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The S&P/ASX 200 Index (ASX: XJO) has opened boldly this morning, up a healthy 1.79% to 6,831 points at the time of writing. A large part of this jump is being attributed to some news out of the United States over the weekend. And no, it’s not the Prince Harry/Meghan Markle interview with Oprah.

According to a report in the Australian Financial Review (AFR) yesterday, the US Senate has approved a massive US$1.9 trillion stimulus package focused on coronavirus relief. That was along party lines. President Biden’s Democratic Party and the Republican Party each controlling 50 votes in the chamber.

The bill will now go to the House of Representatives for final approval before it makes its way to the desk of US President Joe Biden. The bill passed the Senate on a line-ball vote — 50 votes to 49. It is expected to easily pass when it is debated on Wednesday (our time). That’s because the Democrats have a larger majority of 11 in the House. If all goes to plan, President Biden will be signing the bill into law before the end fo the week. If this does happen as expected, it will be a major victory for the US President. As well as a fulfilment of a key election promise.

Why are markets excited about this Biden stimulus?

The share market is excited about this news simply because of the sheer size of the economic stimulus that is about to enter the world’s largest economy. According to the US Department of Commerce, the United States’ total gross domestic product (GDP) last year was US$20.93 trillion in 2020, meaning this package alone is worth 9.1% of the total US economy.

The package will consist of a new round of ‘stimulus cheques’, each worth US$1,400 for “low and middle-income Americans”. Those cheques come on top of the round of US$600 cheques that Congress approved back in December.  It will also include new child tax benefits, higher unemployment payments, and money for hospitals and vaccine rollout acceleration. Payments to state and local governments are also part of the package. Democrats didn’t get all of what they wanted though. The proposed hike in the US minimum wage to US$15 an hour was not included in the final bill. That was despite protests from some of the more progressive Democrats like Sen. Bernie Sanders.

Democrats had promised a package of this scope in the run-up to the Georgia Senate elections last year (which came after the presidential election). Parts package were also part of Joe Biden’s election manifesto.

All of this extra cash looks set to make its way into the US economy within weeks. And that is why investors are excited about this deal. It is likely to mean more money comes through the tills of most US-based companies. And since the ASX tends to get excited (and depressed) about anything the US markets do, we are also feeling the love this morning.

More reading

• Why the Santos (ASX:STO) share price is down this morning
• This unexpected second COVID boom will lift these ASX shares in 2021
• 5 ASX shares to buy in a market crash
• Why the Omni Bridgeway (ASX:OBL) share price is one to watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021

Motley Fool contributor Sebastian Bowen 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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Afterpay Ltd (ASX: APT) announced its highly-anticipated H1 FY21 results on 25 February.

The results highlight classic Afterpay growth. This falls across all key metrics including a 106% increase in underlying sales to $9.8 billion and a 521% surge in earnings before interest, tax, depreciation and amortisation (EBITDA) to $47.9 million. 

Despite the strong results, the Afterpay share price is down 25%. This fall has come since its record all-time highs of $160.05 set on 11 February. Its bleeding continued last week, falling by about 5% to close at $115.40. 

Results and share price performance aside, there was one update that might have flown under the radar. 

Meet Afterpay Money v1.0 

Afterpay Money is a new stand-alone app built with Millennials and Gen Z in mind. The key purpose of the app is to help Australians manage their money. 

The app aims to compete as a primary money management app. It comes complete with a linked debit card and other classic banking features. Users can add new cards into the digital wallet and a salary can be paid into the account directly. Additionally, money can be transferred to other financial accounts and up to 15 savings goals can be created.

The app will also link with an Afterpay account. Furthermore, savings and Afterpay buy now pay latter account information will all be in one spot. Afterpay will also introduce a loyalty program that includes premium merchant offers and no payment upfront.

Afterpay aims to leverage its rich data insights from its Westpac Banking Corp (ASX: WBC) partnership. In addition to internal data to inform customers about budgeting opportunities and personalised merchant offers. 

The Afterpay Money app is on track to formally launch in Q1 FY22.

Brokers run the ruler on the share price 

Brokers have pushed the breaks on upgrading the Afterpay share price due to increasing competition, a stretched valuation, and rising risks. 

Ord Minnett appears to be the most bullish broker on the Afterpay share price with a buy rating and $150.00 price target on 1 March. The broker was pleased with growth across Northern American and UK regions. In addition to the value that Afterpay Money could bring. 

Citi flagged the increasing risks such as slowing e-commerce sales post-COVID and rising competition. Despite the broker’s reserved commentary, it was upbeat on Afterpay Money as a catalyst for new products and features. Taking into consideration both the risks and catalysts, Citi maintained a cautious neutral rating with a $124.80 price target on 3 march. 

More reading

• The Zip (ASX:Z1P) share price is down 34% in less than a month
• Why interest rates matter for ASX 200 shares
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 5 things to watch on the ASX 200 on Monday
• ASX 200 drops again, Zip sinks, Worley wins

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. 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 Why this new app has brokers excited for the Afterpay (ASX: APT) share price appeared first on The Motley Fool Australia.

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The Santos Ltd (ASX: STO) share price has dropped this morning after an update from the Aussie oil and gas group.

Why is the Santos share price in focus?

The Santos share price is down 2.3% after announcing a significant sale by its largest shareholder.

ENN Group has sold 107.1 million shares or 5.14% of those on issue at $7.33 per share. The Santos share price closed at $7.76 per share on Friday with a $16.2 billion market capitalisation.

ENN’s sale received “strong support” from institutional shareholders in the oversubscribed process.

ENN reportedly remains “fully supportive” of Santos’ strategy and future direction. The infrastructure investment group also remains Santos’ largest shareholder following the sale. That includes retaining a 9.97% stake in the Aussie oil and gas producer.

The reduced shareholding does mean that a 2017 strategic relationship agreement with ENN covering board representation and other matters is no longer effective. ENN-nominated director Mr Eugene Shi will therefore resign from the board following the sale.

What else is happening for the ASX energy share?

The Santos share price began 2021 in strong fashion. Shares in the Aussie energy group have jumped 20.7% higher to $7.76 per share at Friday’s close. That translates to a 58.7% gain over the last 12 months despite volatile oil prices.

It’s worth keeping an eye on the Aussie energy group this morning for another reason. 

The S&P/ASX 200 Index (ASX: XJO) was tipped to open higher this morning according to the latest SPI futures. That, combined with strengthening crude oil prices on Friday night, will make the Santos share price worth watching in early trade.

According to Bloomberg, the WTI crude oil price rose 3.5% to US$66.09 a barrel and the Brent crude oil price climbed 3.9% to US$69.36 a barrel.

The latest price surge was largely driven by OPEC holding firm with production cuts and strong US economic data.

More reading

• This unexpected second COVID boom will lift these ASX shares in 2021
• 5 ASX shares to buy in a market crash
• Why the Omni Bridgeway (ASX:OBL) share price is one to watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff

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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In morning trade the Coles Group Ltd (ASX: COL) share price is pushing higher.

At the time of writing, the supermarket giant’s shares are up 2% to $15.80.

This means the Coles share price has now limited its year-to-date decline to just under 15%.

Is the Coles share price in the buy zone?

According to a note out of Goldman Sachs, its analysts believe the recent weakness in the Coles share price is a buying opportunity for investors.

This morning the broker reaffirmed its buy rating and $20.70 price target on the company’s shares.

Based on the current Coles share price, this price target implies potential upside of 31% over the next 12 months. And if you include dividends, this stretches to approximately 35%.

What did Goldman say about Coles?

There are a few reasons that Goldman Sachs is positive on the company. One of those is its smarter selling program. It commented:

“The smarter selling cost out program continues to be in important medium-term support to earnings with another A$250mn in gross cost out forecast by management in FY21. Although there is some concern in the market around the lower sales trends at COL leading to a potential price war, we see the cost out as a key differentiator in margin performance ahead of some longer-term efficiency programs.”

And while Coles is underperforming rival Woolworths Group Ltd (ASX: WOW), Goldman appears optimistic that this gap will narrow in FY 2022.

“COL has underperformed WOW from a comparable store sales perspective by ~1.8% over the last three quarters. After adjusting for the divergent start in 3Q20 and store rollout, this growth differential persisted into 3Q21. WOW’s superior execution and stronger online focus is delivering consistent above market sales performance, however we expect this relativity to converge over FY22 as smarter selling initiatives deliver improvements in execution.”

Looking long term, the broker believes that Coles is well-placed to benefit from the automation of its supply chain.

“The key long-term theme for COL is the step change in efficiency the company will derive as it automates its supply chain with the Witron installations starting in SEQ and NSW. While this program will not begin to impact performance until FY24, management appear to be getting more confident about the benefits to longer-term competitiveness.”

Overall, with its shares trading at 20x estimated FY 2021 earnings, it sees a lot of value in them at the current level.

More reading

• Leading broker upgrades Woolworths (ASX:WOW) shares to buy rating
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 2 ASX dividend shares with attractive yields to buy this week
• Leading broker names 2 ASX dividend shares to buy next week
• Australian Primary Hemp (ASX:APH) share price surges. Here’s why.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and 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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Some ASX shares could benefit from a second post-COVID-19 boom, according to Jarden.

The broker analysed the latest Medicare data and is predicting a COVID baby boom this year.

This coincides with a ramp-up in economic growth from government stimulus and receding threats posed by the pandemic.

COVID baby boomers

The number of early-stage ultrasounds for those who are within the first 16-weeks of their pregnancies have risen materially.

“Looking at the number of benefits paid across four Medicare items (covering <12 week and 12-16 week ultrasounds), shows a notable rise in the number of scans since Apr-20,” said Jarden.

“While the peak in Jul-20 was likely elevated due to catchup from earlier COVID-19 delays, the fact that ultrasounds have averaged +12% y/y since then suggests it is more than a blip.”

Not all ASX shares can benefit from COVID baby bump

Rising population growth is a positive for ASX shares and the broader economy. But don’t get excited just yet.

The thing is, the rise in births isn’t likely to offset the collapse in migration due to the global pandemic.

“Indeed, even assuming a 10% y/y rise in births over 2021 (which fades by end-22), population growth is still likely to be just 0.5% y/y in 2021 and 0.7% over 2022,” said Jarden.

“This compares to FY21 Budget forecasts of 0.3% / 0.6%, down from 1.5% pre-COVID.”

This means the baby bump won’t translate to a wide-spread tailwind for the S&P/ASX 200 Index (Index:^AXJO).

Clucky-lucky ASX shares

However, this isn’t to say there won’t be ASX winners from this thematic. The Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) share price is one beneficiary.

The hospital operator had noted an increase in maternity bookings when it released its latest profit results. Ramsay reported record bookings for the months of March and April.

This trend could persist as households have more disposable income coming out of the pandemic. This may prompt more expectant mums to opt for private hospitals instead of public ones.

The broker estimates that maternity represents around 7% of Ramsay’s Australian hospital revenues. Growth in maternity revenue is tipped to return to around 5%.

More than a baby boost

Another baby boom winner is the Baby Bunting Group Ltd (ASX: BBN) share price. Since infant products retailing giant Toys ‘R’ Us collapsed in 2018, Baby Bunting has grown into the dominant chain in this country.

Retailers have already enjoyed strong sales from cashed-up consumers who can’t spend on holidays. Baby Bunting will get an additional boost from clucky Aussies.

More reading

• 5 ASX shares to buy in a market crash
• Why the Omni Bridgeway (ASX:OBL) share price is one to watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia has recommended Ramsay Health Care 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 Recce Pharmaceuticals Ltd (ASX: RCE) share price is pushing higher on Monday morning.

At the time of writing, the synthetic anti-infectives focused biotechnology company’s shares are up 3% to $1.01.

Why is the Recce share price pushing higher?

Investors have been buying Recce shares this morning after it announced the successful dual listing of its shares on the Frankfurt Stock Exchange in Germany. This will see the company’s shares hit the Frankfurt bourse at the opening of trade at 8am central European time today.

According to the release, the dual listing was possible without many of the normal primary listing procedures. This means the company will benefit from a widening of its investor reach with minimal cost.

In addition, there was no associated capital raising for this listing or issuance of new securities. This was due to the company’s strong existing financial position and the fact that it is listed and market-makable via the ASX.

Management commentary

Recce’s Chairman, Dr. John Prendergast, appeared delighted with its dual listing.

He commented: “Dual-listing on the Frankfurt Stock Exchange is a wonderful new chapter in our global strategy. As the third largest stock exchange in the world, it sees the connection of EU biotech and overseas capital with the Company’s New Classes of Synthetic Anti-Infectives development program.”

The company’s investor and corporate relations advisor in Europe, Deutsche Gesellschaft Für Wertpapieranalyse (DGWA), spoke very positively about the listing. It appears to believe Recce will be an attractive investment option for European investors.

DGWA’s CEO, Stefan Müller, said: “DGWA are thrilled to be working with Recce in Europe. Investor interest in quality biotechnology companies is significant and increasing with the global anti-infective market expected to grow at a compound rate of over 30% to 2030 and anticipate this German listing will provide EU investors an opportunity to participate in that growth. We are confident Recce will be warmly welcomed among the European investment community and look forward to supporting their activity in the region over the time ahead.”

More reading

• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher
• Why the Recce Pharmaceuticals (ASX:RCE) share price is rocketing 10% higher

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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Last week was a rollercoaster ride for ASX 200 shares, with the S&P/ASX 200 Index (ASX: XJO) running as high as 2.70% by Tuesday afternoon before closing the week just 0.30% higher.

This wild performance was driven by weaknesses in sectors including the S&P/ASX Health Care (INDEXASX: XHJ), S&P/ASX Information Technology (INDEXASX: XIJ) and S&P/ASX Materials (INDEXASX: XMJ) which fell a respective 4.46%, 2.30% and 2.76%. Much of the underperformance in the tech and growth sectors was dragged down by increasing concerns for rising bond yields. 

While the ASX 200 is looking to rebound strongly today, here are the worst-performing ASX 200 shares from last week. 

1. IDP Education Ltd (ASX: IEL) 

The IDP share price took a 13.86% nosedive last week, making it the worst-performing ASX 200 share. Despite the significant fall, its shares have only stumbled to a 1-month low and up 14% for the year

There’s a true bull and bear case for the international student and language service provider. A challenging business environment in the face of a global pandemic resulted in a significant decline in the company’s revenues. The 1H FY21 results highlighted a 26% decline in revenue to $269.1 million and 45% decline in net profit after tax to $29.7 million. 

While its financial performance might be weak at face value, Ord Minnett called out IDP’s results on 24 February as an “extremely strong result under the circumstances”.

On the day of its 1H FY21 results, the IDP share price briefly touched a new all-time record high of $29.22. 

On the flip side, there are increasing concerns that the deteriorating relationship with China will curb international student numbers. An article from the Australian Financial Review notes that education agents based in China were given a directive not to send students to Australia.

2. Cimic Group Ltd (ASX: CIM) 

The anticipated and existing policies to boost infrastructure and housing sectors failed to trickle into an improvement in Cimic’s earnings. Cimic Group shares slumped as much as 18.5% on 10 February after the company announced its FY20 results which highlight a 20.3% decline in revenue due to COVID-19.

The Cimic share price has been in a year-on-year decline since 2018. And last week was yet another disappointing 12% decline for the Cimic share price.

3. Fortescue Metals Group Ltd (ASX: FMG) 

Fortescue shares went ex-dividend last Monday, paying an interim dividend of $1.47, or a yield of 6.65% at today’s prices. Given the currently elevated iron ore prices, Fortescue is expected to pay a dividend yield of approximately 11.70% in 2021. 

The Fortescue share price tumbled 8.50% last week, with much of this weakness attributed to going ex-dividend. Similarly, Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP) experienced similar declines along with going ex-dividend as well. 

More reading

• 5 ASX shares to buy in a market crash
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Morgan Stanley reveals some investment trends to watch in 2021
• How to turn $20,000 into $300,000 in 10 years with ASX shares
• These were the worst performing ASX 200 shares last week

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty 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.

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K2fly Ltd (ASX: K2F) shares will be on watch this morning following a contract signing with Coeur Mining Inc. (Coeur).

Established in 1928, Coeur is a precious metals producer that is primarily focused on gold and silver. The company employs over 2,000 people and has wholly-owned projects across the North America region. Coeur is also listed on the New York Stock exchange under the code, NYSE: CDE.

At market close last Friday, the K2fly share price finished the day down 1.4% to 33 cents.

What did K2fly announce?

The K2fly share price could be on the move today as investors digest the company’s latest update.

According to this morning’s release, K2fly advised it has entered into a resource inventory management Software-as-a-Service (SaaS) contract with Coeur.

Under the deal, K2fly will roll-out its RCubed software solution across Coeur’s 5 operating sites.

The annual recurring revenue (ARR) is estimated to be around $115,000 running over a 5-year term. The total contract value (TCV) will be roughly $718,000, depending on exchange rate fluctuations. This brings the company’s SaaS TCV to more than $8.7 million, an increase of 42% quarter-to-date (Q3 FY21).

The latest agreement solidifies the growing demand for K2fly’s software solutions in the mining industry. In late January, international mining giant Alcoa signed a 5-year contract for K2fly’s RCubed resource inventory solution.

Management commentary

K2fly chief commercial officer Nic Pollock welcomed the new deal, saying:

We are delighted to add another US-based, NYSE listed company and yet another gold producer to the growing list of companies using our governance and reporting software.

Additionally, it further validates that K2F’s RCubed software solution is the leading solution in the mining technical assurance space globally for Resource and Reserve Governance and Reporting in all commodities and especially Gold, where we service five of the top ten global gold miners by market capitalisation.

About the K2fly share price

Over the past 12 months, the K2fly share price has accelerated to more than 65%, reflecting positive investor sentiment. The company’s shares hit a 52-week low of 12.5 cents last March, before trekking higher. It’s worth noting that last month its shares reached a multi-year high of 43 cents.

Based on current valuations, K2fly commands a market capitalisation of around $33 million.

More reading

• Here’s why the Recce (ASX:RCE) share price is racing higher today
• The worst performing ASX 200 shares last week
• International Women’s Day: Which ASX companies are fighting gender inequality?
• 2 highly rated ASX dividend shares to buy now
• Here’s why the Nuix (ASX:NXL) share price is storming 5% higher today

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 year, the theme of International Women’s Day is #ChooseToChallenge, and in the spirit of challenging gender inequality and bias, we’re taking a deep dive into gender equality within companies listed on the Australian Stock Exchange (ASX).

We will focus on the people making up the boards of S&P/ASX 200 Index (ASX: XJO) listed companies and ask some of the important questions: Where is progress happening? Where does more need to be done? And finally, how are those that have made the ASX 200 contributing to equality?

How gender inequality presents itself in the Australian share market

You may be thinking that gender bias isn’t something we need to be talking about in Australia. That here, sexism died long ago. However, while we have come a long way over years, and we’re getting closer to gender equality, we’re not there yet.

Chief Executive Women (CEW) defines true gender balance on company boards as a 40:40:20 ratio – where at least 40% of a board’s members are female and 40% are male, with 20% leeway.

It’s an ever-changing statistic, but the CEW’s ASX200 Senior Executive Census 2020 reported only 30 companies on the ASX 200 have achieved this balance.

It also found that of 25 chief executive appointments to ASX 200 companies between 2019 and 2020, only one was filled by a woman. In the same time frame, the proportion of female CEOs dropped to just 5%. A number that is more stunning when considered alongside S&P Global research that found the share prices of female-led companies perform, on average, 20% better than male-led companies. 

It’s a bleaker picture still when we consider other Australian indices. According to the Australian Institute of Company Directors (AICD), only 30.2% of ASX 300 Index (ASX: XKO) board members are women, with 14 companies’ boards comprising only men.

Those on the All Ordinaries Index (ASX: XAO) are even worse. Only 26.4% of board members within All Ords-listed companies are women and a total of 80 boards (out of 500) have no women on them.

Is 2021 the year of gender equality on the ASX 200?

2021 is off to a great start for gender equality in companies listed on the ASX 200.

So far, 45.5% of new board appointments in 2021 have been comprised of women. Way up from only 28% in 2011.

In January alone, women came to hold 5 more board seats on ASX 200-listed companies.

Additionally, according to the AICD, the average number of women on ASX 200 boards is 32.6%.

Things certainly have come a long way since the 30% Club launched in Australia in 2015. The club’s primary objective is campaigning for 30% women on ASX 200 boards. Its aims have been well and truly achieved; 110 companies listed on the ASX 200 now have boards that are at least 30% female.

Alas, gender bias and inequality are ongoing battles and we still have a long way to go. But the future is looking bright.

How do ASX 200 companies stack up in the fight against gender inequality?

Currently, Woolworths Group Ltd (ASX: WOW) is leading the fight against gender inequality, with 5 of Woolworths’ 9 board members being women.

A number of companies are keeping up with Woolworths’ example, boasting a 50% female board. These include Elders Ltd (ASX: ELD), A2 Milk Company Ltd (ASX: A2M) and Lynas Rare Earths Ltd (ASX: LYC).

On the flip side, there are only 2 companies in the ASX 200 with no women on their board of directors — Kogan.com Ltd (ASX: KGN) and Silver Lake Resources Limited (ASX: SLR). Each company has 4 board members, and of these, 100% are male. 

More reading

• Leading broker upgrades Woolworths (ASX:WOW) shares to buy rating
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Morgan Stanley reveals some investment trends to watch in 2021

Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Elders Limited 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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Luckily in this low interest rate environment, the Australian share market has plenty of options for investors looking to generate a passive income.

But which ASX dividend shares should you buy today? Here are two that come highly rated:

Integral Diagnostics Ltd (ASX: IDX)

The first ASX dividend share to look at is this medical imaging service provider. At present, Integral Diagnostics operates from a total of 72 radiology clinics, including 26 comprehensive sites. From these sites, the company employs some of the region’s leading radiologists and nuclear medicine specialists.

During the first half of FY 2021, the company reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.

This went down well with analysts at Goldman Sachs. In response to the release, the broker initiated coverage on the company with a buy rating and $5.50 price target.

In addition to this, based on the latest Integral Diagnostics share price, it estimates that its shares offer a fully franked 2.5% dividend yield. While this is not the biggest yield you’ll find, the broker believes it can grow at a solid rate in the coming years.

Goldman notes that Integral Diagnostics is “a well-run business in an attractive industry, with a relatively secure volume profile of mid/high single digit growth, and a clear path for further growth through brownfield and M&A activities.”

Wesfarmers Ltd (ASX: WES)

Another dividend share to consider is Wesfarmers. Like Integral Diagnostics, this conglomerate was on form during the first half of FY 2021.

For the six months ended 31 December, Wesfarmers reported a 16.6% increase in revenue to $17,774 million and a 25.5% increase in net profit after tax to $1,414 million.

While this was driven by solid sales growth across much of the company, its key Bunnings business was clearly the star of the show. The hardware giant recorded a 24.4% increase in revenue to $9,054 million.

Goldman Sachs was pleased with this result as well. In response to it, the broker put a buy rating and $59.70 price target on its shares.

Looking ahead, Goldman is forecasting a fully franked FY 2021 dividend of $1.88 per share. Based on the latest Wesfarmers share price, this equates to an attractive 3.8% yield.

More reading

• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Brokers name 3 ASX shares to buy right now
• 2 ASX 200 shares to buy for growth
• Exploring the golden window of opportunity for ASX ESG investors
• 2 high quality ASX dividend shares to buy to beat low rates

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Integral Diagnostics 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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