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Despite the recent stock market rally, buying shares to make a passive income could be a logical strategy.

In many cases, they offer high dividend yields versus other assets. They may also be able to deliver dividend growth, as well as capital growth, as the world economy likely recovers from its present woes.

As such, now could be the right time to buy a diverse range of income shares and hold them over the long run.

A generous passive income from shares

Even though many shares now trade at significantly higher prices than they did following the 2020 market crash, a number of companies offer high yields relative to other assets.

Certainly, a low-interest rate environment makes this task easier for equities. However, some stocks have dividend yields at the present time that are higher than their historic averages. This suggests that they could offer an attractive income stream over the long run.

Of course, there is never any guarantee that a company will maintain recent dividend payouts in future. A whole host of challenges can crop up that causes them to reduce or even cancel shareholder payouts.

However, by purchasing a wide range of dividend shares with high yields, it may be possible to build a resilient and generous passive income stream at the present time.

Dividend growth opportunities

As well as high yields, a number of shares could offer a growing passive income in the coming years. The world economy has always recovered from its declines to post positive growth in the past. Although the same outcome can never be assumed, the scale of monetary policy stimulus already announced suggests that a return to growth is likely to be ahead.

Through buying companies with affordable dividends and the potential to deliver rising profitability in the coming years, it is possible to obtain a growing income return.

This may become increasingly important over time since low interest rates and quantitative easing in some major economies could spark a period of higher inflation in the long run.

Capital growth opportunities

As well as the potential for a high and growing passive income, dividend shares could deliver capital growth in the coming years. They could experience high demand as a result of limited opportunities to make a worthwhile income in other mainstream assets. This may drive their prices higher.

Furthermore, a high yield can indicate that a stock offers good value for money and a wide margin of safety. Buying undervalued shares has been a relatively sound means of capitalising on the stock market’s long-term growth potential.

As such, now may be the right time to buy dividend shares, since they could produce higher total returns than the wider stock market over the long run.

More reading

• Is this the best small cap ASX share to buy now?
• Why the IAG (ASX:IAG) share price is one to watch today
• Telstra (ASX:TLS) share price on watch following NZ update
• Is the CSL (ASX:CSL) share price on the road to recovery?
• Is it time to buy HUB24 (ASX:HUB) and Netwealth (ASX:NWL) shares?

Motley Fool contributor Peter Stephens 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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Are you a fan of small cap shares? If you are, then you might want to take a look at the one listed below.

This small cap is growing very quickly and has been tipped to have bright futures. Here’s what you need to know about it:

Nitro Software Ltd (ASX: NTO)

Nitro Software is a growing software company that is helping to drive digital transformation in businesses around the world.

The company’s key solution is the Nitro Productivity Suite. It provides integrated PDF productivity, eSignature, and business intelligence tools to customers via a horizontal, software-as-a-service and desktop-based software suite.

Management notes that its software is highly scalable, serving large multinational enterprises and government agencies, as well as small businesses and individual users.

At the last count, the company had sold over 2.6 million licenses and had 11,700 Business Customers across 154 countries. Among these are 68% of the 2019 Fortune 500 and three of the 2019 Fortune 10.

FY 2020 performance

Last month Nitro released its full year results and revealed annual recurring revenue (ARR) of $27.7 million. This was up 64% year on year and ahead of its upgraded guidance range of $26 million to $27 million.

Positively, another strong performance is expected in FY 2021.

With its results, management provided FY 2021 ARR guidance of be between $39 million and $42 million. This will mean year on year growth of between 41% and 51.6% in FY 2021.

Is the Nitro share price in the buy zone?

According to analysts at Morgan Stanley, the Nitro share price is in the buy zone right now. Earlier this month, the broker retained its overweight rating and lifted its price target to $3.70.

Based on the latest Nitro share price of $2.55, this implies potential upside of 45% over the next 12 months.

Morgan Stanley believes management’s guidance is conservative and sees scope for the company to outperform it.

More reading

• 2 small cap ASX shares you need to know about
• Leading brokers name 3 ASX shares to buy today
• 2 small cap ASX tech shares trading at a big discount
• Here’s why brokers like these 2 small cap ASX tech shares
• 2 buy-rated small cap ASX shares with strong growth potential

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

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The Insurance Australia Group Ltd (ASX: IAG) share price is one to watch in early trade. Shares in the Aussie insurer could be on the move after a perils update following recent floods in Queensland and New South Wales.

Why is the IAG share price in focus?

IAG this morning provided an update on its FY21 natural perils claim costs. Widespread flooding and storm damage after heavy rains in south-east Queensland and northern New South Wales have increased claims for the Aussie insurer.

IAG received ~8,000 claims by 4pm on 25 March 2021 following the heavy rains. That is expected to rise further, the company added in today’s release. The claims are predominantly for property damage.

CEO and managing director Nick Hawkins said, “Teams are on the ground supporting customers in the worst impacted areas”. IAG has increased its call centre capacity while the group’s dedicated major events team is managing claims.

It will be interesting to see how the IAG share price responds following the company’s update on the estimated net cost. IAG is forecasting an approximate $135 million net cost impact, with net cost capped at $169 million. That cap comes from the maximum event retention (MER) for a first event under the group’s 2021 catastrophe reinsurance program.

Following the March event, IAG is estimating FY21 net natural perils claim costs of ~$660 million to $700 million. That is higher than the $658 million perils allowance for the period. Those figures comprise the $375 million for the 8 months to 28 February 2021, the estimated March impact and $150 million to $190 million for further peril events from March to June 2021.

IAG estimated MER at 26 March 2021 remains unchanged at $169 million. The insurer has FY21 aggregate cover that provides $350 million of protection in excess of $400 million. The heavy rain and flooding is expected to remove $150 million from IAG’s $400 million deductible.

Foolish takeaway

The IAG share price will be one to watch in early trade following today’s update. Shares in the insurer have fallen 21.7% in the last 12 months but edged 1.6% higher in 2021 in line with the S&P/ASX 200 Index (ASX: XJO).

More reading

• 8 ASX 200 shares rated as ‘outperform’ by brokers
• How are ASX insurance share prices performing during NSW’s floods?
• QBE (ASX:QBE) share price falls on Greensill update
• Brokers name 3 ASX shares to buy right now
• IAG (ASX:IAG) share price could jump with this other ASX share after a broker upgrade

Motley Fool contributor Ken Hall 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 Telstra Corporation Ltd (ASX: TLS) share price will be on watch on Friday morning.

This follows the release of an announcement relating to its New Zealand listing.

What did Telstra announce?

This morning the telco giant revealed that its Board has decided to delist from the New Zealand stock exchange (NZX) and move to a sole listing on the ASX.

According to the release, the trading of Telstra shares on the NZX will cease at the close of business on Wednesday 16 June 2021.

After which, Telstra’s NZX shares will be transferred to the ASX and will commence trading on Monday 21 June 2021.

Why is it doing this?

Telstra explained that it was making the change partly to streamline its shareholder services and notes that New Zealand investors now have easy access to the ASX.

It explained: “Telstra is looking to simplify its administration and streamline its shareholder services. Telstra shareholders on the New Zealand register have been reducing over time and, given the accessibility of the ASX to New Zealand-based shareholders, Telstra considers that delisting from NZX is an appropriate step. Moving to a single listing on the ASX will progress these goals and we believe this is in the best interests of shareholders and the company.”

What impact will this have on shareholders in the future?

The company explained that there will be virtually no impact to both ASX and NZX shareholders from this.

In fact, when it comes to Telstra’s generous 16 cents per share fully franked dividend, the company will continue to pay this to shareholders in both currencies.

It commented: “Telstra will continue to pay dividends in Australian or New Zealand dollars. Shareholders must have either Australian or New Zealand bank account details registered by the dividend record date to be paid in that currency.”

More reading

• Don’t ever buy defensive shares: fundie
• 2 highly rated ASX dividend shares to buy today
• Why is there no ASX All Ordinaries ETF?
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• Could a restructure spell a new era for the Telstra (ASX:TLS) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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The CSL Limited (ASX: CSL) share price has rebounded strongly since hitting a 52-week low of $242.00 in early March. The company is pushing forward with its locally manufactured COVID-19 vaccine rollout and implementing initiatives to restore plasma collections levels.

By yesterday’s market close, the global biotech’s shares finished the day 1.4% higher at $269.83.

With the latest developments, is the CSL share price finally on the road to recovery? Let’s take a look at what’s been happening for the biotech giant.

Vaccine update

Investors have buying CSL shares ahead of renewed optimism that the worst is behind the company.

According to the Australian Therapeutic Goods Administration (TGA), the first four batches of Melbourne-manufactured AstraZeneca COVID-19 vaccine have been released. This follows the TGA’s approval of the first 832,200 doses that were cleared Tuesday night. So far, almost 350,000 people in Australia have received a COVID-19 vaccination.

On Monday, the country moved to expand its COVID-19 vaccine eligibility to phase 1b group. This now includes elderly adults aged over 70 years, indigenous Australians, adults with pre-existing medical conditions, and other healthcare workers. However, there have been reports that general practitioner clinics have been overwhelmed with patients seeking the vaccine.

Despite the teething problems, it’s expected that, in the coming weeks, these concerns will ease. CSL plans to produce 1 million AstraZeneca COVID-19 vaccines each week up to a total of 50 million doses.

What about plasma collections?

While plasma collections have been heavily impacted by COVID-19, CSL has implemented a number of initiatives to incentivise blood donations. These include the use of social media influencers and the increase of donor compensation to as much as $700 per month. In addition, the company revealed plans to open up 12 new collection centres during the first half of FY21.

As world governments hastily inoculate their populations against COVID-19, experts predict that social norms will gradually return sometime in late 2021 to early 2022. Thus, if restrictions in the movement of people are lifted, CSL could find increasing numbers of blood donors returning to its collection centres.

CSL share price summary

The CSL share price has lost nearly 11% of its value when compared to this time last year. Year to date, the company’s shares are down by around 5%. CSL shares are also currently trading nearly 19% off their 52-week high of $332.68 reached in April last year.

On valuation grounds, CSL commands a market capitalisation of roughly $122.8 billion, with more than 455 million shares outstanding.

More reading

• 2 blue chip ASX 200 shares that could be strong buys
• Top brokers name 3 ASX shares to buy today
• Down 18%: Is the CSL (ASX:CSL) share price a buy?
• Is now the time to invest into the CSL (ASX:CSL) share price?
• How to counter the ASX 200’s Achilles heel

Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.

The post Is the CSL (ASX:CSL) share price on the road to recovery? appeared first on The Motley Fool Australia.

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Thursday was a day to forget for the HUB 24 Ltd (ASX: HUB) share price and the Netwealth Group Ltd (ASX: NWL) share price.

The shares of these wealth management platform providers fell 14% and 13.5%, respectively, following the release of an announcement out of the latter.

What was the announcement?

Netwealth announced that its agreement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) in relation to the interest payable on the total pooled cash transaction account will be terminated in 12 months.

The agreement currently provides a margin of 95 basis points above the overnight cash rate.

While no comments were made in relation to why it was being terminated, it appears as though the bank felt this was a bit rich in the current environment.

Netwealth is now negotiating with ANZ and other banks on a new deposit arrangement to replace this one when it expires.

Is this bad news for HUB24 and Netwealth?

Analysts at Goldman Sachs appear to believe the selling on Thursday was a bit of an overreaction by investors.

While the broker acknowledges that the new terms will be less favourable and have an impact on earnings, that impact isn’t expected to be as great as their share price declines would indicate.

It also notes that it removes an element of uncertainty that has been hanging over both companies.

What did Goldman Sachs say?

Goldman said: “…domestic banks can raise retail term deposits in even the most competitive segments at around 30bps currently, and 3-5 year wholesale funding at around 50bps. As such NWL’s 95bps contract was becoming relatively expensive funding for ANZ, and in considering these spot datapoints plus a relationship overlay, we now assume NWL / HUB move to a cash rate+50bps arrangement in coming years. NWL’s announcement would suggest it is likely to maintain a similar model for cash balances, noting that it should recover c.40bps of recent spread compression as the cash rate recovers toward 50bps.”

“On balance, we downgrade EPS by 0%/-4%/-15% in FY21-FY23E for NWL, and -1%/-2%/-10% for HUB, where we expect HUB’s deposit contract should insulate earnings for a little longer than NWL’s.”

Is this a buying opportunity?

The broker has retained its neutral rating and reduced its price target on Netwealth’s shares to $15.18. This compares to the current Netwealth share price of $13.78.

Whereas for HUB24, it has retained its buy rating and trimmed its price target down to $24.58. This compares to the latest HUB24 share price of $20.85.

Goldman concluded: “Risk to cash balance earnings has been the key focus point for the market in recent months and, outside of valuation the only consistent concern most investors have had with the segment.”

“While the downgrades are not insignificant, the FUMA growth profile we envisage is strong enough such that we still model earnings growth in the periods where cash spreads reset. To this end, with the cash balance overhang (somewhat) addressed, we would expect the market to refocus on the medium term outlook for FUMA growth and margin optimisation, both of which remain encouraging.”

More reading

• ASX 200 rises, Brickworks builds, Netwealth sinks
• Why Airtasker, Netwealth, Piedmont Lithium, & Resolute Mining are tumbling lower
• ASX 200 up 0.3%: Brickworks impresses, Resolute hammered, Netwealth crashes
• Why the Netwealth (ASX:NWL) share price is sinking 15% lower today
• Why the Hub24 (ASX:HUB) share price is firing up 12% today

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 Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is it time to buy HUB24 (ASX:HUB) and Netwealth (ASX:NWL) shares? appeared first on The Motley Fool Australia.

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The Advance Nanotek Ltd (ASX: ANO) share price will be one to watch today. The zinc-oxide powder producer released an announcement to the market yesterday, only minutes before the ASX closed.

In the update, Advance Nanotek confirmed the receipt of its manufacturing license from the Therapeutic Goods Administration (TGA).

The Advance Nanotek share price was trading at $4.16 a share at yesterday’s close, up 1.22% for the day.

Preparation for a sunny season

According to the release, the company has received the necessary TGA Manufacturing License for its production facility in the Brisbane suburb of Rocklea.

This comes just over a week after the company advised it was expecting TGA approval for 18 zinc-based dispersions and 4 new sunscreen products. In that same announcement, Advance Nanotek divulged it was expanding into bulk intermediate sunscreen production. At the time, the company anticipated TGA approval for four bulk SPF50+ intermediate sunscreen products within two weeks.

The latest announcement confirms the company can now manufacture all of the aforementioned products in Brisbane. Currently, 6 vegan/organic zinc and zinc-based powders already have TGA approval for the product itself. Additionally, the 4 new bulk intermediate products are still under development.

Perhaps a point of difference, all products manufactured are non-nano, gluten-free, and have no preservatives. Advance Nanotek said it would start manufacturing immediately and actively promote sales of these products to its global distribution network.

Interestingly, the company noted it does not expect a material revenue impact until FY22.

It’s been cloudy for the Advance Nanotek share price

The COVID-19 impacts linger for Advance Nanotek, as travel remains more broadly halted. Although the company’s zinc oxide chemicals have widespread applications, sunscreen is the main focus. While international borders remain locked, not too many people are going on their sunny beach vacations. Hence, the demand for sunscreen has slumped over the past 12 months. 

Despite the implication, the Advance Nanotek share price has returned 8% in the last year. However, it has been one wild ride to get there, with violent sways between $5.94 to $2.92.

Additionally, 8% is still underperforming the S&P/ASX 200 Index (ASX: XJO) return of 36% over the same timeframe. 

More reading

• Sun shines on the Advance Nanotek (ASX:ANO) share price today
• Why Advance Nanotek, BHP, Limemade, & Metcash shares are sinking
• ASX stock of the day: Why Advance Nanotek (ASX:ANO) shares are rocketing 7%

Mitchell Lawler owns shares of Advance NanoTek Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Advance NanoTek Limited. 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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Retail investors have been warned not to buy into “defensive” shares, as they serve no useful purpose for long-term portfolios.

Marcus Today director Marcus Padley told subscribers to his newsletter that defensive stocks such as supermarkets and utilities don’t add any value in the long run.

Professionals only buy them because they need to constantly report on their performance, which incentivises short-term damage control.

“Defensive stocks will not serve you well at any time,” he said.

“Leave them to the fund managers that concern themselves with their own relative — not actual — performance.”

He took the example of A2 Milk Company Ltd (ASX: A2M), Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW) going gangbusters during the COVID-19 crash last March.

“They had a ‘moment’ of outperformance,” Padley said.

“But in the recovery they have been some of the worst performers.”

Losing less isn’t the goal, gaining more is

Padley said that the aim of investing is not to lose less during a correction — but to gain more in the long run.

And defensive stocks are antithetical to reaching that goal.

“For an individual investor there is almost no point at which you would want to buy a ‘defensive’ stock,” he said.

“They make less money in the recovery and there is no point holding the stock that loses you less money in a correction.”

You won’t predict the bottom, so don’t even try

Another reason to avoid defensive stocks is that no one is able to predict when the market has bottomed out. Therefore there is no way of knowing when to sell out of the defensive shares to put the money back into the recovery-positive businesses.

“Do not think you will be so clever as to predict the end before it happens,” said Padley.

“No-one knows when corrections are coming — and those that did, didn’t know for sure. They just made a fuss when they discover (in hindsight) that they made the right noises at the right time.”

Frazis Capital portfolio manager Michael Frazis said this week that it’s too simplistic to say the current share market correction is directly due to rising inflation and interest rates.

“Things ran really hot then they came back. I feel like that’s more the answer — it just coincided with a rise in interest rates and recovery,” he said in his podcast.

“The link is not one-to-one. It’s not like interest rates rise and stocks fall or vice versa. It’s much more complicated than that.”

But even if you took the simplistic view, Frazis contended it’s better to stick with shares with good long-term growth prospects. 

“Any kind of recession or if anything goes wrong, those interest rates are going to come down very fast,” he said.

“If there’s a sharp fall in equities that coincides with that shock, the rebound in fast-growing tech companies will basically move irrespective of the economic cycle.”

More reading

• 2 ASX 200 blue chip shares to buy
• 2 highly rated ASX dividend shares to buy today
• Why is there no ASX All Ordinaries ETF?
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• How are ASX 200 shares faring in the carbon revolution?

Motley Fool contributor Tony Yoo owns shares of A2 Milk. The Motley Fool Australia owns shares of and has recommended A2 Milk and Telstra Limited. The Motley Fool Australia owns shares of Woolworths 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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The Chorus Ltd (ASX: CNU) share price is in focus this morning after a pre-market announcement from the company. Shares in the Kiwi telecommunications infrastructure group will be on watch after the price-sensitive update on its Initial Asset Value (IAV) model.

Why is the Chorus share price on watch?

Chorus will today submit its “comprehensive” Initial Asset Value model to the Commerce Commission. This is all part of the New Zealand agency’s price-quality process for new regulation. Chorus will be subject to the new regulations as a key New Zealand fibre service provider.

It will be interesting to see how the Chorus share price performs following today’s update and presentation. Chorus has forecast a starting Regulated Asset Base (RAB) of $5.5 billion.

That $5.5 billion would be as at 1 January 2022 comprising $4.0 billion in base RAB + $1.5 billion in financial loss assets. 

Draft decisions are due in Q2 2021 with final decisions including final price-quality and Chorus expenditure by Q3 to Q4 2021. Post-final implementation of the regulatory framework is targeted for 2022 including determination of the financial loss asset.

The financial loss asset captures the unrecovered returns of Chorus and other fibre service providers. This will help to compensate providers for lost revenue in the initial ramp-up phase of ultra-fast broadband (UFB) networks.

Similar to the National Broadband Network (NBN) rollout here, there is forecast to be a supply-demand mismatch in the initial phases as the network is established but not yet widely sought or used.

Shares in the Kiwi telco services group were down 5.5% in 2021 to $6.87 per share at yesterday’s close. However, on a 5-year basis, the Chorus share price has surged 88.7% higher to a $3.1 billion market capitalisation.

Foolish takeaway

The Chorus share price is one to watch in early trade after the company’s latest update. That includes a new estimate for the all-important financial loss asset as the Kiwi regulators consider their next move.

More reading

• 2 ASX 200 blue chip shares to buy
• 2 tech ETFs delivering strong long-term returns
• Why is the ASX 200 (ASX:XJO) so reliant on the US stock market?
• 2 great value ASX growth shares to buy today
• 3 ASX shares this top fund managers thinks are buys

Motley Fool contributor Ken Hall 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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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then I would suggest you check out the two listed below.

These quality companies could have the potential to grow at a solid rate over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

REA Group Limited (ASX: REA)

REA Group could be a blue chip ASX 200 share to buy right now thanks to the improving housing market.

This property listings company has been a solid performer over the last few years despite battling tough trading conditions.

So with the housing market now improving, mortgage loan growth accelerating, and house prices rising, REA Group has the wind in its sails once again.

And thanks to cost cutting, new revenue streams, its market dominance, and potential price increases, the company’s earnings growth has been tipped to accelerate over the coming years.

Earlier this week analysts at Macquarie upgraded the company’s shares to an outperform rating with a $171.70 price target. It believes REA Group’s strong market position will allow it to lift prices and capture a greater share of marketing budgets.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share for investors to consider is retail giant Woolworths. It could be a good option right now due to the favourable outlooks for its key businesses. These include BIG W, BWS, Dan Murphy’s, and the jewel in the crown, Woolworths supermarkets.

Analysts at Macquarie are also fans of Woolworths. Following its solid half year update last month, the broker put an outperform rating and $44.50 price target on its shares.

It was pleased with Woolworths’ result and believes the company’s investment in its online businesses will continue to drive further growth. It also notes that the Endeavour Drinks business is expected to be demerged in June, which could unlock value for shareholders.  

More reading

• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• How are ASX 200 shares faring in the carbon revolution?
• REA Group (ASX:REA) share price jumps on broker upgrade news
• ASX retail shares beware: Aldi e-commerce is coming
• How to counter the ASX 200’s Achilles heel

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended REA Group 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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