growth of income in recent years because of slow growth and low inflation.

But these two ASX dividend shares have kept increasing the dividend payout:

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the largest pathology healthcare businesses in the world.

It has operations in Australia, Europe and North America.

Over the last 20 years, Sonic has increased its dividend in nearly every year. In the latest result (the FY21 half-year result) the Sonic board decided to increase the interim dividend by another 6%.

Healthcare spending has been increasing for a long period of time thanks to an ageing population, better technology and a stronger focus on health outcomes.

Sonic has been one of the most important businesses involved in the fight against COVID-19 as it has been conducting millions of COVID-19 tests.

Whilst COVID-19 is moderately impacting Sonic’s core business, the testing is more than making up for it. This can be seen in the HY21 result where revenue rose 33% and net profit jumped 166%. Sonic has been able to utilise existing infrastructure. 

The ASX dividend share is looking to invest some of its elevated profit cash into acquisitions and other opportunities.

At the current Sonic share price, it has a partially franked dividend yield of 2.5%.

Brickworks Limited (ASX: BKW)

Brickworks is another ASX dividend share that has been growing its dividend for several years.

But its dividend has been one of the most reliable on the ASX. It hasn’t cut its dividend for over four decades, largely thanks to the growing dividend from its substantial holding of Washington H Soul Pattinson and Co Ltd (ASX: SOL) shares, an investment conglomerate.

Soul Patts gives Brickworks a lot of underlying diversification with its investments in telecommunications, property, resources, agriculture and so on.

This cross-holding relationship has served them both well for a number of decades.

Brickworks also funds its dividend from its partnership with Goodman Group (ASX: GMG) where they jointly own an industrial property trust that builds quality buildings on excess Brickworks land.

The latest projects are two huge warehouses for Amazon and Coles Group Ltd (ASX: COL). The completion of these facilities is expected to significantly increase the rental profit as well the capital value of the trust.

There’s even more land that the ASX dividend share has available for building on over the coming years. This will fund higher dividends for years to come.

At the current Brickworks share price, it has a fully franked dividend yield of 2.8%. That’s after a 5% increase to the interim dividend in the HY21 result.

More reading

• Why these 5 ASX construction shares went strong today
• ASX healthcare shares could be next to be hit by the digital disruption
• ASX stock of the day: Brickworks (ASX:BKW) shares top the ASX 200
• Morgans just added these ASX shares to its “best ideas” buy list
• 2 ASX dividend shares to buy in May 2021

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended 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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Fortunately for income investors, there are a good number of dividend shares offering attractive yields at present.

Two ASX dividend shares that are highly rated are listed below. Here’s why they could be top options:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is Australia’s largest fully integrated owner, manager, and developer of large format retail centres.

Aventus has been a solid performer over the last 12 months. This has been underpinned by the quality of its tenancies and its exposure to everyday needs and national retailers.

Goldman Sachs is a fan of the company. It currently has a buy rating and $3.04 price target on its shares.

The broker is forecasting a ~16.6 cents per share distribution in FY 2021. Based on the current Aventus share price, this represents a 5.6% yield.

Super Retail Group Ltd (ASX: SUL)

Another highly rated ASX dividend share to consider is Super Retail. It is the retail conglomerate behind popular brands BCF, Macpac, Rebel, and Super Cheap Auto.

It has been a very strong performer in FY 2021. For example, in the first half it reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Positively, more of the same is expected in the second half following a positive trading update. That update revealed that its growth has accelerated, with like-for-like sales up 28% over the first 44 weeks of FY 2021.

Management also revealed that its gross margin had remained steady since the end of the half.

Goldman Sachs was pleased with the update and responded by retaining its buy rating and $15.00 price target on its shares. The broker is also expecting an 84 cents per share fully franked dividend in FY 2021.

Based on the current Super Retail share price of $11.86, this represents a 7% yield.

More reading

• Top broker tips Super Retail (ASX:SUL) share price to smash the market
• ASX 200 rises, Flight Centre drops, Super Retail grows
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• Super Retail (ASX:SUL) share price surges 5% higher on strong sales update
• Here’s why the Aventus (ASX:AVN) share price is on the rise

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group 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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