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The Risks to Australia of a 3°C Warmer World report from the Australian Academy of Science found reaching net zero emissions by 2050 is crucial to avoiding massive challenges to Australia’s way of life.

It states that even if Australia becomes carbon neutral, the globe will probably reach average global surface temperatures of 3^oC more than the pre-industrial period. Additionally, it is believed that this will occur by 2100. It’s crucial that ASX listed companies aim for net-zero emissions and get onboard the carbon revolution. This commitment will help avoid massive challenges for Australia’s cities. Additionally, it would help protect the environment and industries, as well as our food and health systems.

The report was also optimistic that Australia can well and truly rise to meet this challenge. We have a skilled workforce, robust industries and tonnes of renewable energy resources.

We’ve had a look around for ASX listed environmentally friendly companies with aims to be carbon neutral.

Here are 3 companies proving it’s possible to reach net-zero emissions

Vulcan Energy Resources Ltd (ASX: VUL)

Vulcan Energy is working towards becoming the world’s first zero-carbon lithium producer for electric vehicle batteries. It plans on doing so by using geothermal energy to drive lithium production. In this process, there is no need for evaporation, mining or fossil fuels.

Vulcan has a brine lithium resource, located in Germany. The company says it has enough lithium to power Europe’s lithium needs for years to come.

First ever comprehensive #NetZeroBy2050 plan for global energy sector coming in May. @VulcanEnergyRes & our #ZeroCarbon #Lithium project will be there every step of the way with baseload #renewable heat & power #ClimateAction #renewableenergy #COP26 @IEA https://t.co/p1iPMcdtB0 pic.twitter.com/s0GOQqjRGB

— Vulcan Zero Carbon Lithium® (@VulcanEnergyRes) March 29, 2021

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Mercury NZ Ltd (ASX: MCY)

Mercury is a New Zealand energy provider leading the way in renewable power. It generates electricity from hydro, solar, wind, and geothermal methods. It also provides customers with natural gas.

The company has committed to converting its entire vehicle fleet to electric powered vehicles. So far, its converted more than 69% of its fleet.

Mercury has submitted its information to the CDP (formerly the Carbon Disclosure Project). Additionally, it has received an A- for its climate-friendly initiatives. This puts them in the top 5 companies in New Zealand.

Happy World Rivers Day to the Waikato River. The mighty source of life and energy for thousands of Kiwis and the backbone of our 100% renewable generation. pic.twitter.com/sfqt56kOYH

— Mercury (@MercuryNZ) September 23, 2020

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Australian Mines Ltd (ASX: AUZ)

Australian Mines’ proposed Sconi Project, to be located in Queensland, is set to mine cobalt and nickel sulphate. It aims to supply its minerals for the electric vehicle market. It is to mine and process ore into battery precursor material on site, thus making it a low-cost operation.

Australian Mines was the first mineral resources company in Australia to be certified carbon neutral. The company employs energy-saving initiatives alongside offsetting any unavoidable emissions.

Australian Mines says it has become the first mineral resources company to be certified a “Carbon Neutral Organisation” under the Australian Government’s Climate Active program | https://t.co/8JClT3PgzT #AustralianMines #Sconi @climate_active #CarbonNeutralMining #futureofmining pic.twitter.com/8NX6xJgbeg

— International Mining (@im_mining) August 19, 2020

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More reading

• Why green bonds are raising the Mercury (ASX:MCY) share price
• 3 attractive ASX shares currently in a dip
• Why Kathmandu, Pushpay, Sigma, & Vulcan shares are storming higher
• Why the Vulcan Energy (ASX:VUL) share price is charging 9% higher
• Why the Mercury (ASX:MCY) share price is surging today

Motley Fool contributor Brooke Cooper 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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Last week the S&P/ASX 200 Index (ASX: XJO) bounced back from a poor start to end the period flat at 6,828.7 points

Acting as a drag on proceedings last week were the shares listed below. Here’s why they were the worst performers on the ASX 200:

Webjet Limited (ASX: WEB)

The Webjet share price was the worst performer on the ASX 200 last week with a 7.9% decline. The online travel agent’s shares came under pressure after the announcement of a convertible note offering to raise $250 million. The net proceeds from the offering will be used to repay $43 million of Webjet’s existing term debt, fund potential acquisitions, and for capital management or general corporate purposes. Investors appear disappointed that the company is raising funds and diluting them again.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price was out of form and sank 7.8% over the four days. This was despite there being no news out of the gold miner. However, weakness in the gold price could’ve been partly to blame for this. At one stage last week, the price of the precious metal dropped to a three-week low.

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price wasn’t far behind with a decline of 7.75% last week. Some of this decline is attributable to the auto retailer’s shares going ex-dividend on Wednesday. Eligible Eagers Automotive shareholders can now look forward to receiving its 25 cents per share final dividend later this month on 20 April.

Inghams Group Ltd (ASX: ING)

The Inghams share price was a poor performer and fell 6.7% over the period. Investors were selling this poultry company’s shares after it announced the sudden exit of its CEO, Jim Leighton. According to the release, Mr Leighton is leaving the CEO role to return to the United States due to personal reasons. He will be placed by non-executive director, Andrew Reeves. Mr Reeves was previously the CEO of George Weston Foods.

More reading

• These were the best performing ASX 200 shares last week
• These were the best performing ASX 200 shares in the Q1 of 2021
• These were the worst performing ASX 200 shares in the Q1 of 2021
• ASX 200 rises, Webjet sinks, Boral climbs
• Why the JB Hi-Fi (ASX:JBH) share price surged 19% in March

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a reasonably mixed week for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index overcame a weak start to end it flat at 6,828.7 points

However, this couldn’t stop some ASX 200 shares from recording strong gains. Here’s why these shares were the best performers on the index last week:

Iluka Resources Limited (ASX: ILU)

The Iluka share price was the best performer on the ASX 200 last week with a 7.5% gain. This appears to have been driven by a broker note out of Ord Minnett. On Monday, the broker upgraded the mineral sands producer’s shares to a buy rating with an $8.10 price target. It made the move to reflect stronger prices and expansion plans at the Eneabba project.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price wasn’t behind and climbed 7.4% over the four days. Last week, analysts at Macquarie looked into the resources sector and upgraded iron ore and other base metal price forecasts notably to reflect strong demand and prices. This led to the broker retaining its outperform rating and putting a $7.00 price target on Champion Iron’s shares.

Boral Limited (ASX: BLD)

The Boral share price was on form and rose 6.7% higher over the week. Investors were buying the building products company’s shares after announcing the completion of the sale of its 50% share in the USG Boral joint venture to Gebr Knauf KG. The two parties agreed a price of US$1.015 billion (A$1.33 billion) for the business. A good portion of this will support a share buyback for up to 10% of its issued capital.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was a positive performer and climbed 5.8% last week. This was despite there being no news out of the rare earth producer. However, with its shares falling reasonably hard last month, this appears to have been driven by bargain hunters swooping in. The Lynas share price is still down almost 8% since this time last month.

More reading

• These were the best performing ASX 200 shares in the Q1 of 2021
• These were the worst performing ASX 200 shares in the Q1 of 2021
• ASX 200 rises, Webjet sinks, Boral climbs
• Why the JB Hi-Fi (ASX:JBH) share price surged 19% in March
• Here’s why ASX cannabis shares are lighting up today

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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The Altium Limited (ASX: ALU) share price could be a good one to think about right now.

Altium is a high quality business that provides software tools for the design process of the latest technology and items.

In February 2021, Altium reported its FY21 half-year result. It included a continuing operating revenue decline of 4% to US$80 million, expense growth of 3% to US$53 million, a 15% decline of earnings before interest, tax, depreciation and amortisation (EBITDA) to US$27 million and profit before tax fell 23% to US$20.7 million.

Altium said that the decline reflects the economic slowdown caused by extreme COVID-19 conditions in the US and Europe, and a challenging environment, post-COVID in China, for license compliance activities.

The CEO of Altium, Aram Mirkazemi, gave some thoughts about the rest of FY21:

While there is emerging optimism as COVID-19 vaccines are rolling out, we continue to view fiscal 2021 as a pre-vaccine year for our flight path to 2025. Therefore, in weighing stronger execution momentum expected for the second half with lingering macroeconomic uncertainty, our full year revenue guidance is at the lower end of the range, from US$190 million to US$195 million (ex-TASKING) and EBITDA margin in the range of 37% to 39%.

3 reasons why the Altium share price could be a buy

Financial strength and goals

Over the long-term, Altium is aiming to dominate and transform its industry. It’s looking to achieve US$500 million of annual revenue and have 100,000 subscribers over the next four or so years.

Despite the difficult operating conditions, Altium is still in a strong financial position. At the end of the half-year it had US$88.3 million of cash and is still debt free. It doesn’t capitalise its research and development expenditure. It still generated US$16.6 million of profit after tax and US$18.7 million of group operating cash flow.

It wasn’t as though it was all negative either – Octopart revenue grew strongly, rising 19% to US$10.8 million as electronic manufacturing rebounded during the half.

Altium 365

In the HY21 result, Altium 365 was a particularly bright spot and it carries a lot of the company’s hopes for the future with its cloud model and collaboration tools for engineers.

At the end of December 2020, Altium said it had 9,300 active monthly users and 4,400 monthly active accounts (up 83% and 69% respectively since July).

Mr Mirkazemi said:

Altium 365 is key to our future success through indirect monetization from our CAD software tools and, in time, direct monetization from the broader ecosystem. I am most heartened by the strong adoption of Altium 365 and, with our Netflix organisational changes behind us, I am confident of a much stronger second half. Early signs are positive for this.

Lower Altium share price

Just like any investment, the value of a potential idea is important. Since 21 October 2020, the Altium share price has fallen by around 33%. That means that the long-term value on offer from Altium shares could be better than most of the last six months.

According to Commsec, the Altium share price is valued at 43x FY23’s estimated earnings.

More reading

• 5 of the best ASX shares to buy after the Easter break
• Is the ASX tech sector in for more pain?
• Where to reinvest your Commonwealth Bank (ASX:CBA) dividends
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 2 ASX shares rated as strong buys by brokers

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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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It’s important that those investing in ASX shares keep up to date on current events, and what’s more current right now than chocolate? I’m sure many readers will be munching on an egg or two while reading this article. If that is the case, maybe its time to put your money where your mouth is and invest in some chocolatey ASX shares.

Here are 3 sugary shares you can find on the ASX.

Shares for chocolate lovers 

Candy Club Holdings Ltd (ASX: CLB) 

While not necessarily a chocolate making company, Candy Club deserves its spot on this list.

To be honest, a lolly subscription service is genius. And, experts do say to invest in companies you understand. I’m sure most Australians would understand the appeal of a box of lollies arriving on your doorstep each month.  

Candy Club’s selection of adorable sugary treats, some of which are indeed chocolate, may well be your next great investment.

Candy Club’s share price is experiencing a sugar high. It’s up more than 73% year to date, and 462.5% over the last 12 months. 

The company has a market capitalisation of around $69 million, with approximately 308 million shares outstanding. 

Keytone Dairy Corp Ltd (ASX: KTD)

Milk chocolate is a favourite for many come Easter time, and this dairy company has got you covered in more ways than just milk.

Keytone Dairy is the owner of fudging making brand, Gran’s. Gran’s promises delicious, handcrafted, luxury fudge. If that doesn’t sound like an Easter Sunday afternoon snack, I don’t know what does.

The Keytone Dairy share price has had a bit of a rough trot in March, so those who believe in chocolatey fudge may just find themselves a bargain.

Keytone Dairy has a market capitalisation of around $46 million, with approximately 273 million shares outstanding.

FFI Holdings Ltd (ASX: FFI)

FFI Holdings is possibly better known as Fresh Food Industries. The Australian owned and operated food supplier has been around since 1979. Generally a wholesaling company, you may not see too many of its chocolatey products on supermarket shelves. But, there’s a strong likelihood you’ve enjoyed them in muffins, cookies or ice creams in eateries all around Australia.

The company’s shares are up by 25% over the last 12 months.

FFI Holdings has a market capitalisation of around $64 million, with approximately 10 million shares outstanding.

More reading

• 3 stellar ASX growth shares to buy next week
• Brokers name 3 ASX shares to buy right now
• 3 exciting small cap ASX shares that could be destined for big things
• 3 outstanding ASX shares to buy and hold
• 3 reasons why Rural Funds (ASX:RFF) is a great ASX dividend share

Motley Fool contributor Brooke Cooper 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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Looking for a growth share or two to buy after the Easter break? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). It has been growing at a very impressive rate over the last few years thanks to the explosive growth in AI and ML spending. And while the pandemic has stifled its growth, the future remains very bright. With AI and ML markets expected to continue their strong growth for many years to come, Appen appears well-placed to deliver above-average growth over the next decade. Ord Minnett currently has a buy rating and a $24.75 price target on its shares.

Megaport Ltd (ASX: MP1)

Megaport is an elasticity connectivity and network services company. Its increasingly popular service allows businesses to increase and decrease their available bandwidth in response to their own demand requirements. This is instead of a user being tied to a fixed service level on long-term and expensive contracts. Demand for its service has been growing very strongly, leading to stellar recurring revenue growth. Goldman Sachs is a fan of Megaport thanks to its positive long term growth outlook. The broker has a buy rating and $15.55 price target on its shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a fast-growing donor management platform provider for the faith and not-for-profit sectors. It has been growing its earnings at a rapid rate over the last few years and more of the same is expected in FY 2021 following a very strong first half. Looking further ahead, Pushpay is targeting a 50% share of the medium to large US church market. This is a US$1 billion opportunity and many multiples of its current revenue. Given the quality of its offering and favourable industry tailwinds, it looks well-placed to achieve this. Goldman Sachs is also a fan of Pushpay. It currently has a buy rating and $2.59 price target on its shares.

More reading

• These were the worst performing ASX 200 shares in the Q1 of 2021
• 2 rapidly growing ASX tech shares to buy in April
• Is the ASX tech sector in for more pain?
• The FINEOS (ASX:FCL) share price is now 30% off its August highs
• 3 of the best ASX shares to buy in April

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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended MEGAPORT FPO and PUSHPAY FPO NZX. 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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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Galaxy Resources Limited (ASX: GXY)

According to a note out of Ord Minnett, its analysts have upgraded this lithium miner’s shares to a buy rating and increased the price target on them to $3.70. The broker made the move in response to a recovery in demand for lithium and stronger prices. In addition, it notes that the Galaxy share price has pulled back a touch, bringing it down to an attractive level for investors. The Galaxy share price ended the week at $2.71.

Telstra Corporation Ltd (ASX: TLS)

A note out of Morgan Stanley reveals that its analysts have upgraded this telco giant’s shares to an overweight rating with an improved price target of $4.00. According to the note, the broker is a fan of Telstra’s plan to split into three separate businesses. The broker expects the spin-off of its Tower to be a near term catalyst for its shares and sees other options to create value in the future. In light of this, Morgan Stanley is now confident that its dividend is sustainable at 16 cents per share for the foreseeable future. The Telstra share price was fetching $3.40 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $27.20 price target on this banking giant’s shares. Morgan Stanley has been looking at industry data and believes Westpac is well-placed for growth in the near term. It also estimates that the bank is outperforming its estimates when it comes to home loan growth. In light of this, it sees a lot of value in its shares at the current level. The Westpac share price ended the shortened week at $24.54.

More reading

• 2 ASX dividend shares to buy this April
• Commonwealth Bank (ASX:CBA) share price and weekly news wrap
• Why the Telstra (ASX:TLS) share price rose 11% in March
• 2 of the best ASX shares to buy for your retirement portfolio
• Why the Wesfarmers (ASX:WES) share price is up today

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra 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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At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three standouts are listed below. Here’s why they should be on your watchlist:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Damstra’s 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, Damstra reported a 29.6% increase in revenue to $13.3 million. Pleasingly, this is still only a small fraction of an addressable market which is expected to be worth US$20 billion by 2022.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider. Mach7’s software allows users to create a clear and complete view of the patient. This then helps them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. This could become particularly important in the current environment, where telehealth services are growing rapidly in popularity, creating a need for this type of technology. According to management, the company’s total addressable market is estimated to be US$2.75 billion. This gives it a long runway for growth over the next decade.

Pointerra Ltd (ASX: 3DP)

Pointerra is a growing technology company with a focus on the commercialisation of 3D geospatial data. The company’s software allows users to manage, visualise, and share large digital 3D datasets with ease. This is because its clever software is able to extract vital information from the data that would otherwise take many hours to do. Management believes that its addressable market opportunity is currently worth a massive $500 billion annually. One notable shareholder is well-respected tech investor, Bevan Slattery.

More reading

• The FINEOS (ASX:FCL) share price is now 30% off its August highs
• What’s happening with the Damstra (ASX:DTC) share price?
• 2 exciting small cap ASX shares with huge growth potential
• ASX tech shares cowering in shadow of NASDAQ bear market warning
• 2 small cap ASX shares to watch closely in 2021

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 recommends Damstra Holdings Ltd and MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended Damstra Holdings Ltd, MACH7 FPO, and Pointerra 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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If you’re looking for shares to buy and hold, then the three listed below could be quality options.

All three have long runways for growth and could provide strong returns for investors if everything goes to plan. Here’s what you need to know:

Cochlear Limited (ASX: COH)

The first ASX share to consider as a buy and hold investment is Cochlear. It is a global developer, manufacturer, and distributor of cochlear implantable devices for the hearing impaired. It appears well-placed for long term growth thanks to its exposure to the ageing population tailwind. This is because as people age their hearing will more often than not fade. This is expected to lead to increasing demand for its industry-leading products over the next couple of decades. Macquarie currently has an outperform rating and $245.00 price target.

Kogan.com Ltd (ASX: KGN)

This ecommerce company could be a good long term option for investors. This is due to the continued rise in online shopping, recent acquisitions, and quick growing Kogan Marketplace. Furthermore, with the Kogan share price down by over 50% from its high, investors are able to invest at a fraction of what people were paying just a few months ago. Credit Suisse sees this as a buying opportunity. Last month it put an outperform rating and $20.85 price target on its shares.

Nanosonics Ltd (ASX: NAN)

Another buy and hold option to consider is Nanosonics. It is the infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. Whilst I think this product alone has the potential to underpin solid earnings growth over the coming years, the impending launch of new products targeting unmet needs should give its growth a boost. UBS currently has a buy rating and $7.00 price target on its shares.

More reading

• These were the worst performing ASX 200 shares in the Q1 of 2021
• These were the worst performing ASX 200 shares in March
• 2 excellent ASX shares to buy and hold for a decade
• The Kogan (ASX:KGN) share price has nearly halved in 2021
• 2 ASX tech shares to buy in April 2021

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 Cochlear Ltd. and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Rural Funds Group (ASX: RFF) is a really good ASX dividend share and could be a great option for income investors to consider.

What is Rural Funds?

Rural Funds is a real estate investment trust (REIT) which owns farmland across Australia. It is quite diversified with different farm types including almonds, macadamias, vineyards, cattle and cropping (sugar and cotton).  

Why is it such a good ASX dividend share?

1: Yield

The most important thing for an ASX dividend share is the dividends, or distributions in Rural Funds’ case.

Rural Funds pays its distribution from the cash net rental profit each year. This measure is called the adjusted funds from operations (AFFO).

In FY21 it’s expecting to generate 11.7 cents of AFFO per unit and to pay a distribution of 11.28 for the financial year.

Then, in FY22, the ASX dividend share is expecting to pay a distribution of 11.73 cents per unit, which translates to a forward distribution yield of 5%.

It’s not a big starting yield, but it can be combined with growth.

2: Regular distribution growth

Rural Funds has an annual growth target for its distribution of 4%, which is comfortably more than inflation right now.

The business achieves this growth through a mixture of ways. The growth is achieved with rental indexation built into the contracts, productivity improvements and conversion of assets to higher and better use.

Rural Funds sees some of its rental indexation growth come from a fixed 2.5% annual increase, with the rest linked to CPI inflation, plus market reviews.

The ASX dividend share has a plan to develop 5,000 ha of macadamias, which is a higher and better use – this will help grow the AFFO in the coming years.

It also has a long weighted average lease expiry (WALE) of 11.1 years.

3: Diversification

It has good diversification. Its properties are spread across different farm types, geographic locations and climactic conditions.

A key to the stable performance of Rural Funds is that it has high-quality tenants which are large and have strong market positions.

It has tenants like JBS, Australian Agricultural Company Ltd (ASX: AAC), Stone Axe, Treasury Wine Estates Ltd (ASX: TWE), Olam, Select Harvests Limited (ASX: SHV) and Queensland Cotton.

Rural Funds share price valuation

In the FY21 half-year result, the ASX dividend share’s adjusted net asset value (NAV) increased by 4% to $2.01 up from FY20.

That means the Rural Funds share price is valued at a 16% premium to the adjusted NAV.

More reading

• 2 ASX dividend shares to buy this April
• Top ASX shares to buy in April 2021
• 2 top ASX dividend shares to buy this month
• ‘Remarkable resilience’ in Aussie farmland a tailwind for ASX agriculture shares
• 2 ASX dividend shares to buy in April

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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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