Tag: Motley Fool

The Beacon Lighting Group Ltd (ASX: BLX) share price is one to watch this morning after the company provided a key announcement before the market open.

What did Beacon Lighting announce today?

Beacon provided updated sales and net profit after tax (NPAT) guidance for the 26 weeks ending 27 December 2020. The Aussie retailer said trading conditions have supported online sales channels which has been reflected in strong sales performance year to date.

The company’s first-half group sales guidance for FY2021 is now sitting at $147.0 million to $152.0 million. That’s a significant increase on Beacon Lighting’s prior year actual sales of $122.5 million.

Beacon provided NPAT guidance of $19.5 million to $21.5 million, more than double the $9.5 million actual NPAT from the first half of 2020.

The Beacon Lighting share price will be one to watch in early trade following the latest trading update from the $317.1 million market capitalisation retailer.

CEO Glen Robinson noted the “terrific momentum” in a period which has been “very difficult” for so many businesses. The latest update reflects the improving trading and economic conditions across Australia with online-focused retailers performing strongly.

Beacon International sales continue to be “exciting” for the company alongside the improved store, online and trade traffic performance for the group.

How has the Beacon Lighting share price been performing?

Shares in the Aussie retailer are up 19.3% to $1.42 per share in 2020 including a 222.7% gain since the bottom of the March bear market.

In comparison, the S&P/ASX 300 Index (ASX: XKO) is down 0.7% for the year and trading at 6,609.8 points despite a strong final quarter of trading heading into Christmas.

The Beacon Lighting share price is trading at a price-to-earnings (P/E) ratio of 14.1 with a dividend yield of 3.5% p.a. prior to Wednesday’s market open.

Foolish takeaway

The Beacon Lighting share price is one ASX small-cap share to watch in early trade following the Aussie retailer’s latest sales and NPAT guidance update.

More reading

• The ASX bank with the best dividend yield under APRA’s new guidelines
• Here’s how ASX 200 bank shares have performed in 2020 so far
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 falls on Tuesday
• ASX 200 down 0.1%: APRA removes bank dividend restrictions, Fortescue slides, Zip higher

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.

The post Why the Beacon Lighting (ASX:BLX) share price is on watch today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/387DWwv

This has been a frustrating year for shareholders of California-based healthcare company ResMed Inc (ASX: RMD). Despite the ResMed share price rising almost 25% to $27.41 so far in 2020, shareholders have had to endure a fair amount of volatility to get here. It seemed like every time ResMed shares looked set to cross over the psychological $30 barrier, they ended up crashing lower.

What does ResMed do?

ResMed develops medical equipment for the treatment of respiratory conditions, with a particular focus on sleep apnoea. Early in the COVID-19 pandemic, the company announced it had ramped up production of various ventilator systems and equipment to help treat coronavirus patients suffering from respiratory complications.

What has driven the ResMed share price volatility?

The ResMed share price plunged 7% the day the company released its full year results to the market back at the beginning of August. This was despite ResMed reporting a 13% increase in revenues year on year to US$3 billion, and a 40% jump in net operating profit.

Revenues across most geographies were boosted due to increased demand for ResMed’s ventilators during the COVID-19 pandemic. However, demand for the company’s sleep devices in key markets across the United States, Canada and Latin America declined during the year.

ResMed’s first quarter FY21 results, released late October, told a similar story, and yet the share price rose sharply in response. Revenues for the quarter increased 10% against the prior comparative period to US$751.9 million, while net operating profit surged 27%.

Again, the result was driven primarily by increased sales of ventilators, partially offset by decreased demand for sleep devices in the US, Canada, and Latin America. Selling, general and administrative expenses also continued to decline due to prudent cost management during the pandemic.

Due to how similar these two results actually were, it’s hard to say why the market responded so differently to them. However, it’s worth noting that there was a fair amount of noise in ResMed’s FY19 result as the company settled some large legal expenses that year, which inflated the relative year-on-year performance for FY20. The first quarter result for FY21 excludes a lot of that noise, giving a cleaner picture of the company’s underlying performance.

There is also the simple fact that general optimism around the rollout of a COVID-19 vaccine early in 2021 has boosted the performance of the ASX more broadly. The release of ResMed’s FY20 results coincided quite closely with the introduction of Melbourne’s harshest lockdown, and Victoria’s COVID-19 cases were spiking. The performance of the broader S&P/ASX 200 Index (ASX: XJO) was languishing during this period, and only really started gathering momentum again in early November – around the time ResMed released its first quarter FY21 result.

The biggest disappointment for ResMed shareholders is that the company has underperformed relative to New Zealand-based competitor Fisher & Paykel Healthcare Corp Ltd (ASX: FPH). The Fisher & Paykel share price has gained close to 44% so far this year without the same level of volatility.

As COVID-19 vaccine rollouts progress throughout the world in 2021, it will be interesting to track both companies’ earnings to see how dependent they have been on increased ventilator sales.

More reading

• ASX healthcare shares could outperform in 2021: Fundie
• These are 8 of the best performing ASX healthcare shares of 2020 so far
• 5 ASX shares rated as buys by top fundie
• ASX stock of the day: Immutep (ASX:IMM) shares blast up 60% on trial news
• 2 fantastic ASX healthcare shares to buy for 2021

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The ResMed (ASX:RMD) share price is up 25% in 2020 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mo69V0

The ASX banking sector, and ASX bank shares by extension, are implicitly the cornerstone of the S&P/ASX 200 Index (ASX: XJO) Not only do the big four ASX banks make up close to a fifth of the overall ASX 200 by weighting, but the banks are also some of the most-held shares in the retail investor community.

Investors have long been attracted to the banks for their strong, often iconic brands, formidable position in their respective markets, and (of course) a reputation for hefty, fully franked dividend payments.

But 2020 has brought its own unique challenges to the banking sector, which has been evident in the banks’ share price performance over 2020 so far. So let’s have a look at how the ASX bank shares have come through 2020. As a benchmark in this endeavour, the ASX 200 is currently carrying a 0.9% loss year to date:

ASX Bank Share (by market capitalisation)	YTD share price gain (as of 15 December)	Dividends paid in 2020 (cents/share)	2020 trailing dividend yield	Market Capitalisation
Commonwealth Bank of Australia (ASX: CBA)	3.99%	298	3.59%	$147.37 billion
National Australia Bank Ltd (ASX: NAB)	(4.84%)	60	2.57%	$76.93 billion
Westpac Banking Corp  (ASX: WBC)	(17.61%)	31	1.56%	$71.98 billion
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	(6.44%)	60	2.61%	$65.24 billion
Macquarie Group Ltd (ASX: MQG)	–	315	2.29%	$49.72 billion
Bendigo and Adelaide Bank Ltd (ASX: BEN)	(5.18%)	31	3.32%	$4.96 billion
Bank of Queensland Limited (ASX: BOQ)	7.42%	12	1.53%	$3.56 billion

ASX banks have a year to forget

As you can see, 2020 has been a difficult year for ASX bank shares. All but CBA, Macquarie and Bank of Queensland have gone backwards over the year to date, with Westpac leading the charge (so to speak) with a 17.61% year-to-date slide. Interestingly, Macquarie was exactly flat for the year on yesterday’s closing share price.

It’s worth pointing out that most of the factors that have led to this weak performance have been macro in nature, thus affecting all of the banks in equal measure. First and foremost has been the coronavirus-induced recession we have seen this year – the first in almost three decades for the Australian economy.

Banks are usually regarded as cyclical shares, rising and falling in line with economic growth. When the economy is growing, there is typically higher demand for credit and less pressure on loan delinquency. But the reverse is also true. Most consumers in the economy don’t tend to want to borrow money amid the employment uncertainty, falling asset prices and falling incomes that a recession often brings.

However, this recession has seen an unprecedented intervention by governments into the economy. Programs such as JobKeeper and the coronavirus supplement have mitigated much of the damage that the recession brought on, which is likely why the losses in the ASX bank sector year to date haven’t been, frankly, larger. Remember, back in the global financial crisis of 2008-09, CBA shares fell from over $60 a share to under $24. Luckily, ASX bank shareholders escaped that kind of carnage this time around.

Interest rates, dividends weigh on share prices

We have also seen interest rates hit record lows in 2020. Australia looks set to finish the year with a cash rate of just 0.1%, which is practically zero. When rates are this low, it affects the banks’ ‘spread’, or the difference between what the banks pay in interest on deposits, and the interest they receive on loans. Since the interest they pay on deposits is also approaching zero, there isn’t too much room for the banks to lower interest rates on mortgage rates and loans without cutting into profitability. This is also a likely factor at play here.

However, it is worth discussing the divergence between the different banking shares. CommBank is up 4% for the year, whilst Westpac is down close to 18%. We can’t explain that away with ‘macro’ factors. Well, the answer is probably simple.

CBA was the only ASX bank fortunate enough to have an interim payment hit its shareholders’ bank accounts before the coronavirus recession got going back in early March. That is why we see a far higher trailing dividend yield for CBA shares in 2020 than most of the other ASX banks. Additionally, CBA was not forced to raise capital in the midst of the pandemic, unlike NAB.

Meanwhile, ANZ deferred its interim dividend, whilst Westpac declined to pay one altogether, along with Bendigo Bank and Bank of Queensland. Additionally, Westpac was also hit with a whopping fine of $1.3 billion back in September, a corporate record. This would have further impeded the bank’s ability to pay dividends.

All in all, most ASX investors would have felt the impact of the ASX banking sector on their personal wealth, whether that be through direct ownership of shares, ASX 200 index funds or their superannuation funds

More reading

• Why ASX banks are licking their lips right now
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 falls on Tuesday
• Here are the US shares ASX investors are buying
• ASX 200 down 0.1%: APRA removes bank dividend restrictions, Fortescue slides, Zip higher

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s how ASX 200 bank shares have performed in 2020 so far appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3gRmX5J

Despite near-zero interest rates, the big ASX-listed banks have some excellent news to see in the new year.

Evidence from multiple sources is showing that the housing market is heating up for a massive post-COVID surge.

“It seems likely that residential property transactions will increase by a quarter in 2021 as, in addition to homebuyers, we’re now seeing property investors also returning to the fold — lured by the prospect of neutral-to-positively geared investments,” said BuyersBuyers.com.au chief operating officer Pete Wargent.

“Now it’s notable that they’re feeling confident enough to buy again.”

Commonwealth Bank of Australia (ASX: CBA) has noticed the effects of the Reserve Bank’s November rate cut among Australian households.

“Home buying spending intentions jumped higher last month, which was consistent with our expectations that the improvement in the Australian economy and the further interest rate cuts associated would see a restrengthening of the home buying market,” said CBA chief economist Stephen Halmarick.  

National Australia Bank Ltd (ASX: NAB) home ownership executive Andy Kerr said mortgage applications were at a frenzy at the moment.

“First home buyers are back in the market at levels we haven’t seen for a decade,” he said.

“Demand has been supported by historically low interest rates and more government support, such as the First Home Loan Deposit Scheme and HomeBuilder. A brief pullback in property prices also helped first-home buyers as the uncertainty of COVID-19 put many plans on ice, with investor demand slowing noticeably.”

Low margin but higher volume

This is all excellent news for the major banks like NAB, CBA, Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Their fortunes have always had a strong correlation to the health of the Australian real estate market.

Yes, extremely low interest rates this time don’t leave the banks much margin — but the volume of new clientele might soothe the pain.

BetaShares chief economist David Bassanese said the low rates had “dramatically improved housing affordability” and real estate prices would jump up next year.

“The [COVID-19] peak-to-trough decline in national house prices has been only around 2% — far less than even some of the best-case scenarios touted only a few months ago,” he said.

“I personally anticipated a decline closer to 10%”

Most experts agree with Bassanese that the market is hot again and housing prices would ramp up in 2021. Earlier this month, a Finder survey found 24 out of 28 finance experts forecasting that real estate prices would exceed 2019 levels in the coming year. 

Even the Reserve Bank thinks Australian banks will be just fine, despite the ultra-low rates that it set.

“Australian banks are better prepared than they were prior to the GFC,” head of financial stability Jonathan Kearns said in a speech on Tuesday.

“Their much higher liquid asset holdings helped earlier this year. Banks are well capitalised. Importantly they have large buffers which are there to be used, not preserved, and will enable them to continue lending and supporting their customers, and so the economic recovery.”

A crazy year for real estate

Wargent said the way the property market panned out this year has been remarkable.

“2020 has been one of the most unusual years on record for real estate markets in Australia,” he said.

“We came into the year with relatively low unemployment and confidence running at a solid clip, but as the first quarter of the calendar year progressed it became increasingly clear that significant disruption could be on the cards.”

But just a half-year later, real estate has flipped around once again.

ASX-listed banks and their shareholders had more good news on Tuesday. 

Financial watchdog Australian Prudential Regulation Authority (APRA) announced it would no longer require banks to retain at least half of their earnings. This means the companies are free to restore dividends back to the high levels traditionally seen in the Australian finance sector.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 falls on Tuesday
• Here are the US shares ASX investors are buying
• ASX 200 down 0.1%: APRA removes bank dividend restrictions, Fortescue slides, Zip higher
• APRA removes dividend restrictions for the banks

Motley Fool contributor Tony Yoo 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 Why ASX banks are licking their lips right now appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37nYEc8

Global share markets are rising whilst the world anticipates a COVID-19 vaccine. There are some ASX shares that could be worth watching.

Here are three options that are displaying growth credentials:

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical is a fund manager that aims to invest ethically on behalf of its investors. Its funds try to avoid businesses that are doing harm to the environment, people and animals. Australian Ethical invests in companies that are creating new technologies, building a clean future, finding medical solutions, create more sustainable products and so on.

According to the ASX it currently has a market capitalisation of $562 million.

In FY20 the ASX share reported that revenue was up 22% to $49.9 million. It generated a performance fee of $3.6 million from outperformance of the Emerging Companies Fund, which was 350% higher than FY19’s performance fee.

Underlying profit after tax grew by 42% to $9.3 million whilst actual net profit after tax grew by 46% to $9.5 million. Excluding the impact of the performance fee, revenue and underlying net profit both rose by 15%. The total dividend per share of 6 cents was 20% higher than FY19.

This result came from a 19% increase of funds under management (FUM) to $4.05 billion with net inflows of $660 million (which was 100% higher than last year). Australian Ethical also said that customer numbers went up 20%.

This result was followed up by the first quarter of FY21 where total FUM increased by 6.5% to $4.32 billion thanks to $150 million of net inflows and $110 million of market performance.

However, the Australian Ethical share price has fallen by 45% in just under six months.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is a business that produces a number of dairy products for consumers, it has a reputation for quality. Some of those dairy products include infant formula, liquid milk, milk powder and A2 Milk. Ophir High Conviction Fund (ASX: OPH) is a high-performing fund manager that holds A2 Milk as one of its largest positions and still really likes the long term potential of the business.

According to the ASX, A2 Milk has a market capitalisation of almost $10 billion.

The A2 Milk share price has fallen by around a third in just under five months. The company has warned for a while that FY21 could be impacted by COVID-19 effects and a moderation of economic activity, which could impact parts of the supply chain.

In the first half of FY20 it’s also suffering from the pantry destocking effect and lower daigou sales because of reduced tourism from China and international student numbers. A2 Milk also said it was hit by the stage 4 lockdown in Victoria which disrupted corporate daigou.

The ASX share is expecting its revenue to fall by around 4% to 10% in the FY21 first half to be in a range of NZ$725 million to NZ$775 million. The full year revenue is expected to keep growing and rise by 4% to 10% to NZ$1.8 billion to NZ$1.9 billion.

However, A2 Milk said its underlying China infant formula business is performing soundly as well as the liquid milk business in Australia and the US. Management believes the impacts on the daigou channel are temporary. A2 Milk noted that its daigou infant formula sales is only one part of its multi-channel and multi-product strategy into China.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This exchange-traded fund (ETF) is an ASX share that gives exposures to 50 of the largest Asian technology businesses outside of Japan.

Some of those names include Samsung, Taiwan Semiconductor Manufacturing, Tencent, Meituan, Alibaba and JD.com

More than half of the ETF is invested in Chinese businesses. There’s another 20.2% allocated to Taiwan, 17.4% is weighted to South Korea and 5.1% is invested in Indian tech shares. The remainder is invested in Hong Kong and ‘other’.

In terms of sector allocation, almost a third is invested in internet and direct marketing retail, semiconductors make up 18.7% of the ETF and 16.8% is invested in interactive media and services. Other tech sectors make up the rest of the ETF’s allocations. 

The ETF has a 0.67% annual management fees and it has delivered average returns per annum of 32.3% since inception in September 2018.

More reading

• Top ASX shares to buy in 2021
• 3 ASX ETFs to buy in 2021
• 10 highly rated ASX shares to buy in 2021
• 5 ASX shares rated as buys by top fundie
• 2 popular international ETFs for ASX investors to buy

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 Australian Ethical Investment Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got cash to invest? Here are 3 ASX growth shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3agK8F8

The S&P/ASX 200 Index (ASX: XJO) may have tumbled lower on Tuesday but that didn’t stop a number of shares from pushing higher.

In fact, a few even managed to climb so much they reached 52-week highs or better.

Three ASX shares that are flying high right now are listed below. Here’s why they are on form:

Orocobre Limited (ASX: ORE)

The Orocobre share price hit a two-year high of $4.33 on Tuesday. Investors have been buying the lithium miner’s shares in recent months after the price of the battery making ingredient started to recover after a significant weakening in prices over the last couple of years. This rebound in lithium prices is being driven by optimism over electric vehicle adoption. One broker that still believes the Orocobre share price can go higher is UBS. It recently put a buy rating and $4.90 price target on its shares.

Reece Ltd (ASX: REH)

The Reece share price climbed to a record high of $15.93 yesterday. Investors have been buying the plumbing parts company’s shares this year thanks to its strong performance during FY 2020. For the 12 months ended 30 June, Reece delivered a 10% increase in sales revenue to $6,010 million and a 19% lift in net profit after tax to $202 million. This was driven largely by strong growth from its US business. In addition to this, the Reece share price was given a lift this week when S&P Dow Jones Indices revealed that Reece would be added to the ASX 200 at the next quarterly rebalance.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price hit a new record high of $51.64 on Tuesday. The catalyst for this has been the company’s very positive performance during the pandemic. After delivering a solid result in FY 2020, Wesfarmers is on course for more of the same in FY 2021. A recent trading update reveals that it achieved strong sales growth across the business during the first four months of the financial year. The key Bunnings business was a highlight, delivering a 25.2% jump in sales during the period. This was driven partly by customers spending more time undertaking projects around the home. Also giving the Wesfarmers share price a boost was a note out of Credit Suisse this week. Its analysts retained their outperform rating and lifted the price target on Wesfarmers’ shares to $55.83.

More reading

• Why Amaysim, Orocobre, Pacific Smiles, & Xero shares are pushing higher
• Wesfarmers (ASX:WES) share price is on fire, up 3% to reach all-time high
• Why the Webjet (ASX: WEB) share price is climbing higher
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Wesfarmers and these ASX shares just hit 52-week highs or better appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2K8UgF9

The three ASX dividend shares in this article have a reputation for continually increasing their dividends.

Income growth from plenty of shares has been rare in 2020 because of the COVID-19 pandemic and its impacts.

With that in mind, these three ASX dividend shares keep growing their dividends for shareholders:

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

Soul Patts has the longest-running dividend growth streak record on the ASX. It has increased its dividend every year since 2000.

The ASX dividend share has an investment portfolio comprised of a number of different investments including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI), Milton Corporation Limited (ASX: MLT), Clover Corporation Limited (ASX: CLV) and Palla Pharma Ltd (ASX: PAL).

The business funds its dividend from the cashflow from its investments, namely being the dividends and distributions. It retains some cashflow profit each year to invest into new opportunities.

Some of its latest investments include agriculture and luxury retirement homes. It has also made an investment into Retail Food Group Limited (ASX: RFG) and launched a takeover offer for Regis Healthcare Ltd (ASX: REG), but that was rejected.

Soul Patts currently has a fully franked dividend yield of 2%.

Sonic Healthcare Ltd (ASX: SHL)

This ASX dividend share has been increasing its dividend every year in a row for almost a decade.

Sonic is a global pathology business. It’s also involved in testing for COVID-19 cases in several of the countries that it operates.

The healthcare stock is actually seeing a return to growth in its core laboratory pathology business in most countries compared to the prior corresponding period, aside from the US and UK.

But the COVID-19 tests are adding to Sonic’s earnings this year. Sonic said that in the first three months of FY21 it generated total revenue growth of 29% and earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 71% after a focus on reducing costs.

Since that update the winter has seen an escalation of COVID-19 cases in the northern hemisphere. Indeed, the US is currently reporting daily new COVID-19 cases of around 200,000.

Sonic currently has a partially franked dividend yield of 2.6%.

APA Group (ASX: APA)

This ASX dividend share has increased its distribution every year for the past decade and a half.

APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

The infrastructure ASX dividend share funds its dividend from its operating cashflow. In FY20 it reported that its revenue went up 4.9%, EBITDA grew by 5.1% to $1.65 billion, operating cashflow rose by 8.3% to almost $1.1 billion and net profit after tax (NPAT) rose 10.1% to $317 million. The distribution was increased by 6.4% to 50 cents per unit in FY20. 

A few weeks ago APA announced it was investing up to $460 million to construct a new 580km pipeline in Western Australia to connect emerging gas fields in the Perth Basin to the resource rich Goldfields region to form an interconnected gas grid in WA. This Northern Goldfields Interconnect will connect to APA’s Goldfields Gas Pipeline (GGP). APA also said that this has the potential to unlock hundreds of millions of dollars of investment in the Goldfields region.

APA currently has a trailing distribution yield of 4.9%.

More reading

• 5 ASX dividend shares to buy for income in 2021
• 3 top ASX shares rated as buys by fund managers
• ASX 200 up again on Wednesday
• Why ‘ASX dividend king’ Soul Patts (ASX:SOL) is a top income share for 2021
• Washington H. Soul Pattinson (ASX:SOL) share price rises 2% after upbeat AGM

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 ASX shares that keep growing their dividends every year appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3nmEPaN

One area which has been tipped as a place to invest for the long term is the tech sector.

This is because this sector is filled to the brim with companies that have the potential to grow significantly in the future.

But which tech shares should you buy? Three to consider are listed below:

Kogan.com Ltd (ASX: KGN)

Kogan has been an outstanding performer this year thanks to the seismic shift to online shopping because of the pandemic. The ecommerce company has seen its customer numbers and sales grow materially, underpinning exceptional earnings growth. Kogan has also taken advantage of its impressive share price rise by raising funds to provide it with the firepower to make value accretive acquisitions. One of which was announced this month – the $122 million acquisition of New Zealand-based online retailer Mighty Ape. Analysts at Credit Suisse were pleased with the acquisition and put an outperform rating and $20.60 price target on its shares.

Nearmap Ltd (ASX: NEA)

Another tech share that is aiming to grow at a strong rate in the future is Nearmap. This leading aerial imagery technology and location data company is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum over the long term. It is also targeting churn levels under 10%. This growth is expected to be underpinned by new growth initiatives and geographic expansion. The launch of new products, such as its highly rated AI product, should also be supportive of growth. Morgan Stanley is positive on the company’s prospects and has an overweight rating and $3.10 price target on its shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a fast-growing donor management and engagement platform provider. It has been a very positive performer this year after its strong growth was bolstered by the pandemic. Pleasingly, this impressive form has continued in the first half of FY 2021. Pushpay delivered a 53% increase in operating revenue to US$85.6 million and a 177% jump in EBITDAF to US$26.7 million. This is still only scratching at the surface of management’s long term revenue target of US$1 billion. Goldman Sachs is a fan of the company. It has a conviction buy rating and ~$2.59 price target on its shares.

More reading

• ASX 200 falls on Tuesday
• Top ASX shares to buy in 2021
• Why the Pushpay (ASX:PPH) share price is in a trading halt
• 5 things to watch on the ASX 200 on Tuesday
• These are 10 of the best performing ASX tech shares of 2020 so far

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 Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Kogan.com ltd 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.

The post 3 exciting ASX tech shares to buy in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3nmlrLj

The three ASX growth shares in this article could be worth watching.

Let’s get into those names:

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts business that provides vehicle parts, accessories, equipment, service and solutions to the Asia Pacific region. It’s liked by the funds management outfit Wilson Asset Management. It’s a top-20 holding of the listed investment company WAM Research Limited (ASX: WAX).

A couple of months ago Bapcor released a trading update for FY21 which showed Bapcor’s total revenue had a fast growth rate of 27% over the prior corresponding period, with retail revenue rising 47% and specialist wholesale revenue going up 45%.

The fund manager said that the ASX share has benefited from an increase in domestic travel, reduced usage of public transport and increased second-hand car sales. WAM said that Bapcor has a strong balance sheet and the fund manager believes the company is well placed to make earnings-accretive acquisitions.

In the recent trading update, Bapcor CEO Darryl Abotomey spoke of the company’s defensive qualities: “The automotive market is a resilient industry and historically has performed strongly in difficult economic circumstances. Recent trading is another example of its resilience assisted by the increase in sales on second hand cars, reduction in use of public and shared transport modes as well as government stimulus.”

Audinate Group Ltd (ASX: AD8)

Audinate is an IT business which owns and operates the Dante platform which distributes and audio signals across computer networks. The ASX share says that it’s the lead supplier of digital and audio video networking for the professional AV industry.

In the most recent trading update for the first quarter of FY21, Audinate said that there had been a steady improvement in trading conditions since May. Audinate’s customer and market segments have been impacted differently so far.

Management said there is good momentum in the corporate conference and higher education, however Audinate said there are still challenging conditions in the live sound and large events sector because of COVID-19 impacts and restrictions.

Audinate revealed that in the first three months of FY21 it made US$5.2 million of revenue. The ASX share also made AU$0.3 million earnings before interest, tax, depreciation and amortisation (EBITDA).

One of the fund managers that likes Audinate is Climate Capital Ltd (ASX: CAM). It said that the recent sales resilience reflect the ASX share’s diverse customer base and industry unit volumes are expected to rise significantly in the coming years, with the company likely to capture a lot of this demand because it has an adoption rate that’s eight times higher than the nearest competitor.

EML Payments Ltd (ASX: EML)

This ASX share has a number of different payment services for clients to use. EML Payments has general purpose reloadable offerings such as gaming payouts with white label gaming cards, salary packaging cards, commission payouts and rewards programs. EML Payments also offers physical gift cards, shopping centre gift cards and digital gift cards. Finally, it offers virtual account numbers.

EML Payments is also seeing a recovery of its revenue and profit. In the first quarter of FY21, revenue grew 75% to $40.6 million compared to the prior corresponding period and that was 20% higher than the fourth quarter of FY20.

In that update it also reported it was comfortably profitable. It generated $10 million of earnings before interest, tax, depreciation and amortisation in the first quarter, which was up 215% compared to the prior corresponding period and up 69% compared to the FY20 fourth quarter.

More reading

• Aussie dollar breaking to new 30-month high will boost these ASX stocks
• 3 ASX tech shares to buy for the long term
• 3 top ASX shares rated as buys by fund managers
• 3 compelling ASX payment shares to buy
• 2 exciting small cap ASX shares to watch

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

The post 3 ASX growth shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mm8MXs

Are you looking to buy some dividend shares this month? Then listed below are two shares to take a closer look at.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent is a leading footwear-focused retailer which owns a number of retail store brands. This includes the likes of HYPE DC, Platypus, The Athlete’s Foot, and Sneaker Lab. Accent has also recently launched a couple of new brands, Australian Stylerunner and Pivot. This is part of its store expansion plan, which is aiming to add approximately 80 new stores in FY 2021.

It has been a strong performer in 2020 despite the pandemic. For example, a recent update reveals that its like for like sales are up 15.7% during the first 20 weeks of the financial year, excluding its Auckland and Victorian stores. Management also advised that its online sales are up 129% over the period.

In light of this, analysts at Citi are forecasting a 7.5 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a 3.5% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT). It owns a diversified portfolio of high quality Australian agricultural assets that are leased to experienced agricultural operators.

At the end of FY 2020, Rural Funds owned a total of 61 properties with a combined value of $1 billion and a weighted average lease expiry (WALE) of 10.9 years. From this, it was generating adjusted funds from operations (AFFO) of 11.7 cents per share, which allowed its board to declare a full year distribution of 10.8 cents per share.

Thanks to those long leases and rental increases, the company intends to grow this distribution by its 4% per annum target growth rate in FY 2021. This will mean a 11.28 cents per share distribution for shareholders. Based on the current Rural Funds share price, this works out to be a 4.55% yield.

More reading

• These ASX dividend shares will help you overcome low interest rates
• 5 ASX dividend shares to buy for income in 2021
• ASX retail shares gear up for Christmas boom
• Forget term deposits and buy these ASX dividend shares
• 2 highly rated ASX dividend shares to buy

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 has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2K6Nb8d