Tag: Motley Fool

Charter Hall Group (ASX: CHC) shares were among the biggest gainers in the S&P/ASX 200 Index (ASX: XJO) yesterday. In fact, Charter Hall’s real estate investment trusts (REITs) have all been performing strongly in the August earnings season.

So, why is it that Charter Hall is managing to surprise investors right now?

How the Charter Hall REITs have performed in August

The Charter Hall Group share price jumped 6.7% higher yesterday to close the day at $12.00 per share. That came as the Aussie real estate manager reported its full-year earnings headlined by a 33% increase in funds under management to $40.5 billion.

Operating earnings jumped 46.3% to $322.8 million with net profit climbing 47% higher and distributions up 6% to 35.7 cents per share.

It’s not just the group that reported strong earnings, but its underlying REITs on the market.

The Charter Hall Long WALE REIT (ASX: CLW) share price is up 6.3% in August. That came on the back of a strong earnings result bolstered by lengthy weighted average lease expiries (WALEs) and strong distributions.

Shares in the Charter Hall Social Infrastructure REIT (ASX: CQE) have also been on the move. This Charter Hall REIT is up 12.1% in 2 weeks after another good FY20 result.

The Social Infrastructure REIT increased its WALE by 28.3% to 12.7 years with gross asset values up 4.4% to $1.3 billion.

What’s causing the share price surges?

For one, it’s a fairly pessimistic market out there. I would say that many investors are bearish on the real estate sector as evidenced by heavy share price falls for the Aussie REITs.

However, Charter Hall REITs have thus far been able to deliver stable earnings and/or solid growth forecasts.

Asset values have held up despite the coronavirus pandemic, which is good for the Aussie REITs. It helps that Charter Hall doesn’t have significant exposure to under pressure industries like retail.

I think the long WALEs across Charter Hall’s portfolios are also a big benefit. By locking in revenue for the long-term, short-term fluctuations in the business cycle have less of an impact.

Strong anchor tenants and focus on high-growth areas like logistics and social infrastructure are also good for earnings.

Overall, I think there is a lot to like about the Charter Hall REITs, particularly given the big falls in 2020. We’re seeing some momentum build in August and that may continue into 2021.

Foolish takeaway

I think the fundamentals for Charter Hall REITs are solid right now. However, the big test will be how the portfolios hold up when the government stimulus safety net is removed in the coming months.

More reading

• Mayne Pharma share price on watch as earnings slump 27%
• 5 things to watch on the ASX 200 on Friday
• ASX 200 down 0.8%, IDP Education soars
• Charter Hall share price jumps 6% on FY20 results
• The latest ASX 200 stocks hit by broker downgrades

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Why these Charter Hall REITs are outperforming in FY20 appeared first on Motley Fool Australia.

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The Suncorp Group Ltd (ASX: SUN) share price will be in focus today after the release of the insurance and banking giant’s full year results for FY 2020.

How did Suncorp perform in FY 2020?

For the 12 months ended 30 June 2020, Suncorp delivered a group net profit after tax of $913 million. This was up $738 million or 421.7% on the prior corresponding period.

However, this includes the profit after tax on the sale of Capital S.M.A.R.T and ACM Parts to AMA Group Limited (ASX: AMA) of $285 million and a $89 million non-cash impairment charge relating to the core banking platform.

It is also worth noting that the prior corresponding period was impacted by a $910 million after tax non-cash loss on the sale of the Australian Life business.

The company’s cash earnings came in at $749 million, down 32.8% on the prior corresponding period. This was the result of lower prior year reserve releases, higher reinsurance costs, and the impact of the low yield environment in the general insurance businesses.

Also weighing on its cash profits were significantly higher credit provisioning in the banking business and higher operating expenses.

How did its segments perform?

It was a difficult year for much of the Suncorp business. Both its Australian Insurance and its Banking & Wealth businesses posted heavy declines in profits.

They recorded profit declines of 33.9% to $384 million and a 33.5% to $242 million, respectively, in FY 2020. Positively, its New Zealand business performed better and delivered flat profits of $245 million.

COVID-19 impacts.

Management advised that COVID-19 had a $140 million pre-tax negative impact on the company’s FY 2020 result.

The pandemic had a positive $20 million impact on its Australian Insurance business thanks to lower motor claims frequency due to mobility restrictions. However, this was partially offset by lower new business volumes and customer relief packages.

The Banking and Wealth business was negatively impacted by $160 million. This was the result of COVID-19 impairment losses driven by a significant increase in its collective provision.

Finally, the pandemic had a neutral impact on the New Zealand business. The benefits of lower motor claims were offset by provisions for premium relief and hardship funds.

Dividend.

Unlike a few of its banking peers, Suncorp will be paying a final dividend in FY 2020.

The Suncorp board has determined a fully franked final dividend of 10 cents per share, bringing its total FY 2020 dividends to 36 cents per share. This reflects a payout ratio of 60.7% of cash earnings.

Management advised that the company remains well capitalised, with excess common equity tier 1 (CET1) of $823 million after adjusting for the final dividend.

Outlook.

The company warned that the operating environment remains highly uncertain as a result of the COVID-19 pandemic and the associated economic impacts. As a result, no guidance has been given for FY 2021.

In addition to this, management explained that while the board remains committed to its long-standing ordinary dividend payout ratio policy of 60-80% of cash earnings, this cannot be guaranteed. Future distributions will be informed by the outlook for the economy, the results of stress testing, and the operational needs of the business.

More reading

• 5 things to watch on the ASX 200 on Friday
• Leading brokers name 3 ASX shares to sell today

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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ASX reporting season is in full swing, with some of the most widely held shares like Wesfarmers Ltd (ASX: WES) and CSL Limited (ASX: CSL) releasing results this week. ASX shares can be highly volatile during the reporting season. This raises a few questions about buying and selling ASX shares during this time:

1. Why do some ASX shares like Monadelphous Group Limited (ASX: MND) go up when they report earnings? And why do other ASX shares like Qantas Airways Limited (ASX: QAN) go down or stay flat?
2. Should you buy or sell ASX shares before or after they report earnings?
3. Should you care more about the results or the share price movements when making investment decisions?

Reporting season or expectations season?

Some ASX investors like to call reporting season “expectations season”. That’s because share price movements are mostly dictated by the difference between analyst expectations and actual results. This makes sense as institutional investors have billions of dollars to invest into the market.

This reporting season has been quite different to those previous. Because of the uncertainty surrounding the coronavirus pandemic, a lot of ASX shares withdrew their guidance earlier in the year. However, once these ASX shares had some more clarity on their liquidity and forecasts, many provided trading updates ahead of reporting season. This has meant that investors had significant visibility on some ASX shares’ results, but next to none on others.

Qantas is a perfect example of an ASX share that met expectations. Qantas produced an underlying profit before tax of $124 million for FY20. This was a huge 91% drop on the prior year. Despite this, the Qantas share price traded flat to close at $3.76 on Thursday.

Should you buy ASX shares before or after reporting season?

Buying before reporting season can provide great short-term gains, but also comes with the risk of quick losses. This strategy can be implemented if you believe that the markets’ (and analysts’) expectations are wrong. In other words, if you think you know something that very few others do.

Unless a company has pre-guided or released a recent trading update, my preference is to wait and see. As a long term buy-and-hold investor, a pop in the share price is nice but is not fundamental to my investment thesis or the business’ future.

Stick to the fundamentals during reporting season

Reporting season is exciting! I must admit to checking the share market and my portfolio daily during the month. But it is important to keep a long-term focus when investing in ASX shares. Analysing both a company’s results, as well as its earnings, is fundamental to understanding the long-term prospects and relative value of a business. 

If you have a portfolio of shares, this can be hard to do. My fellow Motley Fool writers do a great job of summarising and reporting all of the important information you should be reviewing in a timely manner.

More reading

• Buy CSL and these quality ASX blue chip shares today
• ASX 200 down 0.8%, IDP Education soars
• Is the CSL share price a buy?
• Where to hunt for ASX dividend share income in 2020
• Why CSL, Iress, Santos, & Webjet shares are dropping lower

Lloyd Prout owns shares of Monadelphous Group Limited and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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Domino’s Pizza Enterprises Ltd (ASX: DMP) shares are on fire right now. The Domino’s share price rocketed 2.3% higher yesterday to a new record high of $86.16 per share.

This comes on the back of a bumper full-year earnings result and a strong growth outlook for the years ahead.

Many investors may be wary of buying ASX shares at record highs, especially in the current market. Here’s why I still like the Domino’s share price even at its lofty valuation.

What’s moving the Domino’s share price?

The big catalyst for the recent moves was a strong annual earnings release on Wednesday.

Domino’s reported a 5.8% increase in same-store sales growth with revenue of $5,624.9 million for the year ended 30 June 2020 (FY20).

Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 7.3% to $303 million while net profit after tax (NPAT) was up 3.3% to $145.8 million.

The Domino’s share price surged higher after reporting a 90.6% increase in free cash flow and a 3.3% dividend per share increase to 119.3 cents.

Those are some strong headline earnings figures particularly given the current challenges. Investors have responded by buying up big and sending the Domino’s share price surging to a new record high.

Why I think Domino’s is still a buy

There are a few things I like about the current outlook. The first one is a strong growth profile underpinned by core markets.

Sales across Australia and New Zealand, Japan and Europe were all up in FY20. Japan looks to be a particularly strong market with a further 75 stores added last year.

That’s good news for Domino’s shareholders who are seeking out future growth. There’s no doubt that needs to be realised with the Domino’s share price trading at a price-to-earnings (P/E) ratio of 55.8.

Investors will be naturally wary of buying in at an all-time high. Domino’s has previously been on a strong growth trajectory (back in 2014–2016) before falling off the wagon.

That means shareholders will understandably be cautiously optimistic about the current outlook. The coronavirus pandemic presents some challenges but Domino’s earnings have been resilient thus far.

That to me says the Domino’s share price could continue to climb based on careful expansion and strong cash flow.

Foolish takeaway

The Domino’s share price has positive momentum behind it but there is some substance there.

An increased dividend reflects management’s confidence in future cash flow and I think that’s good news for investors.

I think Domino’s is ticking the boxes for organic growth and strong earnings that make it worth a look.

More reading

• The latest ASX 200 stocks hit by broker downgrades
• ASX 200 rises 0.7%, CSL soars 6.4%
• Why Corp Travel, CSL, Domino’s, & WiseTech Global shares are storming higher
• The latest ASX stocks upgraded by brokers to “buy” today
• Domino’s share price on watch as free cash flow surges 90%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.

The post Why I’d buy the Domino’s share price at an all-time high appeared first on Motley Fool Australia.

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One of the easiest ways to invest in ASX shares is just to regularly invest. 

Market timing can be very difficult, and it may not make that much difference over the long-term. You don’t know when/if shares are going to drop back to a valuation that looks too good to miss. Even when there is a large fall – like March this year – it may be hard to commit to investing when things look shaky.

Unless you’re going to commit a lot of time to investing in shares, the best strategy could be to try to make the timing of your investing as automated as possible.

But there aren’t that many shares that you can easily commit to investing in every month because valuations can change so much. I like the idea of going for diversified options so that the risk from any particular business is lower.

Here are two ASX shares that could be worth buying with $1,000 every single month:

Share 1: Betashares Global Sustainability Leaders ETF (ASX: ETHI)

This is an exchange-traded fund (ETF) which aims to give investors exposure to businesses which rank well on ethical considerations.

There are a number of eligibility screens that companies have to pass to make it into this ETF’s holdings.

It removes companies which have any direct involvement in the fossil fuel industry as well as ones with material direct exposure and those with a particularly high use of fossil fuels. Businesses have to rank well when it comes to climate factors.

It also excludes a number of other activities that aren’t deemed to be responsible such as gambling companies, tobacco, armaments, alcohol, junk foods and pornography.

This ETF is invested in 200 global shares, they aren’t ASX shares. Its top 10 holdings are full of businesses that are quality names like: Apple, Nvidia, Mastercard, Home Depot, Visa, Adobe, Paypal, Tesla, Toyota and Netflix. Thankfully, a large portion of the ETF – more than a third – is invested in tech shares. I think that’s good because technology is where the most earnings growth is coming from these days.

The ASX share has performed strongly since inception in January 2017, with net returns per annum of 20.3%. These shares have recovered strongly since the COVID-19 crash. 

I think this ETF offers a lot of attractive attributes. I’d be willing to regularly buy this ETF because of how many shares it’s invested in. It offers good diversification, and its businesses are seemingly high quality.

Share 2: MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is a listed investment company (LIC). It’s operated by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. I think he has proven to be one of the best investors in Australia.

Over the past decade MFF Capital has delivered average total shareholder returns per annum of 17.8% per annum. Past performance isn’t a guarantee of future performance, but I think it shows the level of returns that MFF Capital can produce.

The ASX share has been invested in high-quality businesses like Visa and Mastercard for years. They continue to be great investments and represent around a third of the MFF Capital portfolio. It currently has a large cash position which can be used for protection against a near-term market downturn and more importantly the cash can be used to purchase good value shares.

MFF Capital regularly trades at a discount to its net tangible assets (NTA) per share. The fact that it always trades at a discount means that we can always buy it at a decent price. On 14 August 2020 it had an NTA per share of $2.82. That means it’s trading at a 7% discount to the last known NTA.

The ASX share’s board has recently announced it intends to keep increasing the dividend – which means shareholders will steadily get bigger payments over time.

Foolish takeaway

I really like both of these ASX shares. The ETF has a lot of great investments with good diversification. I think MFF Capital is one of the best LICs. I believe they’re both worth investing in regularly.

More reading

• The smartest 7 ASX shares to buy if you have $2,000
• My ASX share of the week
• Got $3,000? Buy these 3 top ASX shares right now
• 3 quality ETFs I’d buy for my portfolio
• Got $1,500? Here are 3 ASX shares I’d buy

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship 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.

The post 2 ASX shares I’d invest $1,000 into EVERY month appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) soared on Thursday, rising more than 7% as of 3:00 p.m. EDT.

The stock’s gain builds on recent momentum since the announcement of an upcoming five-for-one stock split. This momentum and an overall bullish day for growth stocks (like Tesla) are likely behind the stock’s rise on Thursday.

So what

Shares of Tesla have been on a tear recently. The stock is now up nearly 800% over the past 12 months and 24% in the past five trading days alone. Investors — and even some analysts — have cheered the company’s upcoming stock split, betting it will solicit more demand for the stock at a time when many retail investors are turning to individual stocks. This pre-stock split momentum seems to be continuing today.

Though the imminent split is probably not one of the main reasons Tesla stock is trading higher on Thursday, one headline that could have a slightly positive impact on price action today comes from the Asian news website Nikkei. The news website reports that Panasonic plans to invest more than $100 million next year in battery-production capacity at Tesla’s factory in Nevada. In addition to boosting production capacity at the factory, the company is upgrading the storage capacity of the batteries it is making by 5% in September, according to Nikkei.

Now what

Tesla’s business recovered quickly from factory shutdowns earlier this year. The company recently reinitiated its pre-COVID guidance for 500,000 vehicle deliveries this year, up from about 368,000 deliveries in 2019.

Tesla shares will begin trading on a five-for-one split-adjusted basis on Aug. 31.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment
• Sorry, cheap stocks aren’t the best stocks. Here’s why
• Here are the top 5 US shares ASX investors have been buying
• These soaring tech shares are making savvy investors rich
• Stock split watch: Could Amazon be next?

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Why Tesla Stock Soared Past $2,000 on Thursday appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The a2 Milk Company Ltd (ASX: A2M) share price will be on watch on Friday after a major announcement.

What did a2 Milk Company announce?

Earlier this week when a2 Milk Company released its full year results, it revealed that it finished the period with a cash balance of NZ$854.2 million.

It also advised that it would assess complementary merger and acquisition opportunities to drive further growth within its core markets.

Well, it certainly didn’t take long for the company to put these funds to work. This morning a2 Milk Company has announced that it is in discussions to make a major acquisition.

What is a2 Milk acquiring?

According to the release, the company is engaged in discussions with Mataura Valley Milk (MVM), a New Zealand dairy nutrition business, to explore options for it to participate in manufacturing at MVM’s facility in Southland, New Zealand.

As part of these discussions, the company has made a non-binding indicative offer to acquire a 75.1% interest in MVM for a total consideration of approximately NZ$270 million. This is based on an enterprise value of ~ NZ$385 million.

Management advised that MVM has agreed to provide the company with a period of exclusivity to conduct confirmatory due diligence and negotiate definitive transaction documentation.

This exclusivity arrangement is supported by MVM’s current majority shareholder, China Animal Husbandry Group (CAHG), which would retain a 24.9% interest in MVM alongside a2 Milk Company.

CAHG is a wholly owned subsidiary of China National Agriculture Development Group, which is also the parent company of a2 Milk Company’s strategic partner in China, China State Farm.

An acquisition aligned with its strategic objectives.

The company’s current Chief Executive Officer, Geoff Babidge, believes the potential acquisition would align with its strategic objectives.

He said: “As previously announced, due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability. The potential investment in Mataura Valley Milk’s recently commissioned facility, alongside China Animal Husbandry Group, aligns with this strategic objective as we look to complement and build upon our current strategic relationships with Synlait Milk and Fonterra Co-operative Group, which remain in place.”

“Our intention would be to invest further to establish blending and canning capacity at Mataura’s facility to support the establishment of a fully integrated manufacturing plant for infant nutrition,” he added.

Though, the company warned that discussions with MVM are ongoing and remain incomplete. In addition, any potential transaction is subject to further due diligence, negotiation of definitive agreements, and requisite regulatory and third-party approvals. If a deal is made, it isn’t likely to complete until the end of FY 2021.

More reading

• Where to invest $10,000 into ASX shares immediately
• Top brokers name 3 ASX shares to sell today
• I think the A2 Milk share price is a buy
• Why a2 Milk, Kogan, Nearmap, & Resolute shares are dropping lower today
• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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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Have you seen the interest rates on savings accounts these days? Many of the big banks are offering base rates of just 0.05% per annum.

This means that if you had $10,000 in one of these savings accounts, you would earn interest of just $50 a year.

I’m very confident that far greater returns can be found in the share market. As a result, I would be investing these funds into ASX shares if you have no immediate use for them.

But which ASX shares should you buy? Here are two I would snap up:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company would be a good option for these funds. The infant formula and fresh milk company was a strong performer once again in FY 2020. It delivered a 32.8% increase in revenue to NZ$1,730 million and a 34.1% lift in net profit after tax to NZ$385.8 million thanks largely to strong demand for its infant nutrition products in China.

The good news is the company still only has a 2% value share of the mother and baby store market in the country. I believe this gives it a significant runway for growth over the next decade. It is also worth noting that a2 Milk Company ended the period with a cash balance of NZ$854.2 million. I expect these funds to be deployed on earnings accretive acquisitions over the coming years that could accelerate its growth.

Pushpay Holdings Group Ltd (ASX: PPH)

Another place to consider investing $10,000 is Pushpay. It is an exciting technology company which provides churches and not-for-profits with donor management and engagement solutions. The company has been growing its sales at a rapid rate over the last few years. Pleasingly, this growth has been particularly strong during the pandemic, with the crisis accelerating the adoption of its solutions with churches eager to engage with their congregation and adapt to the rise of the cashless society.

In fact, after delivering stellar growth in FY 2020, management expects an even stronger performance in FY 2021. It recently revealed that it expects to double its operating earnings this year. The good news is that I don’t expect this growth to stop there. Pushpay still has a very long runway for growth over the next decade.

More reading

• a2 Milk share price on watch after announcing Mataura Valley Milk acquisition plans
• Top brokers name 3 ASX shares to sell today
• The smartest 7 ASX shares to buy if you have $2,000
• I think the A2 Milk share price is a buy
• Why a2 Milk, Kogan, Nearmap, & Resolute shares are dropping lower 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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index fell 0.7% to 6,120 points.

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

ASX 200 expected to push higher.

It looks set to be a positive end to the week for the benchmark ASX 200. According to the latest SPI futures, the benchmark index is poised to open the day 12 points or 0.20% higher this morning. This follows a strong night of trade on Wall Street which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.3%, and the Nasdaq storm 1.1% higher.

TPG half year results.

The TPG Telecom Ltd (ASX: TPG) share price will be on watch today when it hands in its half year results. According to a note out of Goldman Sachs, it is forecasting first half EBITDA to decline -7% to $897 million. This is largely due to weakness in the consumer business. The broker is also looking out for commentary on COVID-19 impacts and mobile pricing.

Oil prices tumble.

It could be a difficult day for energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oversupply concerns weighed on oil prices. According to Bloomberg, the WTI crude oil price is down 0.7% to US$42.62 a barrel and the Brent crude oil price is down 1% to US$44.90 a barrel.

Suncorp FY 2020 results.

The Suncorp Group Ltd (ASX: SUN) share price will be in focus today when the insurance and banking giant releases its full year results. According to CommSec, the market is expecting Suncorp to deliver a full year net profit after tax of $696.75 million. Investors may also want to keep an eye out for commentary around COVID-19 impacts on loans and insurance claims.

Gold price steadies.

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a mixed night of trade for the gold price. According to CNBC, the spot gold price is fetching US$1,955.20 an ounce. This is up slightly from 24 hours ago, but down sharply over the last few days.

More reading

• ASX 200 down 0.8%, IDP Education soars
• The latest ASX 200 stocks hit by broker downgrades
• Is now a good time to buy Fortescue shares?
• COVID-19 panic: SMSFs fled shares, then missed market rally
• Why CSL, Iress, Santos, & Webjet shares are dropping lower

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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If you’re keen to boost your income portfolio with some dividend shares, then I would suggest you look at the ones listed below.

I believe both companies are well-positioned to pay generous dividends in FY 2021 and beyond. Here’s why I would buy them:

Aventus Group (ASX: AVN)

I think Aventus would be well worth considering. Although the pandemic has hit retail property companies hard, I’m optimistic that Aventus will be a lot less impacted than others. This is due to its focus on large format retail parks and the high weighting of its tenancies towards everyday needs.

Aventus counts the likes of ALDI, Bunnings, Officeworks, and The Good Guys as tenants, to name just a few. Given how these companies have continued to thrive during the pandemic, I expect its rental collections to remain solid. In light of this and based on the current Aventus share price, I estimate that it provides investors with an FY 2021 dividend yield of over 6%.

Dicker Data Ltd (ASX: DDR)

A second dividend share I would buy is Dicker Data. I think the wholesale distributor of computer hardware and software across the ANZ region is one of the best and underappreciated dividend shares on the local market. It has been growing its earnings and dividends at a solid rate consistently over the last five years. Pleasingly, this strong form has continued in FY 2020 with Dicker Data reporting record sales and profits in the first half.

This has positioned the company to deliver on its plan to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.5% dividend yield. Another positive is that Dicker Data pays its dividends in quarterly instalments. This could make it a good option for those looking for more regular income.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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