Tag: Motley Fool

All companies start somewhere and don’t become blue chips overnight.

Two ASX shares that are at the start of their journeys are listed below. Here’s what has investors watching them closely:

Cluey Ltd (ASX: CLU)

Cluey is a recently listed education technology company. It describes itself as an innovative edtech company. It integrates personal tutoring with its scalable technology platforms and utilises data and learning analytics to support the delivery of quality learning to thousands of Australian students.

Last week the company released its first update since its IPO and revealed cash receipts from customers of $3.2 million in the second quarter and $7 million for the six months to 31 December. This represents growth of 298% and 366% on the respective prior corresponding periods.

This was driven by a significant increase in learning sessions over the period. While no second quarter figure was provided, in the first quarter the company recorded 52,700 learning sessions. This was up 338% on the same period last year and up 41% compared to the fourth quarter of FY 2020.

Cluey is forecasting a 218% increase in revenue to ~$15.5 million in FY 2021.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. Its popular platform automates communications between organisations and people. This enables users to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful, and actionable insights.

Whispir was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and annual recurring revenue (ARR) growth of 34% to $42.2 million.

This positive form has continued in FY 2021, with the company recently revealing strong second quarter growth. Whispir posted a 29.2% increase in ARR to $47.4 million. Management advised that this was driven by ongoing demand for communications software to automate processes and improve stakeholder engagement.

This is still only a small slice of its overall market opportunity. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024.

More reading

• 3 ASX shares that have outperformed over the past year
• Here’s why the Whispir (ASX:WSP) share price is storming higher today
• The Whispir (ASX:WSP) share price is 30% lower than its 52-week high
• These small cap ASX shares have huge growth opportunities
• How to invest in ASX shares in a post-COVID world 

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 Whispir Ltd. The Motley Fool Australia has recommended Whispir 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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) is still the most shorted ASX share by some distance. The online travel agent’s short interest remained flat week on week at 14.9%. Short sellers appear to believe the Webjet share price is severely overvalued at the current level.
• Tassal Group Limited (ASX: TGR) has seen its short interest rise again week on week to 12.2%. There are concerns that this salmon producer and other seafood producers could become the next victims of the Australia-China trade war.
• Mesoblast limited (ASX: MSB) has seen its short interest increase to 10.3%. Short sellers continue to target this biotech company after a series of trial disappointments.
• Speedcast International Ltd (ASX: SDA) still has short interest of 9.3%. The communications satellite technology provider’s shares have been suspended for around one year as it undertakes a recapitalisation.
• Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. Short sellers appear to believe that this poultry producer could disappoint in FY 2021 due to an unfavourable sales mix caused by COVID-19.
• AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8.2%. This medical device company was a poor performer in FY 2020 due to COVID-19 headwinds and short sellers don’t appear to believe that the current financial year will be much better. However, it is worth noting its shares have jumped 37% in the space of a month, much to the dismay of those shorting it.
• InvoCare Limited (ASX: IVC) has short interest of 8.1%, which is down slightly week on week. There are concerns that this funerals company could disappoint in FY 2021 due to increasing competition, COVID headwinds, and market share losses.
• A2 Milk Company Ltd (ASX: A2M) has seen its short interest ease to 7.8%. Short sellers don’t appear to believe the weakness in the daigou channel will be a quick fix and may be expecting it to persist into FY 2022. This could weigh on its growth in the near term.
• Service Stream Limited (ASX: SSM) has entered the top ten with short interest of 7.3%. This essential network services company’s shares came under pressure recently after it revealed that it was sharing its NBN work with other contractors.
• Metcash Limited (ASX: MTS) has re-entered the top ten with short interest of 7.3%. Short sellers aren’t giving up on the wholesale distributor despite its strong form so far in FY 2021. They may believe the market is too bullish on its outlook.

More reading

• Here’s one party Woolies and Coles will not be attending
• 3 reasons why the A2 Milk share price could be a buy
• Afterpay and BrainChip were some of the most traded ASX shares last week
• Aussies ready to splash on travel, entertainment, cars
• Here are the 10 most shorted shares on the ASX

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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk and Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited, InvoCare Limited, and Service Stream 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 Tesla Inc (NASDAQ: TSLA) share price had an incredible run in 2020. Shares in the electric vehicle (EV) maker climbed 707.4% higher in 2020 to US$694.78 by year end.

According to an article in The Australian Financial Review (AFR), that made Tesla shares one of the worst short bets on the American market in the last 12 months.

Why Tesla shares were a bad short bet in 2020

Short selling is quite a simple concept. A short-seller borrows shares in a company, sells those shares and waits for the price to drop. The idea is that the short-seller can then buy those same shares back for a lower price after the drop and return the borrowed shares back to the owner with a tidy profit in their pocket.

In the case of Tesla shares, many short-sellers were burned in 2020. As reported by AFR, short interest and securities finance data provider, S3 Partners, crunched the numbers on 2020’s worst short bets.

 S3 calculated that short sellers who bet against Tesla would have recorded mark to market losses of 224% or US$40.1 billion.

It wasn’t just Tesla shares that burned short sellers in 2020. Fellow Nasdaq giant Apple Inc (NASDAQ: AAPL) shares saw investors book mark to market losses of US$6.7 billion, said S3.

The coronavirus pandemic and subsequent bear market emboldened short sellers in 2020. However, record government stimulus across the globe helped prop up consumer spending and keep strong money flows into equities, pushing valuations higher.

That means there were a number of short bets that didn’t pay off for investors in the US market. These also included Amazon.com Inc (NASDAQ: AMZN) and Netflix Inc (NASDAQ: NFLX), which both soared in 2020.

Foolish takeaway

Despite high hopes from short sellers in 2020, equities recovered quickly. Closer to home than Tesla shares, the S&P/ASX 200 Index (ASX: XJO) recorded one of its best quarters on record through to December 2020.

However, short sellers aren’t being deterred by the 2020 experience. In fact, Tyro Payments Ltd (ASX: TYR) continues to fend off short seller attacks in a busy start to 2021.

More reading

• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 5 things to watch on the ASX 200 on Monday
• Morgans picks February’s reporting season ASX heroes to buy now
• RBA might end QE in 2021! Will the ASX bubble burst?
• These were the best performing ASX 200 shares last week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Ken Hall 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 Amazon, Apple, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX dividend shares that a number of brokers like and have rated as ‘buys’

It can be quite hard to find good businesses that are trading at a good price. One investor might say that BHP Group Ltd (ASX: BHP) is a good buy, whilst another might say that Woolworths Group Ltd (ASX: WOW) is the share to buy.

Brokers are constantly looking at businesses and share prices, thinking about what would be a good investment. There are various brokers out there like Bell Potter, Macquarie Group Ltd (ASX: MQG) and UBS that provide different recommendations about shares.  

With that in mind, these ASX dividend shares are liked by more than one broker. Of course, this still isn’t a guarantee of success – they could all be herding together.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon is Australia’s largest rail freight operator, moving coal, iron ore, agricultural freight and more across the nation.

The ASX dividend share is rated as a buy by at least three brokers.

Over the past year the Aurizon share price has fallen 29% and over the past two months the Aurizon share has dropped 11%. This has pushed the trailing partially franked dividend yield up to 7%. The total FY20 dividend was increased by 10% on the back of a 12% increase to underlying net profit after tax (NPAT).

However in FY21 the company is expecting group underlying earnings before interest and tax (EBIT) to be in the range of $830 million to $880 million, down from the $909 million EBIT generated in FY20.

For coal, the company is expecting flat coal volumes based on the current view of COVID-19 impact on steel demand.

Super Retail Group Ltd (ASX: SUL)

Super Retail is one of the largest retailers in Australia, it sells through brands like BCF, Supercheap Auto, Rebel and Macpac.

The ASX dividend share is liked by at least four brokers.

Super Retail recently gave a trading update which showed growth for the first half of its FY21.

For the 26-week period ending 26 December 2020, the company said that it achieved a record result with group sales growth of 23% and like-for-like sales growth of 24%. Online sales went up 87% to $327 million.

The Super Retail gross margin improved by 270 basis points, which supported higher EBIT margins across all four core brands.

Super Retail reported that its provisional segment underlying EBIT was $253 million to $256 million – this would equate to growth of 119% to 122%. It also said that provisional normalised net profit is going to be in a range of $174 million to $177 million, which would be growth of 135% to 139%. Statutory net profit is expected to be in a range of $170 million to $173 million, which would be growth of 196% to 201%.

Management are expecting to invest in its businesses in the second half of the year, with higher promotional activity and an aim to grow its market share.

Based on the trailing dividend and the current Super Retail share price, it has a grossed-up dividend yield of 6%.

Brickworks Limited (ASX: BKW)

Brickworks is a diversified property business. It has numerous building products such as bricks, paving, masonry, roofing and precast. Some of its largest brands include Austral Bricks, Austral Masonry, Austral Precast and Bristle Roofing.

The ASX dividend share is rated as a buy by at least four brokers.

The company is seeing a recovery in the Australia building products sector with the country seeing a turnaround after the painful COVID-19 effects in the first half of 2020.

Brickworks owns two large assets which supports its current (and growing) dividend. It owns around 40% of investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which has a defensive and diversified portfolio to provide growing dividends to Brickworks.

The company also has an industrial property joint venture with Goodman Group (ASX: GMG) which seeks to maximise the excess land that Brickworks used to own by building good properties on prime real estate.

At the current Brickworks share price, it has a grossed-up dividend yield of 4.6%.

More reading

• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 2 quality ASX dividend shares with attractive yields
• Got money to invest for dividends? Here are 3 ASX shares
• 3 ASX shares rated as strong buys by brokers
• Leading broker tips Super Retail (ASX:SUL) share price to rocket higher

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Aurizon Holdings 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 S&P/ASX 200 Index (ASX: XJO) has just capped off a bumper week which saw the flagship index rise a healthy 1.3% and hit a new post-March high. The ASX 200 finished the week right on 6,800 points, the first time this threshold has been tested since the coronavirus-induced ravages that last March brought to the markets.

This puts the index up 1.7% for the year to date – not a bad outcome considering we haven’t even wrapped up January yet. So what was the catalyst for last week’s healthy jump? We can probably put it down to the smooth transition of power we witnessed across the Pacific on early Thursday morning (our time).

That observation comes after taking a look at how the ASX 200 opened on Thursday compared with the level it finished up at on Wednesday. It’s no secret that the now-former US President Donald Trump didn’t exactly go… quietly into the night, after the results of the presidential election back in November became apparent.

A Biden dawn lights up the ASX

Indeed, Mr Trump is now in the process of going through his second impeachment trial, the first time this dishonour has followed an outgoing president. Now, after the riots at the US capitol on 6 January, much was made of the ongoing potential threats to a peaceful transition of power that took place on 20 January at the inauguration. The market was clearly buying into these fears, given there was a relief rally when it all went off without a hitch.

Now that President Biden is officially in office, market attention is turning to the new administration’s cabinet members. They are currently going through the routine senate confirmation process. The nominee for US Treasury Secretary, Janet Yellen, seems to be a popular choice among investors, given her previous role as head of the US Federal Reserve.

The administration’s bold stimulus agenda has also been well received. Biden has already proposed a US$1.9 trillion package to counter the ongoing economic woes the pandemic is inflicting on the US economy. Investors have evidently largely embraced Biden’s agenda (despite corporate tax hike proposals), given the US markets are up more than 14% since the election. 

But let’s get back to the ASX.

So we saw a number of significant moves on the ASX last week. First up was Zip Co Ltd (ASX: Z1P). The Zip share price ballooned close to 30% last week following the release of the company’s second quarter update. In this update, Zip told the market its transaction values had surged by more than 100%, including a 200%-plus rise in US payments under the company’s QuadPay brand.

Despite this spike, Zip shares are still trading around 30% off of their all-time high of $10.64 we saw last year. Zip shareholders can’t complain too loudly though. The company’s share price is up almost 34% over the past month.

Rare earths miner and processor Lynas Rare Earths Ltd (ASX: LYC) also had a stunning week. The Lynas share price was up close to 27% last week, including a 13.7% boost on Friday alone. The driver of these results was a new agreement for the company with the US Government and the state of Texas. This agreement will see Lynas build a new separation plant in the state, for which the US Department of Defence is contributing US$30 million. 

How did the markets end the week?

The ASX 200 started the week at 6,714.4 points and finished up at 6,800.4 points, pegging the week’s gains at 1.3%. Monday saw a slow start, with the index shedding 0.78%. But Tuesday turned the tide with a healthy 1.19% gain. Wednesday and Thursday backed this move up with 0.41% and 0.79% gains respectively. Friday saw a small sell-off worth 0.34%. But that wasn’t enough to dent the ASX’s still-impressive 1.3% gain for the week.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a top week, starting at 6,986.6 points and finishing up at 7,078.9 points, up 1.32% for the week.

Which ASX 200 shares were the biggest winners and losers?

Ok, time to put the kettle on as we gossip over last week’s biggest winners and losers. We’ll start with the losers:

Worst ASX 200 losers	% loss for the week
Whitehaven Coal Ltd (ASX: WHC)	(10.6%)
Unibail-Rodamco-Westfield (ASX: URW)	(10.2%)
Alumina Limited (ASX: AWC)	(6.3%)
Premier Investments Limited (ASX: PMV)	(6%)

First up on the losers list is wooden spoon recipient Whitehaven Coal. It’s unclear what bugs were in investors’ beds over Whitehaven last week. One possible explanation might be the Biden administration’s attitude towards climate change. Indeed, one of President Biden’s first acts was rejoining the US to the Paris Climate Accord. Maybe that gave some Whitehaven shareholders coal feet…

Next up is Unibail-Rodamco-Westfield. The catalyst for URW’s fall may have been the announced sale of a Paris office building (the only real piece of news from the company last week).

Alumina is next with a 6.3% drop. Again, there is no obvious reason why Alumina copped some selling pressure last week. My Fool colleague James Mickleboro noted it may have been the result of some bearish broker commentary. 

Finally, we have ASX retail darling Premier with a 6% decline. It seems with this one investors decided the Premier share price may have gotten a little carried away. Even after last week’s drop, however, the company’s shares are still up more than 30% over the past 6 months. 

Now the losers are out of the way, let’s check out last week’s winners:

Best ASX 200 gainers	% gain for the week
Zip Co Ltd (ASX: Z1P)	28.9%
Lynas Rare Earths Ltd (ASX: LYC)	26.1%
Netwealth Group Ltd (ASX: NWL)	20.5%
Bingo Industries Ltd (ASX: BIN)	20.2%

A rare occurrence, with all four shares up more than 20% last week! We’ve already covered Zip and Lynas, but Netwealth’s good fortune can be put down to the release of the company’s second quarter update. In this update, Netwealth told the market its funds under management had surged 14% over the quarter. 

Meanwhile, Bingo was up big due to a takeover proposal, which valued the waste management company’s shares at $3.50 each. Even with the gains of the week, the Bingo share price finished up on Friday at $3.27, so we’ll see where things go from there. 

A wrap of the ASX 200 blue chip shares

Before we go, here is a look at the major ASX 200 blue chip shares as we start yet another week on the hunt. Interestingly, we were starting to see some of the 52-week highs of 2020 drop off the perch last week.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 blue chip ASX dividend shares to buy next week
• 2 ASX growth shares to buy for big returns
• Morgans picks February’s reporting season ASX heroes to buy now
• RBA might end QE in 2021! Will the ASX bubble burst?

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Netwealth, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Premier Investments Limited, and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, 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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Exchange traded funds (ETFs) can be a great way to balance out your portfolio. This is because they give investors easy access to a large number and diverse range of shares that you wouldn’t usually have access to.

Due to their growing popularity with investors, there are an increasing number of ETFs to choose from. To narrow things down, I have picked out two ETFs that could be worth a closer look:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF is one for investors to look closely at. This ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.

The fund includes a number of cybersecurity giants and emerging players. This includes the likes of Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

Given the increasing threat of cyber attacks on governments and businesses, demand for cybersecurity has been growing quickly and is expected to continue doing so in the future.

This could make it a growth sector for at least the next decade. And with the sector being heavily under-represented on the ASX, this ETF could be a great way to gain exposure to it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider buying is the Vanguard MSCI Index International Shares ETF. This fund provides investors with exposure to many of the world’s largest companies listed in major developed countries.

Vanguard notes that the fund offers low-cost access to a broadly diversified range of securities that allow investors to participate in the long-term growth potential of international economies outside Australia. 

At present the fund is invested in a total of 1,532 listed companies. These include some of the highest quality companies in the world such as Apple, Johnson & Johnson, NVIDIA, Pfizer, Procter & Gamble, Tesla, and United Health.

More reading

• 3 exciting ASX tech shares to buy
• 2 top ETFs delivering solid returns
• 2 outstanding ASX ETFs to buy
• 3 quality ETFs for ASX investors to buy today
• 2 quality ETFs to buy for the long term

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 BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 currently searching for a couple of tech shares to add to your portfolio, then you could do a lot worse than the ones listed below.

Here’s why these ASX tech shares come highly rated right now:

Appen Ltd (ASX: APX)

The first ASX tech share to look at is this global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Appen works closely with some of the biggest tech companies in the world and has a strong position in the government sector through its Figure Eight business.

Its shares have come under significant pressure recently after it revealed that COVID-19 headwinds were stifling its growth. So much so, the Appen share price is currently trading 48% lower than its 52-week high. Which based on a note out of Macquarie this month, means its shares are currently trading at approximately 31x estimated FY 2021 earnings. The broker appears to believe that this is a buying opportunity for investors that are prepared to make a long-term investment.

Macquarie is expecting demand for Appen’s services to rebound strongly in 2021 and underpin strong earnings growth. In light of this, it recently reiterated its outperform rating and put a $27.00 price target on its shares.

Nearmap Ltd (ASX: NEA)

Another ASX tech share to look at is Nearmap. It is a leading aerial imagery technology and location data company. Nearmap gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake site visits from the comfort of their home or workplace, which offers both significant time and cost savings.

Management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley is positive on the company’s future. The broker currently has an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.

More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX growth shares to buy for big returns
• 5 things to watch on the ASX 200 on Thursday
• One bullish growth signal for the Afterpay (ASX:APT) share price in 2021
• Insiders have been buying Appen (ASX:APX) and ASX share

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 Appen Ltd and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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Are you looking for some reliable ASX dividend shares to add to your portfolio? 

Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first reliable ASX dividend share to look at is BWP Trust. It is a real estate investment trust (REIT) investing in and managing commercial properties throughout Australia. The majority of the company’s properties are large format retailing properties. These are predominantly warehouses leased to home improvement giant Bunnings Warehouse.

In fact, BWP is the largest owner of Bunnings properties with a total of 68 properties leased to the retailer at present. Bunnings has proven to be a fantastic tenant to have. While many retail landlords have struggled during the pandemic, BWP has continued to thrive thanks to the strong performance of Bunnings.

Pleasingly, Bunnings’ owner, Wesfarmers Ltd (ASX: WES) has reported very strong sales growth so far in FY 2021 for the home improvement business. This appears to indicate that it will be business as usual for BWP’s rental collections this year.

Which, based on management’s commentary, is likely to mean a distribution of at least 18.29 cents per unit. And with the current BWP share price trading at $4.30, this will mean a 4.25% yield for investors. 

Rural Funds Group (ASX: RFF)

Another reliable dividend share to look at is Rural Funds. It is a REIT that owns a diversified portfolio of high quality Australian agricultural assets.

At the end of FY 2020, Rural Funds owned a total of 61 properties with a combined value of $1 billion and an ultra long weighted average lease expiry (WALE) of 10.9 years. From these properties it grew its adjusted funds from operations (AFFO) to 11.7 cents per share, allowing the Rural Funds board to increase its full year distribution to 10.8 cents per share.

In line with management’s targets, it plans to increase its dividend again this year. It intends to increase its distribution by 4% to 11.28 cents per share. Which based on the current Rural Funds share price, works out to be a generous 4.55% yield.

More reading

• 3 top ASX dividend shares to buy for income
• 2 ASX dividend shares with 4%+ yields
• These ASX dividend shares could solve your income needs
• 3 ASX dividend shares with large yields and consistent payouts
• 2 ASX dividend shares for income investors

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Wesfarmers 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a day in the red. The benchmark index fell 0.35% to 6,800.4 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to bounce back on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 15 points or 0.2% higher. This is despite Wall Street ending the week in a disappointing fashion. On Friday, the Dow Jones fell 0.6%, the S&P 500 dropped 0.3%, and the Nasdaq edged 0.1% higher.

Oil prices drop lower

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 1.6% to US$52.27 a barrel and the Brent crude oil price fell 1.2% to US$55.41 a barrel. Oil prices tumbled after demand fears put a dent in sentiment.

Tech shares on watch

It could be a positive day of trade for tech shares including Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Monday after US tech shares ended the week at record highs. The tech-focused Nasdaq index climbed a sizeable 4% for the week following some strong quarterly updates.

Gold price pulls back

It could be a tough day for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped lower on Friday. According to CNBC, the spot gold price dropped 0.5% to US$1,859.90 an ounce. The price of the precious metal came under pressure after the US dollar firmed.

Iron ore softens

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch today after the iron ore price softened. According to Metal Bulletin, the benchmark iron ore price dropped 0.9% to US$169.97 a tonne. This led to the UK-listed BHP share price falling 1.2% on Friday night.

More reading

• Morgans picks February’s reporting season ASX heroes to buy now
• RBA might end QE in 2021! Will the ASX bubble burst?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• 3 reasons the BHP (ASX:BHP) share price could be in the buy zone

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 Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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If you’re looking for growth shares to invest in, then you might want to get better acquainted with the ones listed below.

These two companies are targeting huge growth over the 2020s and could generate outsized returns for investors if they deliver on their plans. Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share that is targeting strong growth over the long term is Domino’s. The pizza chain operator expects to achieve this through the expansion of its store network and same store sales growth.

In respect to its store expansion, at the end of FY 2020, the company had a network of 2,668 stores across the ANZ, European, and Japan markets. While this is a large number of stores, management still believes there is significant room for growth over the next decade. It aims to more than double its network to 5,500 stores by 2033.  And that’s purely from the markets it is already operating in. Domino’s has the option to expand into new markets organically or through acquisitions.

As for its sales targets, Domino’s has a medium term target of growing its same store sales by 3% to 6% per annum. If it delivers on this, the combination of the two should underpin strong sales growth.

One broker that is a big fan of Domino’s is Bell Potter. It recently reiterated its buy rating and $99.30 price target on its shares.

SEEK Limited (ASX: SEK)

Another ASX share targeting huge growth over the 2020s is SEEK. It is the dominant job listings company in the ANZ region and has a number of growing businesses around the world. One of those is the Zhaopin business in China. It has been growing at a very strong rate in recent years and has become a key part of the SEEK business.

Thanks to Zhaopin and its investment in growth opportunities, SEEK is aiming to grow its revenue to a massive $5 billion later this decade. This is over three times larger than the revenue of $1,577.4 million it achieved in FY 2020.

Analysts at Credit Suisse are positive on the company’s future. They have an outperform rating and $28.50 price target on its shares.

More reading

• 4 ASX ‘winners’ destined for growth: fundie
• ASX 200 up 1.2%: Bingo rockets, Rio Tinto update, Domino’s jumps
• Why Bingo, Creso Pharma, Domino’s, & Tyro shares are zooming higher today
• 3 ASX 200 shares that keep growing their dividends
• Risk vs uncertainty: why one is a lot worse

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

The post These ASX shares are targeting enormous growth over the 2020s appeared first on The Motley Fool Australia.

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