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I think that Aussie investors would be smart to look at global ASX dividend share ideas.

Australia has a reputation for dividend-paying shares because of the higher payout ratios as well as the bonus of franking credits.

However, if you focus on businesses that are mainly based in Australia (and New Zealand) then you’re missing out on the rest of the world economy.

Here are three ASX dividend share ideas to get income diversification from global sources:

Pacific Current Group Ltd (ASX: PAC)

Pacific is a global boutique asset management business which takes stakes in asset managers and helps them grow.

It has a portfolio of 15 specialist boutiques in Australia, India, Luxembourg, the US, and the UK.

Pacific’s underlying funds under management (FUM) has been growing at a strong rate recently. In FY20, asset manager GQG grew its own FUM from US$25.1 billion to US$44.6 billion. Carlisle and Victory Park also grew by 31% and 19% respectively.

Excluding boutiques sold and acquired during the year, Pacific’s FUM grew by 52% to $93.3 billion.

I count Pacific as a great ASX dividend share because the underlying earnings growth is helping its dividend. FY20 underlying earnings per share (EPS) went up by 18% to $0.44, helping the annual dividend jump by 40% to $0.35 per share.

At the current Pacific Current Group share price it offers a trailing grossed-up dividend yield of 8%.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This is a listed investment company (LIC) operated by Paul Moore and his investment team at PM Capital. The purpose of a LIC is to invest in other shares, make investment gains and then the LIC can pay dividends from those investment profits.

PM Capital Global Opportunities Fund looks to invest in good businesses at a good price which are being valued differently to their long term intrinsic value and will return to their ‘correct’ value over time.

At the moment some the holdings in its portfolio include Cairn Homes, Bank of America, Visa, MGM China Holdings, KKR & Co, Siemens and Freeport-McMoRan.

Its portfolio is invested in businesses right around the world. At the end of September 2020, around 60% of the portfolio was invested in businesses listed in the US, 29% in Europe, 6% in Asia (excluding Japan) and 5% in the UK. Remember that the underlying earnings of those holdings are mostly global, not just from one country.

I think, at the current PM Capital Global Opportunities Fund share price, it’s a global ASX dividend share to consider because it offers a grossed-up dividend yield of 6.3%. It has increased its dividend each year since 2016. It’s also valued at a 16% discount to the pre-tax net tangible assets (NTA) at 9 October 2020.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which aims to invest in the best businesses in the world.

It targets companies that can consistently exploit competitive advantages and earn good returns on capital.

Looking at its holdings, some of the businesses to make it into Magellan Global Trust’s portfolio are: Alibaba, Alphabet, Atmos Energy, Eversource Energy, Microsoft, Tencent, Facebook, Facebook, Visa, Mastercard and Reckitt Benckiser.

The portfolio is a combination of both defensive and ‘growth’ businesses. It has worked well. After fees, the trust has delivered annual outperformance of an average of 1.35% per annum compared to the MSCI World Net Total Return Index (AUD) since inception in October 2017.

I think it’s a solid idea as an ASX dividend share because it aims for a distribution yield of 4%. That handily beats what you can get from the bank at the moment. The distribution should grow as Magellan Global Trust’s net asset value (NAV) increases over time.

There are also some other top dividend ideas on the ASX worth looking into.

More reading

• 2 little-known ASX dividend shares to buy for income
• Get paid huge amounts of cash to own these ASX dividend shares
• Why Magellan Global Trust (ASX:MGG) could be a retiree’s dream share
• 3 ASX growth shares I’d buy today for growth and income
• How to generate $1,000 a month in dividends

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and PM Capital Global Opportunities Fund Ltd. 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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Making a worthwhile passive income in retirement by investing just $100 per month may sound unlikely at first glance. After all, a substantial amount of capital is required from which to obtain even a modest income on a regular basis.

However, through regularly buying a diverse range of shares, you could build a surprisingly large nest egg. Over a long period, it could help to pay for your retirement and improve you overall financial prospects.

Making a passive income from cheap shares

The recent market crash may have dissuaded some investors from buying shares to make a passive income. However, the track record of the stock market suggests that buying cheap shares is a sound means of obtaining relatively high returns in the long run. The world economy has always recovered from recessions to return to growth. Similarly, depressed stock prices have offered buying opportunities for long-term investors ahead of their recovery.

As such, now could be the right time to start investing regularly in stocks. In many cases, high-quality businesses with competitive advantages over their peers and solid financial positions are currently trading significantly below their long-term average prices. This may provide investors with the chance to buy them at a price that is below their intrinsic values. In doing so, you could profit from their likely recovery and build a retirement nest egg that provides an income in older age.

Building a diverse portfolio of stocks

Of course, not all undervalued stocks will experience recoveries that allow you to make a passive income in retirement. Some companies will inevitably struggle to survive what could be a tough year for the world economy. Other companies may find it difficult to adapt to what seem to be rapidly-changing consumer tastes across many industries.

As such, it is important to diversify your portfolio across a range of stocks and sectors. This limits company-specific risk, which is a reliance on a small number of companies to produce your returns. A more diverse portfolio may also deliver higher long-term returns due to its exposure to a wider range of growth areas.

Regular investing

Buying cheap shares today may enhance your long-term returns and boost your passive income prospects. However, even the market rate of return could help you to enjoy financial freedom in older age.

For example, the stock market has delivered a high single-digit annual total return over recent decades. Assuming the same return on a $100 monthly investment would produce a portfolio valued at around $350,000 over a working life of 40 years. From that, an annual withdrawal of 4% would produce an income of $14,000.

Clearly, not every investor has 40 years left until they retire. However, the example serves to show that even obtaining the stock market average return over the long run can lead to a surprisingly large nest egg. Furthermore, by investing in a diverse range of cheap shares, you could beat the market and earn a higher passive income in retirement.

More reading

• 3 top global ASX dividend share ideas
• EML (ASX:EML) share price rockets up 8% on investor briefing
• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Why the Shaver Shop (ASX:SSG) share price is up 8% today
• Angry staff at ASX company take industrial action

Motley Fool contributor Peter Stephens 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 EML Payments Ltd (ASX: EML) share price has rocketed up 8.56% after releasing an investor briefing. The EML share price is trading at $3.55 at the time of writing. Formerly known for the high margin activity of pre-paid cards, EML has continued to build out its technology. Alongside the pre-paid card business, the company provides critical payments infrastructure to the fintech industry. 

What is moving the EML share price?

 The company has put together an informative briefing pack on performance, technology and future investments. As a provider of Fintech infrastructure, it benefits from the growth of many other companies in this space. Personally, I am not sure that the full impact of this is reflected in the EML share price.

For example, EML has leveraged its technology to provide a range of services across fintech sectors. Specifically, it provides marketplace lending solutions to Moneyme Ltd (ASX: MME) and  Laybuy Holdings Ltd (ASX: LBY). In addition, it provides technology for services from mortgage lending, to payments and billing, through to leveraging blockchain. 

One of the more interesting applications of the technology is in salary packaging. One company uses cards to distribute pre-tax funds in accordance with government regulations for spend on various merchant categories. 

The company reiterated its FY20 headline results, these included a rise in revenue by 25%, along with a rise on net profits after taxes and abnormals (NPATA) of 17%. It also revealed that it has signed 46 contracts in the past two quarters, and has an additional 331 contracts in the pipeline. 

One of the forces supporting the EML share price are the barriers to entry across many payment platforms. For instance, in physical cards it has clear technological leadership with both reloadable and non-reloadable cards. As well as virtual payment tools and mobile payments. Consequently, it has enjoyed a 65% compound annual growth rate in earnings before interest, taxes, depreciation and amortisation (EBITDA).

Foolish takeaway

The EML share price has risen by 22% in the past month and could be a great opportunity for investors to buy into a technology growth company with a long runway ahead of it.

It is successfully leveraging its technology for its own products and helping to power fintech companies across a spectrum of services. Consequently, it benefits not only from its own products, but from products across many fintechs.

The company has been able to continue its revenue growth during the pandemic. Furthermore, the company has laid out a technology roadmap with an internal investment of $10–$15 million over FY21 and FY22. 

More reading

• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• 2 top ASX 200 blue chip shares worth a spot in your portfolio
• Could this ASX growth share be in for a turnaround in 2021?
• Are these 3 ASX shares strong recovery opportunities?

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of EML Payments. The Motley Fool Australia has recommended EML Payments. 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 early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing, the benchmark index is down 0.2% to 6,183.4 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The Brickworks Limited (ASX: BKW) share price is down 3% to $19.24. This decline has been driven largely by its shares going ex-dividend this morning. Eligible shareholders can now look forward to being paid the building products and investment company’s fully franked 39 cents per share final dividend on 25 November.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has fallen 5% to $13.70. Investors have been selling this travel agent’s shares after analysts at Credit Suisse downgraded them to a neutral rating. It made the move after pushing back its travel bookings recovery by six months to reflect a recent surge in COVID-19 cases in the northern hemisphere. Though, the broker’s price target of $15.31 is still notably higher than where it trades today.

The Whitehaven Coal Ltd (ASX: WHC) share price remains under pressure and is down a further 2.5% to 96.5 cents. Concerns over reports that the Chinese government is banning state-owned energy companies from buying Australian coal has been weighing on Whitehaven and other coal miners this week.

The Zip Co Ltd (ASX: Z1P) share price is down 3.5% to $7.63. Investors have been selling the buy now pay later provider’s shares despite the release of a strong first quarter update this morning. Strong customer and transaction growth led to Zip reporting record quarterly transaction volume of $943.1 million, up 96% on the prior corresponding period. This led to the company reporting an 88% increase in quarterly revenue to a record of $71.7 million. Some investors may have been betting on even stronger growth.

More reading

• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Zip (ASX:Z1P) share price lower despite explosive Q1 growth
• 3 ASX tech shares that pay dividends
• Zip and Estrella Resources were among the most traded shares on the ASX last week
• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Flight Centre Travel Group 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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Shaver Shop Group Ltd (ASX: SSG) shares are climbing higher today. At the time of writing, the Shaver Shop share price is up 7.53% to $1.00. This came after the company released a business update about its performance during the September quarter of 2020.

What was in the announcement?

The company experienced a 19.8% growth in sales in the September quarter of 2020 compared to the September quarter of 2019. Unaudited sales were $49.1 million in the September quarter and were supported by 192% growth in online sales. Online sales represented 32.4% of total sales during the quarter.

According to Shaver Shop, its sales growth during the quarter was achieved despite the closure of approximately 20% of its stores for two months due to lockdowns in metro Melbourne. The announcement reported that higher sales were achieved due to strong growth in online sales and growth in regions outside Melbourne. Sales growth excluding Victoria was 31.2% in the September quarter.

The company stated that it had an unaudited net profit after tax (NPAT) of $4.9 million in the first quarter of FY2021, this was an increase of 185% compared to Q1 FY2020. Shaver Shop cited healthy gross profit margins and cost control in addition to strong sales growth as the reason behind its increased profit.

Shaver Shop CEO and Managing Director, Mr Cameron Fox, commented on the result stating, “Our customer service metrics remain at or near all-time highs, and we are well placed to continue benefitting from the accelerating trends toward DIY personal grooming and online shopping.”

The company did not provide guidance for its annual sales and earnings and did not comment on expected sales for the December quarter. The reasons it did not provide guidance included continuing uncertainty surrounding the coronavirus pandemic. 

About the Shaver Shop share price

Shaver Shop is a retailer that provides personal grooming and beauty products. The company operates in store and online. Shaver Shop has been listed on the ASX since 2016.

The Shaver Shop share price is up 355% since its 52-week low of 22 cents and has increased nearly 52% since the beginning of the year. The Shaver Shop share price is up 61.3% since this time last year.

More reading

• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Angry staff at ASX company take industrial action
• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Here’s why the IPH (ASX:IPH) share price is edging higher

Motley Fool contributor Chris Chitty 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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Insurance Australia Group Ltd (ASX: IAG) employees have voted to take protected industrial action to protest an “unacceptable” pay offer.

The Finance Sector Union (FSU) and the insurance provider started negotiations for a new enterprise agreement late last year, but the talks were paused in March when COVID-19 struck.

The union claims the two sides reached an “in-principle” enterprise agreement (EA) before the pause – and that a new proposal from the company is inferior to what was previously agreed.

The pre-COVID offer was 2% annual salary increases over 3 years, according to FSU. But IAG is now proposing 1% for the first 2 years then 1.5% for the 3rd year.

“Having reached agreement in principle, IAG has spent the last several months dragging its feet before telling staff they weren’t worth a decent pay rise and walking away from its previous offer,” said FSU national assistant secretary Nathan Rees.

“This is an appalling breach of faith by an employer which fails to understand that a company’s greatest asset is its staff, who have worked hard through difficult circumstances this year to keep IAG in business.”

IAG employees are also unhappy with the removal of clauses relating to “job security” and “working from home”.

Staff will now take their case to the Fair Work Commission to initiate protected industrial action.

It’s not easy running a business after a pandemic

An IAG spokesperson told The Motley Fool that the new EA struck the “right balance” between running its business and the needs of its staff.

“We’re not immune from the significant impacts of the pandemic – not only from what we’ve experienced this year, but into the future,” said the spokesperson.

“Importantly, we believe this agreement will see IAG better placed to be able to maintain high levels of employment as we manage through the recession.”

The Motley Fool understands the new proposal includes clauses on diversity and inclusion, and new leave entitlements such as a 13% contribution on the unpaid portion of parental leave, domestic violence leave, NAIDOC leave and gender affirmation leave.

Rees said that even though pay increases had been cut due to COVID-19, they were dependent on performance targets that had not also been amended.

“IAG staff believe those targets are unreasonable because they haven’t been uniformly adjusted even though economic circumstances have changed radically,” he said.

“Workers at IAG have been working hard through devastating bushfires, floods and now COVID-19 to maintain services to customers, only to be rewarded by a pay offer that falls short of what is reasonable.”

IAG shares are down 1.94% at the time of writing, trading at $4.80. The IAG share price started this year at $7.58.

More reading

• ASX 200 rises on mixed day, big gold merger
• ASX 200 down 0.2%: Northern Star & Saracen announce mega merger, IAG settles class action
• Why IAG, Mayne Pharma, Mesoblast, & Temple & Webster shares are tumbling lower
• The ASX stocks most leveraged to the Victorian economy re-start
• ASX 200 drops another 0.8%, Magellan (ASX:MFG) reveals a large investment

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. 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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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen just short. The benchmark index is currently down a fraction to 6,192.2 points.

Here’s what is happening on the market today:

Bank of Queensland impresses.

The Bank of Queensland Limited (ASX: BOQ) share price is storming higher today after impressing investors with its full year result this morning. For the 12 months ended 31 August, the regional bank posted cash earnings to $225 million. Although this was a 30% decline on the prior corresponding period, it was ahead of expectations. The analyst consensus estimate was for cash earnings of $204 million.

CSL guidance update.

The CSL Limited (ASX: CSL) share price is pushing higher on Wednesday following the release of its annual general meeting presentation. Within its presentation, the biotherapeutics giant provided an update on its guidance for FY 2021. It now expects revenue growth in the range of 6% to 10%, with net profit after tax of approximately $2.170 to $2.265 billion in constant currency. The latter implies growth of 3% to 8%, which compares to its previous guidance of 0% to 8% growth.

Afterpay AUSTRAC update.

The Afterpay Ltd (ASX: APT) share price hit a new record high this morning after providing a positive update on its Anti-Money Laundering and Counter-Terrorism Financing audit. According to the release, after considering the final audit report and Afterpay’s response to the findings, AUSTRAC has decided it will not be taking any further regulatory action.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the EML Payments Ltd (ASX: EML) share price with a 7% gain. This follows the release of an investor briefing this morning. The worst performer has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 5% decline. This morning Credit Suisse downgraded the travel company’s shares to a neutral rating with a $15.31 price target.

More reading

• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• CSL (ASX:CSL) share price pushes higher on FY 2021 guidance update
• Why the James Hardie (ASX:JHX) share price is edging higher today
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 

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. and EML Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments and Flight Centre Travel Group 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to maintain its winning streak. At the time of writing, the benchmark index is off its lows and down slightly to 6,192 points.

Four shares that have not let that hold them back are listed below. Here’s why they are storming higher:

The Afterpay Ltd (ASX: APT) share price is up over 2.5% to $96.99. Investors have been buying the payments company’s shares today following an update on its Anti-Money Laundering and Counter-Terrorism Financing audit. According to the release, AUSTRAC has considered the final audit report and Afterpay’s response to the findings and has decided it will not be taking any further regulatory action.

The Bank of Queensland Limited (ASX: BOQ) share price has stormed almost 4% higher to $6.65. The catalyst for this was the release of a stronger than expected full year result this morning. For the 12 months ended 31 August, the regional bank posted a 30% decline in cash earnings to $225 million. This compares favourably to the consensus estimate of $204 million.

The EML Payments Ltd (ASX: EML) share price has jumped 8.5% higher to $3.55 following the release of an investor update. Although the update contained no new information, management spoke positively about the payments company’s future and believes it is well-positioned for growth.

The Sonic Healthcare Limited (ASX: SHL) share price is up 3% to $35.76. Investors have been buying the healthcare company’s shares after the release of its first quarter update. For the three months ended 30 September, Sonic delivered a 29% increase in revenue to $2,144 million and a 71% lift in EBITDA to $580 million. This impressive growth was driven by very strong demand for COVID-19 testing services globally. However, management has warned not to expect this level of growth to persist over the remainder of FY 2021.

More reading

• Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 
• Bank of Queensland (ASX:BOQ) share price higher following FY 2020 results
• 3 ASX tech shares that pay dividends
• 2 unstoppable ASX shares to buy with $2,000

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 EML Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments and Sonic Healthcare 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 IPH Ltd (ASX: IPH) share price has this morning edged higher after publishing its annual report before market opening. At the time of writing, the IPH share price has increased 0.41% to $7.36. This came after the company reported a 42% jump in underlying revenues, and a 24% increase in underlying net profit after tax (NPAT). IPH focuses on patents and trademarks. In fact, it was the first IP (intellectual property) focused company listed on the ASX. 

Financial highlights

IPH has been undertaking a growth strategy underpinned by buying and integrating smaller firms. Moreover, during FY20, the company integrated its acquisition of Watermark into its Griffith Hack firm. In addition, it completed the integration of Xenith IP after an initially contentious acquisition. The mergers have enabled the company to reduce operating costs and offset lower client filings due to pandemic lockdowns. 

Across the company’s operations, the Asian IP business saw an increase, while the Australian and New Zealand businesses declined by 5%. Specifically, the Asian business saw a like-for-like revenue increase of 6% and like-for-like earnings before interest taxes, depreciation and amortisation (EBITDA) of 8%. Furthermore, EBITDA margin increased from 41.3% to 42.2%. I believe the growth in its Asian market share should bolster the IPH share price as a predictor of future performance. 

Highlights of IPH’s Asian sector performance included Singapore, where the company retains its leading patent market share position with 23.3%. Moreover, the company remains the patenting market leader in Australia with combined group patent market share of 36.5%, and has the number one position for patents and trademarks in New Zealand.

An interesting highlight for me personally was the continued growth of the company’s software-as-a-service (SaaS) platform called WiseTime. This product is designed to increase billable time for attorneys. As such, it provides a tech company aspect to boost the IPH share price further. 

Outlook for the IPH share price

Maintaining leading market positions and growing ancillary markets are IPH’s strategic priorities in FY21. This means taking some time to digest recent acquisitions, both in Australia and New Zealand. Nonetheless, the company remains on the look out for potential acquisition targets while focusing on its organic growth.  

At the time of writing, the IPH share price is up 3.66% over the past five days’ trading, and is currently paying a trailing 12-month dividend yield of 4%. 

Foolish takeaway

The IPH share price remains a good investment in my view. The company has been in a perpetual growth stage since listing on the ASX via acquisitions. In addition, it was able to deliver solid results despite the global pandemic. 

More reading

• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• CSL (ASX:CSL) share price pushes higher on FY 2021 guidance update
• Why the James Hardie (ASX:JHX) share price is edging higher today
• Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends IPH Ltd. The Motley Fool Australia has recommended IPH 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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ASX gambling shares have been strong outperformers this year. While the S&P/ASX 200 Index (ASX: XJO) has fallen 7.4% lower, the value of companies like Pointsbet Holdings Ltd (ASX: PBH) has rocketed higher.

Now, new data from the Federal Government’s Australian Institute of Family Studies (AIFS) has confirmed what’s driving top ASX gambling shares higher this year.

What does the latest research say?

It’s not surprising that demand for gambling has surged given recent financial results for ASX gambling shares. However, the latest research shows just how much of a shift has been happening in gambling behaviour in 2020.

The AIFS surveyed more than 2,000 Australians who gambled during June and July 2020 as well as interviewing exports across gambling research, regulation, policy and treatment.

Almost 1 in 3 survey participants signed up for a new online betting account during the coronavirus pandemic while 1 in 20 started gambling online.

Participants gambled more often during COVID-19 with the proportion of those gambling 4 or more times a week climbing from 23% to 32%.

Horse racing, sports betting, greyhound racing and lotto were the main gambling products used before and during COVID-19. Young men were the most likely to sign up for new accounts and increase frequency and size of gambling spend.

What do the findings mean for ASX gambling shares?

It’s clear that gambling demand has been surging which has boosted demand for ASX gambling shares. For instance, the Pointsbet share price has rocketed 160.8% higher since the start of the year.

It’s far from the only wagering group to see its value on the rise. The Betmakers Technology Group Ltd (ASX: BET) share price was smashed in the March bear market but is now up 217.9% higher in 2020.

Foolish takeaway

ASX gambling shares have been rocketing higher this year and the latest research from the AIFS confirms the strong demand trends pushing those valuations higher.

More reading

• Why the James Hardie (ASX:JHX) share price is edging higher today
• 5 things to watch on the ASX 200 on Wednesday
• Short-sellers are stepping up their attack on these ASX stocks
• ASX 200 jumps more than 1%, big ASX banks rise
• Top brokers are urging you to buy these ASX stocks today

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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