The ASX 200 index had a rough session today as the index dropped off by 0.2%, closing at 7474.5 points today. Afterpay’s acquisition announcement from yesterday continued to drive momentum among the Tech sector stocks, particularly the BNPL sector. APT shares surged once again today, by over 11%. Zip was the other big performer with a 7.5% increase in the Z1P stock price. Among the losers, Pointsbet Holdings was the worst performer as shares slid 13.8%. The broader market was weighed down by underperformance from energy and mining companies as commodity prices, especially iron ore, have slid in the past few days on the back of some fragile sentiment surrounding China’s demand for the metal. With earnings season here, it’s time to consider stocks that offer good dividends as well as growth.
BHP Group is arguably the most well diversified mining and exploration company there is, and it is a part of every investor’s portfolio for different reasons – maybe for the stable dividends, or to decrease the overall volatility of the portfolio. BHP shares are also one of the best blue chip stocks that trade on the ASX. BHP derives revenues from 4 main commodities – Iron Ore, Copper, Coal, and Petroleum. These commodities are very sensitive to the global economic outlook and activity. With economic activity increasing across the developed world, increased demand and inflation fears have resulted in high commodity prices. BHP shares are trading close to its highs posted earlier this year on the back of soaring iron ore prices.
On the back of sky high commodity prices, BHP’s profits will most likely soar once again for full year FY21, just as it did in the half year earnings, resulting in a very healthy dividend payout once again – making BHP shares one of the best income stocks on the ASX.
BHP shares currently trade at $52.96 a share with a dividend yield of 4% – a top dividend share to buy now on the ASX given the impending stellar earnings that BHP is expected to post later this month.
CBA shares breached the $100 mark for the first time in its history. Commonwealth Bank shares have performed extremely well since September 2020. The Federal government’s monetary policy has been one of the driving factors for this performance. Easing of regulations around lending and ultra low interest rates have meant that CBA along with the other Aussie banks have enjoyed a rather favourable operating environment.
In what was dubbed as the reflation trade, CBA shares have been on a hot streak since the end of February as value stocks are now in favour over growth stocks, not just in Australia, but globally. Last week, CBA shares also reached the $100 a share mark for the first time in its grand history. Another positive quarterly result was posted by the firm and this has underpinned the already upbeat performance of the stock and taken it to record highs. Business lending, home lending, and household deposits have all increased once again – resulting in a 2% rise in operating income. The operating environment is extremely favourable for the Aussie banks and our economy is going extremely strong. CBA’s dividends are also expected to be given a boost and there are talks of a buyback also around the corner. Either Way, the banks right now are still a good place to be, and CBA is arguably the best among them.
CBA shares closed at $101.45 a share today, dipping marginally, by 0.21%.
Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your ‘Top 3 Income Stocks to buy in 2021’ Report instantly for free! Click here to download now!