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The De Grey Mining Limited (ASX: DEG) share price has been a positive performer on Thursday despite weakness in the gold sector.

In morning trade the gold-focused mineral exploration company’s shares are up 2.5% to $1.16.

Why is the De Grey Mining share price pushing higher?

Investors have been buying De Grey Mining’s shares this morning after it released further drilling results from its Hemi prospect in Western Australia.

Today’s update relates to activities at the Aquila and Crow zones which are located adjacent and to the north of the large Brolga intrusion at Hemi.

According to the release, step out and infill drilling at Hemi is on-going and the latest results at Aquila and Crow continue to firm up areas of high grade gold mineralisation within a much larger and broader gold system.

Management notes that some outstanding high-grade intercepts continue to be returned at Crow, whereas drilling at Aquila is continuing to extend the high grade plunging shoot to the west.

Management commentary.

De Grey’s Managing Director, Glenn Jardine, was pleased with the latest set of results.

He commented: “The new results at Crow continue to demonstrate potential for higher grade lodes within the large, broad mineralised zones. The Company recently announced extensions to the northwest of Crow. Potential also remains for extensions to the northeast and southwest.”

More drilling is on the way and results are due in the near term from these activities.

Mr Jardine explained: “Wide spaced 80 by 80m extensional RC drilling continues in the northwest of Crow, with assay results awaited. Aircore drilling further to the west of the Crow intrusive has identified areas for follow up RC drilling. Drilling will continue at Crow to infill and expand the mineralised footprint. Drilling at the western end of Aquila continues and has extended mineralisation at depth and to the west toward Falcon.”

What now?

De Grey is on course to reveal its maiden resource estimate in the middle of next year.

“A broad mineralized zone is present at least 400 metres below surface that includes narrower high grade intervals. Total metres drilled at Hemi now exceed 200,000 metres since the discovery in December 2019. Seven rigs are currently operating around Hemi in support of completion of a maiden resource by the middle of 2021,” the managing director advised.

More reading

• Why the Paradigm (ASX:PAR) share price is climbing higher today
• Xero (ASX:XRO) share price hits record high after delivering strong first half growth
• Is the Commonwealth Bank (ASX:CBA) share price in the buy zone?
• 2 ASX dividend shares growing their dividend every year
• Wesfarmers (ASX:WES) share price on watch after FY 2021 trading update

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is climbing higher today on news the company has started Phase 2 trials of pentosan polysulphate sodium (iPPS).

In early morning trade, the Paradigm share price is up 1.62% to $3.13.

Phase 2 trial commences

Paradigm advised that it has started Phase 2 trials of iPPS to treat patients who suffer from orphan disease Mucopolysaccharidosis Type 1 (MPS-1).

Led by principal investigator, Dr David Ketteridge, the open label study will recruit up to 10 participants who meet specific criteria. Those enrolled in the trial will receive one of two dosing cohorts, either 0.75mg/kg or 1.5mg/kg. The drug will be administered weekly as an injectable dose for the first 12 weeks and then every second week for the 11-month duration.

Paradigm will seek to primarily assess the safety of iPPS in patients and evaluate if treatment can successfully alleviate pain. The biopharma company said its first patient has been enrolled and had received the first dose of iPPS.

The Phase 2 study will be undertaken at the Adelaide’s Women & Children’s hospital.

What is MPS-1?

Mucopolysaccharidosis type 1 is a rare metabolic disorder caused by a genetic defect when born. The disorder catabolises heparan sulphate and dermatan sulphates which cause a raft of problems for sufferers. They include abnormal bone development, irregular growth, cardiac and respiratory problems, and sometimes cognitive impairment.

Current treatments available are enzyme replacement therapy (ERT) and hematopoietic stem cell therapy (HSCT). Both therapies work to reduce the accumulation glycosaminoglycans (heparan sulphate and dermatan sulphate).

What did the CEO say?

Commenting on the trial, Paradigm CEO Paul Rennie said:

The data collected from the Phase 2 trial will be vital to support Paradigm’s future regulatory filings and applications for the development of PPS as a potential adjunctive therapy to enzyme replacement therapy (ERT) treatments. Our MPS programs will treat subjects as adjunct to ERT as well as previously bone marrow transplanted patients who may or may not remain on ERT.

Paradigm is making significant progress in the clinical development of PPS in both of our two programs of osteoarthritis (Zilosul) and the rare disease of MPS.

It is important to note both the US FDA and EU EMA have confirmed MPS is an orphan indication and as such the commercial advantage of an orphan drug is the 7-year regulatory exclusivity awarded to orphan drugs.

About the Paradigm share price

The Paradigm share price has been up and down over the past 12 months, reaching as high as $4.50 and as low as $1.08.

The company has a market capitalisation of $702.3 million and trades an average volume of 1.1 million shares daily. This shows investors are active when it comes to buying and selling Paradigm shares.

More reading

• Xero (ASX:XRO) share price hits record high after delivering strong first half growth
• Is the Commonwealth Bank (ASX:CBA) share price in the buy zone?
• 2 ASX dividend shares growing their dividend every year
• Wesfarmers (ASX:WES) share price on watch after FY 2021 trading update
• Telstra (ASX:TLS) share price on watch after major update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price is charging higher following the release of its half year update.

In morning trade the cloud-based business and accounting platform provider’s shares are up almost 7% to a record high of $130.95.

How did Xero perform in the first half?

For the six months ended 30 September, Xero continued its positive form despite the challenging COVID-19 environment.

Management feels that this demonstrate the resilience of its global subscriber base and its proactive response supporting customers and partners.

During the half, the company’s operating revenue grew 21% over the prior corresponding period to NZ$409.8 million. This was a 19% increase in constant currency.

This led to Xero’s annualised monthly recurring revenue (AMRR) growing 15% to NZ$877.6 million.

A key driver of this growth was a 19% increase in total subscribers to 2.45 million. Management advised that all markets made positive progress and Australia became Xero’s first market to pass one million subscribers.

And while there was some volatility in churn during the half, overall reported MRR churn was consistent at 1.11%.

One key metric of interest for investors is the company’s total subscriber lifetime value (LTV). This increased 15% over the prior corresponding period to NZ$6.2 billion. It is also up 12.7% since the end of FY 2020.

What about earnings and free cash flow?

Operating leverage was on display for all to see in the first half of FY 2021.

Despite revenue increasing 21%, Xero’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by an even greater 86% to NZ$64.9 million.

Things were even better on the bottom line, with Xero’s net profit after tax coming in 26 times greater than the prior corresponding period at NZ$34.5 million.

Also growing strongly was the company’s free cash flow, which came in at NZ$54.3 million for the half. This is up from NZ$4.8 million a year earlier.

Management advised that its strong earnings and free cash flow growth reflects Xero’s disciplined financial management during a highly uncertain period. This approach contributed to a 10% reduction in sales and marketing costs when compared to the prior corresponding period.

And while uncertainty from COVID-19 is likely to remain, management expects Xero’s focus on long-term growth, combined with a return to more normal market conditions, to lead to a return to sales and marketing cost growth in the future.

Management commentary.

Xero’s CEO, Steve Vamos, commented: “This result demonstrates the value our customers attribute to their Xero subscription and the underlying strength of Xero’s business model. We continue to prioritise investment in customer growth and product development in line with the long term opportunity we see.”

“Subscriber growth was positive in all geographies, with stronger net subscriber additions in Australia and New Zealand with relatively less disruption in those markets from COVID-19. During a difficult period, it’s pleasing to report we grew to exceed one million subscribers in both Australia and in our International segment,” he added.

Outlook.

Management notes that Xero is a long-term oriented business with ambitions for high-growth.

It continues to operate with disciplined cost management and targeted allocation of capital. It feels this allows it to remain agile so it can continue to innovate, invest in new products and customer growth, and respond to opportunities and changes in the operating environment.

However, due to the continued uncertainty created by COVID-19, it believes it is speculative to provide further commentary on its expected FY 2021 performance at this time.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 surges again on Wednesday
• Why the Xero (ASX:XRO) share price jumped 13% to a record high today
• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• Why CBA, Straker, Woodside, & Xero shares are surging higher

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 has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price has been a positive performer this week.

Since the end of last week, the banking giant’s shares have charged 7% higher to $74.40.

Why is the Commonwealth Bank share price charging higher?

Investors have been buying Commonwealth Bank’s shares for a couple of reasons this week.

The first is of course the COVID-19 vaccine news which has put a rocket under the S&P/ASX 200 Index (ASX: XJO).

The prospect of the pandemic ending sooner than expected has sparked optimism that the economic impact may not be as bad as feared.

In addition to this, the release of a better than expected first quarter update and a sharp reduction in COVID-19 loan deferrals has given its shares a boost.

Is it too late to invest?

One leading broker that believes it is too late to invest is Goldman Sachs.

This morning its analysts reiterated their sell rating and cut the price target on Commonwealth Bank’s shares to $65.24.

Goldman Sachs believes its weak operational performance doesn’t justify the premium the bank’s shares trade at and sees better value elsewhere in the sector.

The broker explained: “Weak operational performance does not justify PER premium. While CBA’s balance sheet is strong, with a sector leading capital and provisioning position, CBA’s operational performance in 1Q21, particularly as it relates to costs, does not justify the 24% premium it is currently trading on versus peers (versus 15% 15-yr average). Coupled with our revised 12-month TP implying 6% downside, we remain Sell rated.”

Which bank should you buy?

As of last week, Goldman Sachs’ top pick was National Australia Bank Ltd (ASX: NAB). It had a conviction buy rating on the bank’s shares. However, its price target stands at $21.18, which is now lower than the current NAB share price of $21.82.

The broker also has a buy rating on Westpac Banking Corp (ASX: WBC) shares, with a $19.60 price target. This compares to its last close price of $18.73.

More reading

• ASX 200 surges again on Wednesday
• Commonwealth Bank (ASX:CBA) share price higher on Q1 and loan deferral update
• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• Why CBA, Straker, Woodside, & Xero shares are surging higher
• CBA (ASX:CBA) share price lifts on first quarter results

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Commonwealth Bank (ASX:CBA) share price in the buy zone? appeared first on Motley Fool Australia.

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The two ASX dividend shares in this article are growing their dividends every year.

The Reserve Bank of Australia (RBA) recently decided to cut the official interest rate to almost 0% with a reduction to 0.10%.

ASX shares pay out dividends from their profit each year and some are growing their dividend every year.

Here are two examples rated as buys by the Motley Fool Dividend Investor service:

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT). That means it’s an owner of commercial farmland. It leases out that farmland to many large, quality tenants.

Some of those tenants include: JBS, Select Harvests Limited (ASX: SHV), Olam, Australian Agricultural Company Ltd (ASX: AAC), Queensland Cotton, Treasury Wine Estates Ltd (ASX: TWE) and Stone Axe.

The farms that Rural Funds owns are diversified – they are spread across different states and climates. They’re also diversified by farm type, it has almonds, cattle, macadamias, vineyards and cropping (cotton and sugar).

All of the rental contracts have rental growth built into them. The contracts mostly have a fixed 2.5% rental increase (with market reviews) or are linked to CPI inflation. This is a core factor of Rural Funds’ goal of growing the distribution yield by 4% per annum for investors. It has increased its distribution each year for the past several years.

Rural Funds has a portfolio weighted average lease expiry (WALE) of 10.9 years, which means the tenants are there for the long-term.

The ASX dividend share continues to invest in capital expenditure which aims to increase rental income in the future from those farms. In FY21 it’s planning to spend $5.7 million on water delivery infrastructure for almonds. For ‘productivity developments and infrastructure’ it’s planning to spend $10.8 million on cattle farms and $10 million on cropping farms. There is also another $1.1 million of capex planned for its vineyards and macadamias.

Based on a forecast FY21 distribution of 11.28 cents per unit, the Rural Funds share price offers a yield of 4.5%.

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

Soul Patts is an investment conglomerate that owns stakes in a variety of listed and unlisted businesses.

It has large positions in companies like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Tuas Ltd (ASX: TUA) and Clover Corporation Limited (ASX: CLV).  

The ASX dividend share also has positions in unlisted businesses and industries like resources, agriculture, financial services, swimming schools and a company called Ampcontrol.

Soul Patts has increased its dividend every year since 2000. That’s the longest record on the ASX.

It has actually paid a dividend every year since it listed in Australia in 1903.

Soul Patts funds its dividend from the investment income it receives from its investments (the dividends, distributions and interest) and then it pays its operating expenses. What remains is the net operating cashflow from its investments – this profit measure is what Soul Patts pays its dividend from. In FY20 its net cash from investments grew 48.8%.

The ASX dividend share paid out 56.93% of its net cashflows as a dividend in FY20, meaning the remaining 43% can be re-invested into other investment opportunities.

In FY20 the ASX dividend share grew its annual dividend payout by 3.4% to 60 cents. Over the past 20 years it has grown its ordinary dividend at a compound annual growth rate of 9.2% per annum.

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

More reading

• Brickworks (ASX:BKW) hasn’t cut its dividend for over 40 years
• 2 ASX dividend shares analysts rate as a ‘buy’
• These ASX dividend shares offer 4.5%+ dividend yields
• Why Soul Patts (ASX:SOL) is a strong ASX dividend share
• Is the Rural Funds (ASX:RFF) share price a buy for the dividend yield?

Tristan Harrison owns shares of RURALFUNDS STAPLED and 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, RURALFUNDS STAPLED, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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All eyes will be on the Wesfarmers Ltd (ASX: WES) share price this morning following the release of a trading update ahead of its virtual annual general meeting.

How is Wesfarmers performing in FY 2021?

This morning Wesfarmers’ Managing Director, Rob Scott revealed that the company has had a pleasing start to the year.

He commented: “Despite the challenging operating environment, the results across the Group’s retail businesses reflect their continued focus on meeting the changing needs of customers and delivering greater value, quality and convenience while providing safe and trusted environments for customers to shop.”

He notes that significant demand growth has continued in Bunnings, Officeworks, and Catch following the strong results reported in the second half of the 2020 financial year.

Trading update.

The key Bunnings business has arguably been the star of the show. At the end of October, the hardware giant’s year to date sales were up 25.2% over the prior corresponding period.

This was driven by a 30.9% increase in comparable store sales. This metric excludes stores impacted by government-mandated temporary closures in Melbourne and Auckland.

Management notes that its strong sales growth has continued in both consumer and commercial segments. Consumer sales remained particularly strong as customers spent more time undertaking projects around the home.

The Kmart business has been performing well despite wide-spread store closures. It delivered 3.7% sales growth year to date. Comparable store sales were up 9.4% over the period.

Things weren’t quite as positive for the Target business, which has recorded a 2.2% decline in sales year to date. This is despite comparable store sales rising 9.9% over the prior corresponding period.

Management advised that continued growth in home, active, and kids categories was partially offset by lower customer demand for apparel products. In addition to this, the government-mandated temporary closure of 38 Kmart stores and 32 Target stores in Melbourne impacted sales, partially offset by very strong online growth.

Excluding its Melbourne stores, both Kmart and Target delivered sales growth of 12.1% and 7.8%, respectively.

The Officeworks business has continued its strong form and reported year to date sales growth of 23.4%. Its sales growth has been supported by strong demand for technology and home office furniture products. However, its margins have continued to be impacted by changes in sales mix. This is particularly the case across Melbourne stores where higher margin categories, such as office supplies and print, copy & create, were disproportionately impacted.

The company’s online Catch business was a very strong performer. It reported a 114.4% increase in gross transaction value during the first four months of FY 2021.

Management advised that it experienced strong growth in both its in-stock and marketplace segments. Furthermore, at the end of October Catch had 2.7 million active customers, compared to 2.3 million active customers at the end of the 2020 financial year.

Catch is continuing to invest significantly in technology, marketing and enhancements to its customer offer to further accelerate growth in gross transaction value.

Finally, the company’s industrial divisions have made a pleasing start to the year. In Chemicals, Energy and Fertilisers, demand for ammonium nitrate remains resilient but, as always, management warned that the outlook for the division is dependent on commodity prices and seasonal conditions.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX dividend shares analysts rate as a ‘buy’
• ASX 200 Weekly Wrap: US election special
• What to expect from these ASX blue chip dividend shares in 2021
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Corporation Ltd (ASX: TLS) share price will be in focus today after the release of a major announcement by the telco giant.

What did Telstra announce?

This morning Telstra announced an important milestone in its T22 strategy with the proposed restructuring of the company to create three separate legal entities.

Telstra’s CEO, Andrew Penn, believes the restructure would enable the company to take advantage of potential monetisation opportunities for its infrastructure assets which could create additional value for shareholders.

He commented: “The proposed restructure is one of the most significant in Telstra’s history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company’s assets and create further optionality for the future.”

“The challenges and disruptions of the last 6-12 months have reinforced the increasing value of infrastructure assets globally; the importance of the digital economy, not only to business but to the whole of Australia and its economic recovery; and the dependence of the digital economy on telecommunications as its platform,” Mr Penn added.

What are the changes?

The proposed legal structure within Telstra is expected to be completed by December 2021 and would be:

InfraCo Fixed – it would own and operate Telstra’s passive or physical infrastructure assets: the ducts, fibre, data centres, subsea cables and exchanges that underpin Telstra’s fixed telecommunications network.

InfraCo Towers – it would own and operate Telstra’s passive or physical mobile tower assets, which Telstra will look to monetise over time given the strong demand and compelling valuations for this type of high-quality infrastructure.

ServeCo – it would continue to focus on creating innovative products and services, supporting customers and delivering the best possible customer experience. ServeCo would own the active parts of the network, including the radio access network and spectrum assets to ensure Telstra continues to maintain its industry leading mobile coverage and network superiority.

Trading update.

In addition to the above, Telstra provided an update on its performance in FY 2021 and its expectations for the full year and beyond.

Pleasingly, the company has reconfirmed the FY 2021 guidance provided to the market with its full year results in August.

Furthermore, with the NBN rollout effectively complete and being more than half way through its T22 strategy, the company’s chief executive believes it will return to underlying EBITDA growth by FY 2022. After which, it is aiming to grow its underlying EBITDA to the range of $7.5 billion to $8.5 billion in FY 2023.

Mr Penn commented: “While we do not provide financial guidance beyond the current financial year, our board and management team understands the importance of achieving EBITDA in this range and the actions required to deliver it.”

”If we are successful in getting into the bottom end of the $7.5 – $8.5 billion underlying EBITDA range by FY23, this would equate to an estimated ROIC of close to 8 percent. As a result, we have updated our ROIC target accordingly to be around 8 percent by FY23,” he added.

Mr Penn also revealed that 5G adoption has been strong this year and is expected to strengthen further by the end of the year.

He explained: “Our mobile business continues to perform strongly relative to our competition. Our clear lead in 5G means we have the opportunity to capitalise on a new multi-year cycle of growth and our transacting minimum monthly commitment has continued to grow in FY21. We already have more than 400K 5G devices on our network and we expect that to reach around 750K by the end of the calendar year. “

More reading

• ASX 200 Weekly Wrap: US election special
• What to expect from these ASX blue chip dividend shares in 2021
• 2 ASX dividend shares with yields over 8% today
• Government declares 2021 as ‘Year of 5G’
• Why the Novatti (ASX:NOV) share price jumped 10% on open today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Did you know that Brickworks Limited (ASX: BKW) hasn’t cut its dividend in more than four decades?

Many ASX shares cut (or at least deferred) their dividends in 2020 because of the global COVID-19 pandemic. Brickworks said it was proud to be one of the very few S&P/ASX 200 Index (ASX: XJO) companies that increased dividends during the pandemic. Brickworks also didn’t raise capital or receive government support payments during the COVID-19 period.

Lots of businesses also cut their dividends during the GFC, but Brickworks did not. 

Brickworks boasts of a long history of dividend growth. It has been 44 years since dividends were last decreased in 1976.

An overview of Brickworks

Brickworks has been a leading building products for many decades. It has a number of bricks brands including Austral Bricks, Bowral Bricks and Daniel Robertson. Brickworks also operates in other Australian building products categories including precast, paving, masonry and roofing.

It has also quickly become the market leader for bricks in the north east of the United States after making three acquisitions including Glen Gery.

There are two other segments to its business. The first is that it owns 50% of an industrial property trust along with Goodman Group (ASX: GMG). Brickworks sells excess land that it had previously used into the JV property trust so that the land can be used for building industrial properties.

Both Amazon and Coles Group Ltd (ASX: COL) will soon be tenants for the property trust which is building large distribution centres for those retail giants to use and rent. Following the completion of these two facilities, the gross assets held within the various JV trust assets across Western Sydney and Brisbane is expected by Brickworks to exceed $3 billion.

The final division is its investment holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. It owns around 40% of Soul Patts. Brickworks says that Soul Patts has a diversified portfolio of assets and has a proven investment approach that has delivered “outstanding” returns over the long-term. At the time of Brickworks reporting its FY20 result, Soul Patts had delivered annualised total returns of 12.7% per annum over the past 20 years, which represented outperformance of 5.2% per annum compared to the ASX All Ordinaries Accumulation Index.

Dividend record

As mentioned above, Brickworks has maintained or grown its dividend every year for over four decades.

Brickworks says that its dividend is funded entirely from the distributions from the property trust JV as well as the dividends from Soul Patts. The property trust keeps growing its net rental profit and Soul Patts keep increasing its dividend, which allows Brickworks to continue to grow its dividend. it doesn’t need any building products cashflow to pay its current dividend. 

The ASX dividend share increased its FY20 dividend by 3.5% to $0.59 per share. At the current Brickworks share price, that amounts to a grossed-up dividend yield of 4.3%.

The Motley Fool Dividend Investor service commented on Brickworks’ in its latest buy recommendation of the company: “This, along with the diversified nature of its assets, is one of the key reasons behind the company’s incredible decades-long dividend paying track record. In the current low interest rate environment, the size and reliability of its dividend should prove to be attractive for those investors looking for a reliable income stream.

“Brickworks offers a compelling dividend investment opportunity. Combining its strong market positions, a quality management team, shareholder base and a solid balance sheet”.

The Dividend Investor service still rates Brickworks as a buy.

More reading

• These ASX dividend shares smash term deposits
• ASX 200 surges again on Wednesday
• Latest ASX stocks to be hit by a broker downgrade
• The irresistible urge that costs retail investors 3% a year
• 2 ASX dividend shares analysts rate as a ‘buy’

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 and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article is about two technology exchange-traded funds (ETFs) that are generating big returns.

What is an ETF?

I’ve already linked to a lengthy article covering ETFs, but in summary it’s an investment vehicle that allows you to buy lots of businesses (or other assets) through a single investment, rather than needing to buy dozens or hundreds of businesses individually yourself.

Here are the tech funds

Betashares Nasdaq 100 ETF (ASX: NDQ)

BetaShares explains that the NASDAQ-100 comprises 100 of the largest non-financial companies listed on the NASDAQ market, and includes many companies that are at the forefront of the new economy.

Many people use one or more of the services of the ‘FAANG’ shares – Facebook, Apple, Amazon, Netflix and Google (Alphabet). Smartphones, googling something, watching some TV streamed over the internet, connecting with family on Facebook – all these are examples of something provided by a FAANG share.

The ETF gives exposure to some of the biggest businesses in the world including Apple, Microsoft, Amazon, Facebook, Alphabet, Tesla, Nvidia, Adobe, Netflix and PayPal.

Betashares Nasdaq 100 ETF has been one of the best-performing ETFs on the ASX over the past five years, returning an average of 19.8% per annum after fees. That return figure includes the annual management fee of 0.48% per annum.

However, this isn’t just a tech ETF, although almost half of it is invested in the ‘information technology’ sector. Another 19.1% is invested in the communication services sector, then 18.9% is invested in consumer discretionary, 6.7% in healthcare, 4.7% is invested in consumer staples and the rest is invested in industrials and utilities.

Whilst many of its biggest positions don’t pay dividends, the ETF usually pays two distributions each year. According to BetaShares, its 12-month trailing distribution amounts to a yield of 2.6%.

It’s still rated as a buy by the Motley Fool Pro service.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

According to BetaShares, this investment gives exposure to the 50 largest technology and online retail stocks in Asia (excluding Japan), including technology giants such as Alibaba, Tencent, Baidu and JD.com.

There are a couple of key reasons why BetaShares thinks investors may like this ETF.

Firstly, due to its younger, tech-savvy population, Asia is supposedly surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

The other reason is that, with this one trade, BetaShares says investors get diversified exposure to a high-growth sector that is under-represented in the Australian share market, and a complement to investors with US technology exposure.

Here are the ETF’s top 10 biggest holdings: Tencent, Meituan, Samsung Electronics, Taiwan Semiconductor Manufacturing, Alibaba, JD.com, Pinduoduo, Infosys, Netease and KE Holdings.

The ETF is newer than the NASDAQ one, but it’s showing bigger returns as of right now. Since inception in September 2018, the ETF’s net returns has been an average of 32% per annum. That return figure includes the annual management fee of 0.67% per annum.

The entire holdings may classified as ‘technology’, but BetaShares has broken it down into down sub-sectors. Around two thirds of the ETF is invested in internet and direct marketing retail, semiconductors and interactive media and services.

In terms of geographical diversification, around 55% of the ETF is allocated to Chinese businesses. A further 22.3% is invested in Taiwan, 16.3% is invested in South Korea and 6.1% is invested in India. The other 0.4% is invested in Hong Kong and other countries.

The Betashares Asia Technology Tigers ETF is still rated as a buy by the Motley Fool Extreme Opportunities service.

More reading

• Zip and Flight Centre were among the most traded shares on the ASX last week
• I would buy the BetaShares NASDAQ 100 ETF (ASX:NDQ) and these ETFs this month
• 2 ETFs to buy next week
• I plan to invest heavily in ASX shares next week
• These ASX growth shares could be long-term market beaters

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In the current low interest rate environment, income investors will be lucky to receive an interest rate of 1% from term deposits.

Fortunately, the Australian share market is home to plenty of shares that offer dividend yields which are notably better than this.

For example, the two ASX dividend shares listed below provide yields of over 3.5% at present. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust (REIT) that invests in and manages commercial assets across Australia. The majority of its assets are leased to home improvement giant, Bunnings Warehouse.

While 2020 has been difficult for many property companies because of the pandemic, BWP has come out of the crisis largely unscathed. This is because the Bunnings business has been a very strong performer this year and flourished during the pandemic. So much so, BWP Trust recognised a $93.6 million increase in the gains in fair value of its investment properties in FY 2020.

This allowed BWP to increase its full year distribution to 18.29 cents per unit. Based on the current BWP share price, this represents a 4.3% yield.

Coles Group Ltd (ASX: COL)

This supermarket giant has been a very positive performer in 2020 thanks to its defensive qualities and favourable changes in consumer behaviour during the pandemic. In FY 2020 the company delivered a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. The good news is that this strong form has continued in FY 2021, with Coles recently reporting strong first quarter sales growth.

One broker that believes this has put Coles in a position to increase its dividend again this year is Goldman Sachs. In response to its first quarter update, the broker has increased its earnings and dividend forecasts for the year. It now expects the company to pay a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this equates to a 3.6% dividend yield.

More reading

• 2 ASX dividend shares analysts rate as a ‘buy’
• 3 compelling ASX shares rated as buys by brokers
• Why Coles, Incitec Pivot, Kogan, & Northern Star shares are crashing lower
• 2 ASX dividend shares with above-average yields
• Why big brokers are bullish about the Woolworths (ASX: WOW) share price 

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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