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There are some ASX dividend shares that have grown their dividends every year in a row for more than a decade.

It’s rare to find businesses in Australia that have increased the dividend consecutively going back that far.

Here are two of those few examples:

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

This business is commonly called ‘Soul Patts ‘ – the full name is a bit of a mouthful.

It’s an investment house that has been listed since 1903. It has actually paid a dividend every year since listing – meaning shareholders have received something every year for over a century.

But that’s not the record that is being referred to. Soul Patts has increased its dividend every year since 2000. That’s the longest dividend growth streak from a share on the ASX. Over the last 20 years Soul Patts’ dividend annual compound growth rate has been 9.2% per annum.

Paying a stable and growing dividend is one of the main goals of Soul Patts’ management. The company has stated it has the profit reserve and franking credit balance to keep paying dividends. 

Its dividends are paid out of the net cash flow from its investments. That net operating cash flow, after paying for expenses, rose by 48.8% in FY20 to $252.3 million. The main reason for the big increase was a significant catch-up special dividend from its biggest investment, the telco TPG Telecom Ltd (ASX: TPG). That increase was despite dividend cuts from a number of other of its investments.

Some of the other major sources of investment income to fund Soul Patts’ dividend are ASX shares like Brickworks Limited (ASX: BKW), Milton Corporation Limited (ASX: MLT) and Bki Investment Co Ltd (ASX: BKI).

Soul Patts is also invested in smaller businesses which it hopes will become much larger businesses like Palla Pharma Ltd (ASX: PAL), Clover Corporation Limited (ASX: CLV) and Tuas Ltd (ASX: TUA).

The investment house also has a portfolio of unlisted businesses that it owns outright, or has a large substantial position in. Some of those private investments are: swimming schools, resources, Ampcontrol, financial services and agriculture.

At the current Soul Patts share price it has a trailing grossed-up dividend yield of 3.4%.

APA Group (ASX: APA)

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 energy infrastructure ASX share generated growth in FY20 despite COVID-19 impacts. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 5.1%, operating cashflow up 8.3% and net profit after tax (NPAT) up 10.1%.

APA says that it pays its distributions from its operating cashflow, which is rising over time as new projects come online.

The business increased its total FY20 distribution by 6.4% to 50 cents. It has increased its distribution every year for a decade and a half. That is one of the longest ASX share dividend records around.

In FY21, APA is expecting EBITDA to be between $1.625 billion to $1.665 billion – this would be slightly down or the same compared to FY20. It also said that the total FY21 distribution is expected to be substantially the same as the FY20 distribution.

Using the trailing distribution, APA Group has a distribution yield of 4.5%.

More reading

• 3 ASX blue chip shares to buy for dividends
• 3 ASX 200 shares that every investor should own
• This market dip is the perfect time to buy these 2 forever shares
• Why market crashes are useful for buying ASX dividend shares
• 2 Warren Buffett ASX dividend shares to buy in November

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. 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 Synlait Milk Ltd (ASX: SM1) share price is trading lower today following the release of a manufacturing supply agreement.

At the time of writing, shares in the dairy processing company are down 2.44% to $4.80.

Let’s take a closer look and see what new deal Synlait signed.

What does Synlait do?

Synlait is a dairy processing company based in Canterbury, New Zealand. The company manufactures and sells ingredients and nutritional milk powders for infants, as well as specialised products for adults.

Synlait works with more than 200 milk suppliers that are located no further than 80km away from the manufacturing plant. This ensures consistent fresh milk that can cater to ongoing demand. Every hour, more than 9 tonnes of infant milk can be processed at its state-of-the-art facilities, which are said to be the largest in the southern hemisphere.

New agreement

According to the release, Synlait signed a manufacturing supply agreement with an established, global category leader. The company did not specify which strategic partner it took on board due to confidentiality terms.

Under the agreement, Synlait will manufacture, blend, and package nutrition products which include plant-based products. This will allow utilisation of its manufacturing chain to deliver consumer products to the market.

Synlait’s Pokeno and Auckland’s capacity are expected to be customised for processing and packaging. Capital expenditure is estimated to be around $70 million, which will be spread over two years. Commercial production is currently slated to begin in mid-2022.

The agreement will have a positive impact on earnings in FY23.

What did the CEO say?

Commenting on the new deal, Synlait CEO Leon Clement said:

This is the start of a valuable, enduring, strategic partnership that gives us broader market and category exposure in Asia Pacific.

Asian markets are experiencing strong sector growth as consumers seek nutritional products that support better health. Synlait is excited to play a role in this journey. This is a significant step forward for us as we genuinely diversify our customer, category and geographic reach.

Synlait share price summary

The dairy processor’s shares have been on a steady decline from April, falling from $7.25 to $4.83. This reflects a 33% loss. Earlier, the Synlait share price dipped to a multi-year low of $4.33 in March due to the impact of COVID-19, and is only slightly up since then.

The company has a market capitalisation of $883.5 million and a price-to-earnings ratio (P/E) of 17.

More reading

• Why the Stockland (ASX:SGP) share price is up more than 13% this week
• Top brokers name 3 ASX shares to buy today
• Why the Synertec (ASX:SOP) share price is shooting 110% higher
• How will the US election affect ASX shares?
• Ansell (ASX:ANN) share price climbs after upbeat AGM 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 Stockland Corporation Ltd (ASX: SGP) share price is a on a tear, up 3.1% in intraday trading and up 13.1% so far this week. A smashing start to November. And one that far outpaces the performance of the S&P/ASX 200 Index (ASX: XJO), up 1.0% today and 3.1% this week.

Following on this week’s gains, the Stockland share price is now only down 6.9% for the year, compared to an 8.6% loss on the ASX 200.

That’s particularly impressive, as Stockland shares fell much further during the COVID-19 panic selling earlier this year, down 61% year to date on 23 March. Shares are now up 141% since the March lows.

What does Stockland do?

Stockland develops, owns and manages retail, logistics, office and residential properties.

Stockland’s residential footprint is by far its largest. The company focuses on master-planned communities and medium density housing in growth areas across Australia. Its portfolio consists of 51 communities, with 74,000 lots remaining. Stockland estimates the end value is worth approximately $19.8 billion.

The Stockland share price began trading on the ASX in 2005.

Why is the Stockland share price surging this week?

The Stockland share price has been trending steadily higher since the 23 March trough. But this week’s 13% gains have been particularly strong.

In the absence of any new market news, the investor enthusiasm is likely tied to the Reserve Bank of Australia’s (RBA) decision to cut interest rates to a new historic low of 0.10% while launching a $100 billion new quantitative easing (QE) program.

Lower interest rates and more QE should help support the economy, supporting Stockland’s retail operations and potentially really strengthening its residential business.

As SQM Research’s Louis Christopher points out, this is a big tailwind for the Aussie housing market. Though one that could come back to bite us in the mid to longer-term (quoted by the AFR):

What the RBA’s intention is, is that they would like to see a recovering housing market and I think they are going to get it… Yes, it does risk creating too much fuel for the housing market.

We are at a significant risk of a new housing bubble. The economy is in recession, or coming out of one. There is going to be a cost here. Eventually we are going to see unaffordable housing.

I’ll leave the speculation of a pending housing bubble to SQM Research. But in the here and now, the Stockland share price looks to be riding the refueled housing market rapidly higher.

More reading

• Rising jobs and house loans place these ASX shares in focus
• ASX 200 has explosive start to trading ahead of RBA decision
• The Stockland (ASX:SGP) share price is down slightly today. Here’s why.
• 1 ASX share to buy for the WA housing boom
• Look through short-term unpredictability for long-term ASX share price gains

Motley Fool contributor Bernd Struben 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

CSL Limited (ASX: CSL)

According to a note out of UBS, its analysts have retained their buy rating and $346.00 price target on this biotech company’s shares. The broker has been looking into its Kcentra product and notes that its use has been growing strongly. It believes this will continue, which would be a big positive due to its low costs and meaningful contribution to CSL’s overall earnings. The CSL share price is trading at $302.70 this afternoon.

Nanosonics Ltd (ASX: NAN)

Analysts at Morgans have retained their add rating and $6.86 price target on this infection control specialist’s shares following the release of a trading update. Morgans notes that its performance is starting to pick up again with solid growth in consumables and its installed base so far in FY 2021. The Nanosonics share price is changing hands for $5.56 on Thursday.

Pushpay Holdings Ltd (ASX: PPH)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating but cut the price target on this donation platform provider’s shares to NZ$9.20 (A$8.60). This follows the release of Pushpay’s half year results on Thursday. Credit Suisse was pleased with the result and notes that the company is benefiting greatly from pandemic’s impact on the church sector. It also notes that the company has upgraded its guidance for the full year. Looking further ahead, the broker likes Pushpay due to its large market opportunity which it can grow into over the medium term. The Pushpay share price is currently fetching $7.60.

More reading

• Why the Pushpay (ASX:PPH) share price could be a growth opportunity
• Why these 4 ASX tech shares surged today
• ASX 200 ends mixed on Wednesday
• The Nanosonics (ASX:NAN) share price is surging higher
• Pushpay (ASX:PPH) share price on watch after dazzling first half profit growth

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 CSL Ltd., Nanosonics Limited, and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nanosonics Limited and PUSHPAY FPO NZX. 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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Formerly known as SML Corporation Ltd, Synertec Corporation Ltd‘s (ASX: SOP) shares are storming higher today as the company announced an update of its pilot program in China. At the time of writing, the Synertec share price is trading more than 110% higher at 8 cents.

What Synertec does

Synertec is a services company that provides mission critical engineering products and solutions to complex, high-risk and highly regulated industries. To this end, the company targets industries with high barriers to entry such as pharmaceuticals, oil and gas, critical infrastructure and defence.

The company has been listed on the ASX since 2013 and has a market capitalisation of about $20 million. Its services are provided across Australia and overseas through offices in Melbourne, Perth and Sydney.

So what?

Today, Synertec announced it has successfully completed its pilot program, however, international patent applications are still progressing.

Synertec has been working on the project in conjunction with its partner, Sichuan Greentech Environmental Co, a Chinese company. The companies are planning to globally commercialise Greentech’s novel, environmentally-friendly and composite dry powder (CDP) technology for the treatment of hydrocarbon drilling mud.

What happened?

The Synertec share price has been sent flying today as Greentech successfully completed its commercial scale program with one of two major Chinese, state-owned enterprises in oil and gas production. The positive results have reaffirmed the earlier modelled outcomes of CDP. Following the announcement,  Greentech plans to invoice the customer for $0.9 million.

Promisingly for Greentech, and as a result Synertec, it expects both of these customers to enter into exclusive strategic alliance agreements for the provision of Greentech’s CDP technology. This includes the supply of chemicals and processing of drilling mud using its machinery.

Furthermore, as a natural development in the relationship with Greentech, Synertec has appointed its own independent representative on the ground in Chengdu, China. This comes as Synertec announced a loan facility to Greentech as recently as July. These funds have been immediately applied in Greentech’s operations.

What now for the Synertec share price?

With the good news, Synertec has wasted no time in applying for international patent protection. To this tune, Synertec had advised it is committed to taking Greentech’s technology under its own name. It further reported that this indicates Greentech’s faith in the transferability and global scalability of this unique intellectual property.

Synertec Managing Director, Mr. Michael Carroll, was excited as he commented:

The trial results of the CDP pilot programs to date indicate that it is a potentially revolutionary and globally applicable solution to the significant environmental challenges presented by toxic drilling mud.

More reading

• How will the US election affect ASX shares?
• Ansell (ASX:ANN) share price climbs after upbeat AGM update
• Baby Bunting (ASX:BBN) share price stays flat on update
• Why share markets are shrugging off this uncertainty, and what to expect next
• The IOUpay (ASX:IOU) share price is in a trading halt today

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. 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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Well, the United States election happened.

Predictions of a comfortable Democratic victory for former Vice President Joe Biden were dashed yesterday. As was the credibility of the polling industry, which, once again, stuffed up royally (to put it frankly) in predicting an easy Biden win. The world remains on edge as final counting finishes up today or maybe over the next week or so. On the current numbers, Joe Biden looks to be in a much better position than Republican President, Donald Trump. But (big but), we won’t have a definitive result for a while. Donald Trump is also flagging multiple legal challenges to the results.

Earlier in the week, I wrote about possible outcomes for the US election. I also detailed the best and worst-case scenarios for the ASX and global markets. This was arguably one of the worst. According to reporting in the Australian Financial Review (AFR), we’ve just witnessed a bitterly close contest likely to leave America hopelessly divided for the next 4 years, regardless of who ends up the eventual victor.

The ‘blue wave’ Democrats were hoping for just didn’t materialise. On the current numbers, even if Joe Biden does end up being declared the 46th president of the United States, it looks as though he will have to contend with a Republican majority in the US Senate. That’s despite the fact that his own party looks to have kept its majority in the House of Representatives.

How will the election affect ASX shares?

According to separate reporting in the Sydney Morning Herald (SMH), investors are actually cheering this outcome, as it marks the return of divided government and congressional gridlock.

Although this might not sound conducive to a higher sharemarket, the SMH points out that this situation has “made investors optimistic that major policy changes would be difficult to enact”. That includes changes to President Trump’s signature tax reforms. These saw both corporate and personal income taxes slashed across the board, which Joe Biden had been promising to repeal a large chunk of.

However, the reporting also notes that demand for ‘safe haven’ assets like government bonds have spiked amid the uncertainty. Gold and silver (other ‘safe’ assets) have also appreciated in price overnight. It also notes that “…still, investors said they favour a definitive, swift resolution of the presidential race that would clear the way for a deal on a stimulus package to revive the economy”.

If this doesn’t come to pass, who knows what will follow.

More reading

• Ansell (ASX:ANN) share price climbs after upbeat AGM update
• Baby Bunting (ASX:BBN) share price stays flat on update
• Why share markets are shrugging off this uncertainty, and what to expect next
• The IOUpay (ASX:IOU) share price is in a trading halt today
• Here’s why the Oncosil Medical (ASX:OSL) share price has jumped 10% today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Ansell Limited (ASX: ANN) share price has climbed by 1.35% today to $42.08 at the time of writing. This movement comes off the back of its online annual general meeting (AGM) which took place this morning, where the company reported some impressive metrics for FY20 as well as FY21. 

Ansell Limited has a 125-year history of doing business, and is involved in the development, manufacturing, and sale of gloves and protective personal equipment in the industrial and medical end markets. Ansell operates in two main business segments: industrial and healthcare.

Major highlights from today’s AGM

Ansell reported a number of strong metrics today, including:

• a 7.6% increase in sales in FY20 to $1.61 billion.
• Its healthcare unit delivered 13.4% growth in sales in FY20, while its industrial unit delivered a 1.3% increase despite softening economy
• FY20 earnings before interest and tax (EBIT) grew by 39.7% to $219.7 million, which was supported by the sales growth, internal transformational initiatives, and net favourable raw material costs
• Earnings per share (EPS) increased by 23.6% on a constant currency basis.

The company also reported its costs have increased due to temporary plant shutdowns, other COVID-19 related costs, and adverse foreign exchange movements. Ansell attributes its net debt increase largely to changes in the new lease accounting standard.

Additionally, the company confirmed its dividend will be 50 cents per share, which represents a 7% increase.

What else was discussed

The company said that the COVID-19-associated increase in demand for its products started in China in February. This then expanded to the emerging markets customers in March, and was shortly followed by demand from North and Latin America. 

It also mentioned that the emerging markets revenue mainly from China and India was $338 million, or around 21% of total sales.

Guidance for FY21

The company also released guidance for FY21.

It says that Ansell’s strong portfolio of brands is well positioned to respond and adapt to impacts from COVID-19, which it expects to remain through all of FY21 and potentially into FY22.

Performance in the first four months of FY21 has been strong for the company, despite the continued uncertainties arising from COVID-19. Ansell is now expecting FY21 EPS to be in the range of $1.35 to $1.45 cents, which is up from previous guidance of $1.26 to $1.38.

Commenting on FY21 priorities, the company stated:

One of Ansell’s priorities is to ensure that it maintains its healthy balance sheet, and has sufficient capital to deploy for capital expenditure and dividends. Therefore, we paused buying back shares with the onset of COVID-19. However, we will keep the buy-back program open to maintain flexibility for our capital management strategies and we will continue to look to buy back shares opportunistically.

How has the Ansell share price fared in 2020?

The Ansell share price has had a stellar year so far, rising by around 45%. At today’s share price of $42.08, it has a market capitalisation of $5.4 billion.

More reading

• Leading brokers reiterate buy rating on this ASX healthcare share
• 6 major events for ASX shares this week
• Here’s why the Ansell (ASX:ANN) share price hit a record high today

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. 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 Baby Bunting Group Ltd (ASX: BBN) share price is trading flat today following the release of an operational update.

At the time of writing, shares in the baby goods retailer are slightly higher at $4.43, up 0.23%. In comparison, the All Ordinaries Index (ASX: XAO) climbed up 1.1% to 6,336 points.

What happened?

Baby Bunting said it was working closely with the Federal Department of Agriculture, Water and the Environment (DAWE) after a problem with a recent overseas shipment affected the goods being received.

The company advised insects had been found in a shipping container holding 320 units of Peg Perego Prima Follow Me highchairs. The Khapra beetle was found inside the shipment, a common insect attracted to cardboard packaging.

In response, Baby Bunting’s Dandenong South Distribution Centre in Victoria has been closed temporarily for inspection and treatment. This has affected the distribution of stock being flowed onto retailers. Normal operations are expected to progressively resume early next week.

Baby Bunting said that while the product with the affected packaging had been delivered to retail stores, it remained in storerooms. Acting quickly on the discovery, the items have now been quarantined and inspection by DAWE officers is under way. Treatment of the impacted storerooms is also being undertaken. All retails store will continue to remain open, but there may be some minor disruption over the coming weeks.

Costs are expected to be incurred to Baby Bunting for the containment and treatment plans associated with the insect dilemma. Furthermore, the company is assessing its options to recover some of these expenses.

Baby Bunting will provide replacement products to customers who had purchased the Peg Perego Prima Follow Me highchairs. More than 260 units in total were sold in the 7-week period.

The company has not indicated the impact to its performance for the quarter.

Baby Bunting share price on the rise

Despite this recent incident, the Baby Bunting share price has risen in strength over the past 8 months. From reaching a multi-year low of $1.51, shares in the company have jumped almost 200%. Demand for the retailer’s products led its shares to an all-time high of $5.18 just last month.

Baby Bunting has a market capitalisation of $615.9 million and a price-to-earnings ratio (P/E) of 61.4.

More reading

• The Atomo (ASX:AT1) share price is up today. Here’s why.
• Why the Atomos (ASX:AMS) share price is up 8% today
• The Austal (ASX:ASB) share price has dipped despite positive news
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches
• Why the Fluence (ASX:FLC) share price is up 10% today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Uncertainty is the name of the game as the outcome of the US presidential election remains up in the air. And the world is unlikely to know who will walk away with the keys to the White House anytime soon.

With Joe Biden potentially edging towards victory, Donald Trump’s team has already filed lawsuits in 2 critical US states – Pennsylvania and Michigan – to contest the late vote counting. Trump also wants a recount in Wisconsin, which Biden narrowly won.

And speaking from the White House, Trump said, “Frankly we did win this election…. We will be going to the US Supreme Court. We want all voting to stop.”

Isn’t this the worst possible outcome for share prices?

A contested election was meant to be the worst possible outcome for global share prices. Yet all the major US and European indexes closed strongly in the green.

Tech shares led the charge higher. The tech-heavy NASDAQ 100 Index (NASDAQ: NDX) closed up 4.4%. It’s now down just 5.2% from its 2 September all-time highs.

It’s a similar story here in Australia, with the S&P/ASX 200 Index (INDEXASX: XJO) up 1.19% at the time of writing. It’s now up more than 3% since Friday’s closing bell.

As in overseas markets, ASX tech shares are handily outperforming.

The S&P ASX All Technology Index (ASX: XTX), which contains 50 of Australia’s leading and emerging technology companies, is up 2.0% at time of writing and 6.0% since the end of Friday’s trading.

Not surprisingly, then, the share price of BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) is also gaining strongly. The exchange-traded fund (ETF) aims to track the performance of the All Tech index. The ATEC share price is up 2.1% today, and 6.7% since Friday.

What’s going on with the markets, and what can we expect?

If the polls were to be believed – they’re not – then Joe Biden and the Democrats would have swept into the White House and ruled both houses of Congress in the so-called ‘blue wave’.

That would likely have meant an increase in capital gains taxes and a repeal of Trump’s corporate tax cuts, while the Democrat’s much larger stimulus package would likely get the green light.

Now it looks like the Republicans will hold onto the Senate while the presidential winner remains in doubt.

To get a better idea of why this is seeing shares rallying, and tech shares in particular, we turn to some of the market experts.

Alicia Levine is the chief strategist at BNY Mellon Investment Management. She noted (as quoted by Bloomberg):

Part of what is going on is tech is rallying strongly, which is pushing the market up, and the reason tech is rallying is because it sold off, it was uniquely exposed to higher yields, higher taxes. That created a viscous reversion trade into cyclicals with the expectation yields were moving up with the prospect of further stimulus.

Matt Maley, chief market strategist at Miller Tabak + Co agrees that investors in tech shares are breathing a sigh of relief on the tax front (quoted by Bloomberg):

People said back in March and April that tech is a safe play. This sentiment is now returning – big time. If a capital gains tax isn’t going to be increased, all those investors waiting to take chips off table in their tech positions are now saying, ‘You know what, I’ll hold on.’

Where to next for share prices?

With share markets already having posted big gains over the past days, has the train left the station?

Hardly, says LPL Financial’s Ryan Detrick (quoted by the Australian Financial Review):

We don’t know who will be the next president as of Wednesday morning, but we do know that stocks tend to do well the final two months of an election year, in particular November. Of course, 2020 isn’t like any other year, and we still could be a ways away from who the winner will be.

One of the big takeaways so far from Tuesday night is that the Senate likely will stay Republican, meaning we may have a divided Congress. The chances of higher taxes and more regulation likely took a hit under this scenario.

This could be a nice tailwind for stocks, as the S&P 500 historically has done quite well under a divided Congress, up more than 17 per cent on average. Additionally, in years with a divided Congress, stocks have been higher the past 10 times, with 2020 potentially being the 11th in a row.

Evercore ISI’s Dennis DeBusschere is also bullish on the closely contested outcome of the election, writing in a note to clients (from Bloomberg):

With the chances of a significant increase in tax rates and headwinds to cash return largely off the table, the S&P has about 13% upside from yesterday’s close. Either a narrow Biden victory or Trump’s re-election would push that slightly higher.

Whether or not DeBusschere and Detrick are proven correct, we may have to rethink the old adage that share markets hate nothing more than uncertainty.

If you’re still sceptical, just have a look at the Afterpay Ltd (ASX: APT) share price. Shares in the buy now, pay later giant are up 3.03% so far today, and more than 7% higher since Friday’s close.

At the current price of $103.80, the Afterpay share price is once again at a new record high.

More reading

• Has your online ASX trading account been hacked?
• PayPal’s buy now, pay later service is surging
• ASX 200 ends mixed on Wednesday
• With interest rates near zero these ASX income shares are in focus
• ASX copper miners brush off latest Chinese tariff threat

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Ioupay Ltd (ASX: IOU) share price is in a trading halt today. So why is this happening, especially with such a new entrant to the ASX boards?

What does IOUpay do?

IOUpay is one of the latest entrants into the increasingly-crowded payments space on the ASX. This sector was pioneered by the now-famous buy now, pay later (BNPL) company  Afterpay Ltd (ASX: APT) a few years ago. But Afterpay has since been joined by Zip Co Ltd (ASX: Z1P), Sezzle Inc (ASX: SZL), Openpay Group Ltd (ASX: OPY) and a couple of others in seeking the riches of this new payments space. Even some US giants like PayPal Holdings Inc (NASDAQ: PYPL) and American Express Co (NYSE: AXP) are getting in on the action as well.

So IOUpay only debuted on the ASX a few weeks ago (21 September to be exact) and caused quite a stir when it rocketed 44% on IPO day.

It’s a fintech company which provides digital commerce software solutions and services. The company’s technology enables institutional clients to extend their digital platforms to any mobile device and integrate mobile technology throughout their existing business. In addition, they can authenticate end-user customers and process financial transactions securely using any mobile device. According to IOUpay, it aims to be “one of the leading digital transaction processors in the booming cashless economies of Southeast Asia”.

Why the trading halt today?

The company hasn’t said too much about its halt, other than telling investors that it is “pending the consideration of a capital raising”. A capital raising is where a company seeks to raise money, either for expansion purposes or to get it out of a pickle (such as potential bankruptcy).

Companies’ usually raise capital by issuing new shares to the market. If a company’s share price is relatively high, it increases the level of funds a company can seek in a capital raising for each new share issued.

The current IOUpay share price remains a good 178% above its initial public offering (IPO) price and gives the company a market capitalisation of $71.87 million.

We will have to wait for now to see the specifics of the capital raising. 

More reading

• Why the IOUpay (ASX:IOU) share price jumped 14% this morning
• Douugh and Ioupay were among the most traded shares on the ASX last week
• Are speculators driving today’s 44% Ioupay (ASX:IOU) share price gains?

Sebastian Bowen owns shares of American Express. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and Sezzle Inc. 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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