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The Rio Tinto Limited (ASX: RIO) share price will be one to watch this morning following the release of its fourth quarter update.

How did Rio Tinto perform in the fourth quarter?

Rio Tinto was on form in the fourth quarter and delivered production growth across most commodities.

According to the release, the company’s Pilbara iron ore production came in 3% higher for the quarter to 86Mt. This brought its full year production to 333.4Mt, which was up 2% on the prior corresponding period. This was despite negative impacts from Cyclone Damien in the first quarter and COVID-19 disruptions.

In respect to shipments, the company’s Pilbara iron ore shipments grew 2% in the fourth quarter to 88.9Mt and 1% for the full year to 330.6Mt. Management advised that this was underpinned by record total material moved, which was 7% higher than the previous record in 2019.

The mining giant’s Bauxite production of 56.1 million tonnes was 2% higher than 2019. This was supported by the ramp-up of the expansion at the CBG mine in Guinea, and steady performance at the Pacific mines.

Despite growth in the fourth quarter, Aluminium production came in flat for the year at 3.2 million tonnes. Management explained that the ramp-up of the Becancour smelter in Quebec offset lower volumes from the curtailment of Line 4 at the Tiwai Point aluminium smelter and from the Kitimat smelter pot relining campaign.

And while Rio Tinto’s copper production was 9% lower than in 2019, it was ahead of its guidance range at 527.9kt. This production decline was due to lower grades at Kennecott as a result of planned pit sequencing and Oyu Tolgoi production phasing.

Average price received update.

Rio Tinto has revealed the prices that it was able to command in 2020 for its major commodities.

Iron ore was unsurprisingly the star of the show, with the company commanding US$91 per wet metric tonne and US$98.9 per dry metric tonne. This was up 15.2% and 15.1%, respectively, over the prior corresponding period.

Also increasing in 2020 was the copper price, with Rio Tinto achieving a price of 283 US cents per pound. This was up 3.3% year on year.

2021 Guidance.

Looking ahead, the company is forecasting Pilbara iron ore shipments of 325Mt to 340Mt in 2021. This compares to 2020’s shipments of 331Mt.

Mined copper production is expected to be in the range of 500kt to 550kt, Bauxite is expected to be 56Mt to 59Mt, and Aluminium is forecast to be between 3.1Mt and 3.3Mt.

Rio Tinto’s new Chief Executive, Jakob Stausholm, commented: “Safe and well-run operations, together with world-class assets and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders, invest in sustaining and growing our portfolio, while continuing to pay taxes and royalties in our host communities and make a broader contribution to society, including employment and procurement.”

More reading

• ASX dividends: Are miners the new bank shares?
• Can iron ore keep pumping the share prices of these ASX miners?
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• 2 ASX dividend shares with yields over 5% right now
• ASX banks to steal the dividend crown from mining stocks by next year

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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There may be some high-quality ASX shares out there that have the potential to deliver outsized investment returns over the next few years.

Here are some ideas:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a growing ASX share involved in facilitating electronic donations to large and medium US churches. It also offers other tools including donor tools, finance tools and a custom community app and a church management system.

Fund manager Ben Griffiths from Eley Griffiths said: “Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE)). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”

The company recently upgraded its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance to a range of US$56 million to US$60 million after receiving more processing volume in December than expected during this COVID-19 period. This guidance means management are expecting the company to more than double its EBITDAF in FY21.

The ASX share is trying to become the preferred provider of mission critical software to the US faith sector. It’s aiming for US$1 billion revenue from this sector.

Pushpay expects operating leverage to continue to accrue to the business over the rest of the current financial year, and over the longer-term.

According to Commsec, at the current Pushpay share price it’s valued at 19x FY23’s estimated earnings.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is an ASX share that takes investment stakes in fund managers globally and then helps them grow with capital and/or Pacific Current’s expertise.

Dean Fremder of Perpetual Limited (ASX: PPT) said when Pacific Current shares were a bit lower: “The stock’s really cheap. It is on nine times earnings. It’s growing earnings at double digits, so more than 10% a year. It’s paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can’t be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one.”

In FY20 Pacific Current grew its funds under management (FUM) by 62% to $93 billion, which drove underlying earnings per share (EPS) higher by 18% to $0.51. The Pacific Current board increased the annual dividend by 40% to $0.35.

According to Commsec, the Pacific Current share price is valued at 9x FY23’s estimated earnings. It also has a trailing grossed-up dividend yield of 8%.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a large fund manager. It manages just over $100 billion of funds for both institutions and retail investors.

Dr Peter Gardner from Plato Investment Management said about the ASX share and its FY20 result: “Magellan had a really good result. Their profit was up 20%. That final dividend was 10% higher than last year. What bodes well for future earnings for Magellan is that their average funds under management was up by 26% over the year. They’re actually doing really well in the current market environment. The growth stocks in the US, which they’re exposed to are doing really well.”

According to Commsec, the ASX share is valued at 20x FY21’s estimated earnings compared to the current Magellan share price. It also has a projected FY21 grossed-up dividend yield of 6%.

More reading

• Got cash to invest? Here are 2 ASX shares to buy
• 2 fantastic ASX shares to buy and hold until 2031
• Top fundie Hamish Douglass warns of ASX share market FOMO
• These ASX shares are growing at a rapid rate in FY 2021
• Which ASX 200 shares have been slapped with price downgrades this week?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended IRESS Limited and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has been out of form over the last 12 months because of the COVID-19 crisis.

Since this time last year, the airport operator’s shares are down over 30%.

Is this a buying opportunity for investors?

According to a note out of Goldman Sachs, the Sydney Airport share price could be in the buy zone now.

This morning its analysts have put a buy rating and $6.78 price target on the company’s shares.

This price target implies potential upside of approximately 11% over the next 12 months.

Why is Goldman Sachs positive on Sydney Airport?

The broker notes that Sydney Airport is Australia’s largest domestic and international airport and the major gateway for international tourists arriving in the country.

In light of this, it expects the company to be “a major beneficiary of the global vaccine trade and the reopening of Australia’s international borders.”

Though, Goldman does acknowledge that the emergence of the new more contagious UK-strain of COVID-19 has added an increased degree of uncertainty over when international border will re-open and has increased disruption to domestic movements.

It commented: “This uncertainty, particularly on the domestic front has increased the risk profile of future aeronautical cash flows and earnings, and compounded by the possible requirement of further rental abatement through CY21 to retain tenants.”

Nevertheless, the broker believes Sydney Airport has the funds to ride out the storm and sees value in its shares at the current level.

Goldman explained: “We continue to believe SYD has sufficient liquidity to withstand this extended period of uncertainty and see limited need for an additional capital. Following the A$2bn equity raising in August, SYD has reinforced its balance sheet and has taken effective measures to mitigate cash outflows and capital commitments through CY21.”

“While we have lowered our 12 month target price by c.3.4% to A$6.78, we note that at current levels the stock is still offering c.11% upside (vs 6% average for our coverage). We retain our Buy rating,” it concluded.

More reading

• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• End Qantas-Virgin duopoly, says ACCC
• Leading brokers name 3 ASX shares to buy today
• The latest ASX “buy” recommendations from top brokers
• These are the latest 2021 ASX “buy” ideas from top brokers

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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I had a colonoscopy this morning.

Too much information? Sorry. But I did.

(Don’t worry… I’m not going into any more detail about the procedure.)

I had it because my old man was diagnosed with bowel cancer, when he was a short 8 years older than I am now.

I have nothing but praise for our doctors and nurses — I was treated wonderfully, in terms of both their professional skills and their care and compassion.

But as I was laying there, waiting for the anaesthetist to come and knock me out, my thoughts turned, if not to melancholy, to some of the what-ifs that come with a procedure that’s designed to tell you if you have cancer or its precursors.

What if today is to be the last day before a cancer diagnosis?

What if the prognosis is more serious than it otherwise might be?

Don’t get me wrong… I’m not a pessimistic person in any sense of the word. And I’m not a hypochondriac (truth be told, it was constant ‘encouragement’ by my wife, mother and sister that was instrumental in me getting off my backside to make the appointment in the first place!).

But, faced — even indirectly — with the idea of my own mortality, it made me think.

For our purposes today, I want to stick with my thoughts in the finance realm (There were others, of course, in other domains.)

I wondered to myself whether, should the worst eventuate, I had saved enough to look after my family.

Whether I had invested prudently.

Whether my insurances were enough.

And I have to admit my thoughts turned to what I’d need to do, should I get an unwelcome report from the doctor.

Again, not in a negative or pessimistic way — I’m just someone who likes to think ahead, and to be prepared.

(Ask my wife about my planning for our camping road trips, that include more than a few maps, spreadsheets and collections of web links for research, as well as the safety equipment we carry, just in case.)

And without getting even more macabre, it reminded me of a story related by my US colleague, Robert Brokamp. One of our US members, taking care to look after his wife, should he die first, wrote, then annually updated, a letter.

Left in his top drawer, he called it, with not just a little gentle, if poignant mirth, “A letter from a dead husband”.

That letter contained everything his wife needed to know about the couple’s finances, including account numbers and various details, so she could pick up where he left off, should the worst happen.

The sad, though fitting, postscript to that story is that the man in question did, unfortunately, die a couple of years ago. And while I have no doubt that money wasn’t foremost in his wife’s mind on his passing, his care and forethought meant it was at least something that didn’t need to cause her additional stress in the midst of her grief.

I don’t want to get lost in the melancholy, though. In fact, the opposite.

I’m going to assume that while the man in question would have desperately wanted more years on this mortal coil, he also would have been satisfied with how he left his affairs. That it would have given him great satisfaction in life, and also as he met his end.

For me, the colonoscopy — and the all-too-rapid approach of the age at which my father was diagnosed — have focused my mind.

Most importantly, I’m going to make sure I’m living the life I want to be living, and appropriately prioritising my life.

But then, I’m going to spend some time reassessing my financial goals and the steps I’m taking to get there.

And then I’m going to write my own version of that letter, to make sure our finances aren’t a burden for my wife if I go before she does.

The good news is that the colonoscopy showed no cause for any concern. I have to say, it was a relief.

But, as someone who lost a parent to cancer and still had to be prodded to get it done, can I please add my voice to those of others in your life encouraging you to go and get whatever check-up is most important for your health.

Please, make the call.

Make the appointment.

Get yourself checked out.

Then, come home, and write that letter to the important people in your life. You won’t be around to appreciate its benefit, but it’s a tangible gift you can give to your loved ones, after you go.

Fool on.

More reading

• Is the Sydney Airport (ASX:SYD) share price good value?
• Stop worrying about a market crash: Do this instead
• 2 stellar mid cap ASX growth shares to buy right now
• 2 ASX dividend shares with 4%+ yields
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Scott Phillips 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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Share markets have gained spectacularly since the COVID-19 crash back in March, even though the pandemic is far from over.

Valuations for some growth companies are now at historic highs, and that has many investors worried that we’re in a bubble.

GMO co-founder Jeremy Grantham warned of exactly that earlier this month, saying current times are “terrifying” and that the huge bubble would pop soon.

“Make no mistake – for the majority of investors today, this could very well be the most important event of your investing lives,” he said.

“Here we are again, waiting for the last dance and, eventually, for the music to stop.”

But two Australian experts have advised investors to stop wasting energy worrying about a market crash.

“Don’t constantly worry about a market collapse,” Marcus Today director Marcus Padley said on Livewire.

“Just be alert to it. React, don’t predict.”

Forager Funds chief investment officer Steve Johnson agreed.

“If 2020 proved anything, it was that predicting the future is extremely difficult, if not futile,” he said in a letter to investors on Thursday.

“We didn’t predict the market bottom in 2020. We didn’t anticipate the fastest bear market recovery on record. We simply tried to construct the best portfolios we could with the opportunities that were in front of us.”

Reacting is more important than predicting

Johnson humbly referred back to a blog post he made on 17 February last year. This was a few days before stock markets around the globe started plunging.

“Investors have reacted perfectly sensibly to a significant event that is still unlikely to have a dramatic impact on the value of equity markets,” he said at the time.

Despite this clearly incorrect prediction, Forager’s funds performed well last year. The internal shares fund returned a very nice 38.3%, while Forager Australian Shares Fund (ASX: FOR) returned 21.6%.

“Writing a blog that looked foolish in hindsight was probably a blessing in disguise,” Johnson said.

“It served as a timely reminder that great investment returns come from finding great investment opportunities. While many of those who predicted a market meltdown were wasting their time trying to identify the bottom, we were out there looking for stocks to buy.”

Just because the calendar ticked over to 2021 it shouldn’t change the themes relevant to stocks, according to Padley.

“Expect the bull market to continue – until it doesn’t,” he said.

“There is always something to worry about, but we really don’t need to worry about things that could happen until they happen.”

Here’s what to do

Instead of losing sleep over the prospect of a market crash, both experts recommended being aware of the biggest risks for 2021.

Keep monitoring for any signs that those risks might rear their heads. Then if one does seem like it’s likely, adjust your portfolio accordingly.

Padley said one risk he saw was the current vaccines could become ineffective because of a coronavirus mutation.

“Pandemic beneficiaries would soar, recovery sectors dump, gold will fly, and the market will briefly collapse. Mild forms of that will come with anything that dents the market’s global economic assumption or delays it.”

One big risk that both experts warned was any evidence that inflation was on the way up. That would force central banks to consider pulling up interest rates.

According to Johnson, investors have been assuming low interest rates to justify piling into many investments such as Tesla Inc (NASDAQ: TSLA) shares.

“There are theories, from ageing populations to technological improvements and low cost labour substitution, that explain low inflation or even deflation as a permanent feature of the developed world,” he said.

“I don’t have a strong view that those theories are wrong. But I know that when the whole market thinks something can’t possibly happen, the consequences of that assumption being wrong are significant.”

Padley thought central banks would be wary about hiking up rates too soon.

“The central banks are unlikely to allow a repeat of the ‘taper tantrum’ that caused the market to fall over in October 2018, so we can probably relax for this year at least.”

More reading

• Cathie Wood announces space ETF, what about the ASX space sector?
• Signal share price? An Elon Musk tweet and a WhatsApp controversy
• These ASX stocks just got a big upgrade on the back of Tesla (NASDAQ:TSLA)
• Will the ASX see a share market bubble in 2021?
• Here are the US shares ASX investors are buying in 2021 so far

Tony Yoo 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 Tesla. 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 the mid cap space, there are a number of shares with the potential to grow strongly over the 2020s.

But with so many to choose from, it can be hard to decide which ones to choose above others. Two that come highly rated are listed below:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is an ecommerce company with a focus on beauty and personal care products that launched out of a garage in Melbourne in 2000. Today, it has 590,000 active customers and a broad and diverse portfolio of over 230 brands and 11,000 products.

The company is expecting to generate revenue of $95.2 million in the first half of FY 2021. This is up strongly on the prior corresponding period and 7% ahead of its prospectus forecast.

The good news is that this is still only a very small slice of an ANZ beauty and personal care products market which the company advised was worth $10.9 billion in 2019. This gives Adore Beauty a long runway for growth over the next decade.

Analysts at Morgan Stanley are positive on its prospects. The broker has an overweight rating and $8.35 price target on the company’s shares. It believes Adore Beauty will benefit from the ongoing shift to online shopping.

Bravura Solutions Ltd (ASX: BVS)

Another mid cap to look at is Bravura. It is the financial technology company behind the popular Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices.

Bravura is far from a one-trick pony, though. It has been strengthening its offering over the last couple of years via acquisitions. This includes adding FinoCamp, Midwinter, and Delta Financial Systems to its portfolio. 

FinoCamp builds unique and highly flexible software that supports the UK wealth market, Midwinter is a financial planning software provider, and Delta Financial Systems provides technology to power complex pensions administration in the UK market.

Given its exposure to the UK market, Bravura has been hit hard by both the pandemic and Brexit. However, management appears confident these are short term headwinds.

This is a view shared with analysts at Goldman Sachs. They think investors should be patient and have retained their buy rating and $4.50 price target on its shares.

More reading

• Buy these ASX dividend shares if the RBA cuts rates again
• What does 2021 hold for ASX retail shares?
• Fund managers are buying Domino’s (ASX:DMP) and this ASX share
• 2 fantastic ASX growth shares that could beat the market in 2021
• ASX 200 drops 1.1%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions 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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If you’re searching for generous dividend yields, then you might want to look at the dividend shares listed below.

Here’s what is expected from them in FY 2021:

Rural Funds Group (ASX: RFF)

The first dividend share to look at is Rural Funds. It is an agriculture-focused property group that owns a number of properties across five agricultural sectors. These properties are leased to some of the biggest operators in the industry, such as wine giant Treasury Wine Estates Ltd (ASX: TWE), on long term rental agreements.

These long leases have rental increases built into them, giving the company great visibility on its future earnings. So much so, management aims to increase its distribution each year by approximately 4%.

Pleasingly, it plans to do exactly this in FY 2021 and is forecasting an 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 4.55% yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. While the telco giant has been a big disappointment for income investors over the last five years, the dividend cuts finally appear to be over and its dividend now looks sustainable for the foreseeable future.

And thanks to its T22 strategy, it may not be too long before a return to both earnings and dividend growth is possible.

Analysts at Goldman Sachs are forecasting a 16 cents per share fully franked dividend through to FY 2023. Based on the current Telstra share price, this represents a 5.15% dividend yield.

The broker has a buy rating and $3.75 price target on the company’s shares at present. It is positive on Telstra’s prospects and supports its decision to look to monetise its TowerCo assets. It also appears to be a fan of its overall plan to split the company up into separate entities to unlock value.

More reading

• Telstra furious about freebies to Optus, TPG
• This ASX company’s in a comfy duopoly with NBN
• Broker lists the best ASX stocks to own for an up to 30% gain in 2021
• Think you saw growth in 2020? Just wait for 2021: fundie
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus

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, Telstra Limited, and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index sank 0.8% to 6,663 points.

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

ASX 200 expected to rebound.

The Australian share market looks set to bounce back from yesterday’s decline. According to the latest SPI futures, the ASX 200 is poised to open 34 points or 0.5% this morning. This follows a largely positive night of trade in Europe on Monday. US markets were closed for Martin Luther King Jr. Day.

NAB rated conviction buy.

Goldman Sachs has been running the rule over the banking sector. It appears much more positive on the banks and particularly National Australia Bank Ltd (ASX: NAB). The broker has put a conviction buy rating on NAB’s shares and increased the price target on them to $24.72. It has, however, downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a sell rating with a $9.24 price target.

Oil prices slide.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 0.5% to US$52.09 a barrel and the Brent crude oil price has fallen 0.65% to US$54.74 a barrel. Concerns over rising COVID cases has been weighing on oil prices.

Gold price rises.

It could be a better day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price recovered slightly. According to CNBC, the spot gold price is up 0.4% to US$1,836.80 an ounce. Investors have been buying gold after COVID cases surged globally.

JB Hi-Fi given neutral rating.

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued now according to analysts at Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target on the retailer’s shares to $51.60. Although its performance in FY 2021 is well ahead of the broker’s forecasts, Goldman expects its earnings to normalise over the next couple of years.

More reading

• 3 ASX 200 shares that keep growing their dividends
• Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO
• ASX 200 drops 0.8%
• RBA warns that low rates don’t come without cost
• ASX dividends: Are miners the new bank shares?

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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There are some S&P/ASX 200 Index (ASX: XJO) shares that keep growing their dividend every year.

Plenty of large ASX dividend shares didn’t grow the dividend in FY20, like Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

But there are some ASX 200 shares that keep growing the dividend, like these:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX 200 share that has increased its dividend for the longest number of years in a row. It has a consecutive dividend growth streak going back to 2000.

It operates as an investment conglomerate. That means it owns both listed and unlisted investments. Some of its listed investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC).

Unlisted investments include agriculture, financial services, resources and swimming schools.

The ASX 200 dividend share retains some of its cashflow each year to re-invest into more opportunities.

At the current Soul Patts share price it has a grossed-up dividend yield of 3.1%.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi has increased its dividend consistently over the past several years. Consistent growing of profit over the long-term has helped fund those dividend increases.

In FY20, which included COVID-19, the ASX 200 dividend share grew total sales by 11.6% to $7.9 billion, underlying net profit after tax rose by 33.2% to $332.7 million and underlying earnings per share (EPS) went up 33.2% to 289.6 cents.

JB Hi-Fi’s final dividend went up 76.5% to 90 cents per share whilst the total FY20 dividend rose by 33.1% to 189 cents per share.

The continuing growth is evident in JB Hi-Fi’s FY21 half-year update. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million.

Management said that sales momentum was strong throughout the half, with continued elevated customer demand for consumer electronics and home appliances products. This, combined with high growth of online sales and a strong Black Friday sales period, more than offset the impact of the government mandated temporary store closures during the half. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.

The ASX 200 share said that gross margins were well managed with strong improvements in gross margins in key categories, particularly in The Good Guys, but was offset by the sales mix in JB Hi-Fi Australia and JB Hi-Fi New Zealand.

JB Hi-Fi also said that disciplined cost control combined with strong sales growth drove significant operating leverage. It didn’t receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.

At the current JB Fi-Fi share price it has a grossed-up dividend yield of 5.1%.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Domino’s is another ASX 200 share that has steadily grown its dividend over the past several years, by a substantial amount.

The pizza ASX 200 share has grown its store count globally, increased its same store sales and improved its technology further for both customers and the pizzamakers.

In FY20 it saw its network sales rise by 12.8% to $3.27 billion, with online sales surging 21.4% with it being boosted during the COVID-19-affected period. FY20 EBIT went up 3.6% to $228.7 million and free cashflow rose 90.7% to $161.9 million. The number of stores increased by 6.5% to 2,668 stores globally across ANZ, Japan and Europe.

The result helped the Domino’s board decide to increase the full year dividend by 3.3% to 119.3 cents.

Over the next three to five years it’s hoping to achieve annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. Over the long-term it thinks it can reach a total of over 5,500 stores.

At the current Domino’s Pizza Enterprises share price it has a grossed-up dividend yield of 2.1%.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 Globe International Limited (ASX: GLB) share price powered up today as the company released a trading update. Shares in the skate-shop were up 34.3% at a price of $4.50 at close of trade.

The news comes after a superb 6 months for the company, which has seen a number of announcements send its share price soaring 267%.

Market update

This afternoon, shares in the consumer discretionary company were rocketing off the back of a positive performance update for the first half of FY21.

Globe advised that preliminary sales for the half year were around $125 million, up approximately 60% compared to the prior corresponding half. Earnings before interest and tax (EBIT) is estimated to exceed $20 million. This compares to the $4.2 million achieved in the prior half, marking an increase of 376%.

The company plans to announce its half year results late in February. A more complete view of the results and a full year outlook will be provided then. Globe noted that the information in this trading update is unaudited and remains subject to finalisation.

What Globe does

Globe is a global producer and distributor of purpose-built apparel, footwear, and hardgoods for the board sport, street fashion and workwear markets. 

Founded in 1985 by three brothers, its business is divided between proprietary brands, licensed brands, and distributed brands. The main of which is ‘Globe’, a large skating brand.

The Australian based small cap currently boasts a market capitalisation of $138 million, and sells its products in 100 countries worldwide. In addition, Globe is paying a trailing dividend yield of 2.59%.

About the Globe share price

Today’s 34.3% increase in the Globe share price marks a 52-week high for the company.

It comes after a positive 2020 for the company, which saw its shares gain 146% despite COVID-19 disruptions. In contrast, the All Ordinaries Index (ASX: XAO) dropped 3.6% during the same period.

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Motley Fool contributor Daniel Ewing 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.

The post Globe (ASX:GLB) share price rockets 34% as sales soar appeared first on The Motley Fool Australia.

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