The Xero Limited (ASX: XRO) share price has had an excellent start to 2019. Currently trading at $51.64, the Xero share price has increased by 22.87% in the year to date.

With these gains and the strength of it being one of the most popular cloud-based SaaS providers in the market, I think Xero has a bright future.

What makes Xero shares a buy?

In the first half of this financial year, Xero recorded a 37% increase in operating revenue to NZ$256.5 million. This is no surprise when you consider the strong growth the company had in subscriber numbers throughout 2018.

According to Xero's full-year earnings update in May 2018, the company had 1.386 million subscribers with 351,000 of these joining during FY18. I'll be interested in an update on subscriber numbers in the next full-year earnings update which will be released on 16 May 2019.

Another thing I like about Xero is its focus on becoming a go-to platform for financial services and not just accounting. The company launched its open banking API in late-2018, which gives users access to their bank feeds in Xero in real time. Ultimately, this feature is designed to help business owners make more informed decisions, and drive the company's partnerships with financial institutions.

On the numbers front, Xero is tracking well in terms of revenue growth. The company went from NZ$28.6 million loss in FY17 to positive EBITDA of NZ$26 million in FY18. If this number grows again in the full-year earnings for FY19, I think Xero's share price will continue to push higher.

Foolish takeaway

While Xero doesn't currently pay a dividend, I think the explosive growth of its platform and growing subscriber numbers will continue to strengthen the company.

Xero's core business of providing accounting and small business software means the company provides an essential service to many businesses. As an essential service, it is unlikely a business would cancel its Xero subscription, even in lean times. For that reason, I think Xero could weather an economic downturn quite well.

However, in a risk-off environment, Xero's share price would likely fall as with other technology stocks. If you're investing with a long-term view though, I think the company has a sustainable business model that's delivering an essential service to businesses and that could be a positive addition to your portfolio.

If you're looking for other growth shares, take a look at this small cap growth share that has been rated a buy.

The post Is the Xero Ltd share price a buy? appeared first on The Motley Fool Australia.

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If you're just getting started out with investing and you don't have a lot of money behind you, buying shares in ASX ETFs can be a great way to get your portfolio started.

Not only is it a straightforward process, but one of the best things about investing in an ETF is the broad exposure you can get to different parts of the market without investing in several companies yourself.

And with many of the world's investment elite saying ETFs are a great way to build wealth, it's something that I'll be focused on myself in the following years.

What is Warren Buffett's 90/10 asset allocation?

You may recall Warren Buffett's 90/10 portfolio asset allocation for retirement investing. He says to invest 90% of your money into a low-fee stock index fund and 10% into short-term treasuries.

The focus with the 90/10 asset allocation is having exposure to the stock market while hedging any downside risk with short-term treasuries.

How can you build Warren Buffett's 90/10 asset allocation with ASX ETFs?

You can build your own 90/10 asset allocation using ASX ETFs that give you exposure to the ASX200 and Australian Government Bonds.

The Vanguard Australian Share ETF (ASX: VAS) tracks the performance of the ASX 200. With this ETF you get exposure to Australia's biggest companies like BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES) and the Commonwealth Bank of Australia (ASX: CBA) without needing to buy individual shares in each company. This fund charges a 0.14% management fee.

For exposure to Australian Government Bonds, you could buy shares in the SPDR S&P/ASX Australian Government Bond Fund (ASX: GOVT). It tracks the S&P/ASX Government Bond Index, and it can help you hedge against potential market downturns. The fund charges a management fee of 0.22% and has a current yield of 3.47%.

But, what if you still want to pick your own stocks?

When you have a keen interest in finance and investing, the thought of buying shares in an ASX 200 ETF and Australian Government Bonds ETF could make you feel like you're missing out on picking stocks yourself. You can have the best of both worlds, though.

If you still want to pick your own stocks while building wealth through an ASX 200 ETF, decide on what proportion of your portfolio you want to set aside for picking your own investments. For example, if you have a lower risk appetite like me you may decide on an 80/10/10 split between an ASX 200 ETF, a short-term treasuries ETF and 10% for your own stock picks.

Leaving aside part of your asset allocation for making your own stock picks will give you exposure to the broader market with an ETF while giving you ownership over building out your own stock portfolio. With this approach you can invest like Warren Buffett would while still having some personalised decisions to make up your portfolio.

If you're looking for some blue chip companies to start your stock portfolio, check out these 3 blue chips that have been rated a buy for 2019.

The post How to build Warren Buffett's 90/10 asset allocation with ASX ETFs appeared first on The Motley Fool Australia.

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The BHP Group Ltd (ASX: BHP) share price has been on a tear in recent weeks, edging closer to its 52-week high of $39.91. At the time of writing, BHP's share price is trading 1.48% higher for the day at $39.80.

Recent gains in the BHP share price have been driven by increasing iron ore prices on the back of recent supply disruptions. But does that mean it's in the buy zone?

What's driven recent growth in the BHP share price?

Year to date, the BHP share price has grown by 14.13%. With the company's performance closely linked to China's economic strength and iron ore prices, events from late-March have given BHP shares a leg up.

As we all know, the Chinese economy is the world's top iron ore importer. This is because iron ore is a core ingredient in producing the steel that's needed for the construction industry.

So, when the construction industry is booming in countries like China, we can usually expect mining and resources companies like BHP to perform well. That's what we've seen so far in 2019.

It's also important to note that the BHP-owned Brumadinho dam collapse in Brazil earlier this year has constricted iron ore supply. This has driven iron prices higher which has spurred growth in the BHP share price too.

Should BHP be worried about China?

While the numbers might look attractive for BHP, especially with the growth in the company's share price over the last month, I don't think we can safely say it's smooth sailing ahead for the Chinese economy yet.

And given that the performance of a company like BHP is so closely linked to the strength of China's economy, it's important to understand how China's economy is really performing.

The media have widely reported that the latest US-China trade talks have been progressing well. That may be the case, but there are a lot of other factors influencing China's economy like its GDP annual growth rate.

China's GDP annual growth rate was 6.6% for 2018, the lowest rate in twenty-eight years. This is not exactly the news you want to be hearing out of an economy coming off its biggest construction boom in history.

Foolish takeaway

When I'm looking at companies, understanding the macro picture carries a lot of weight for me. After all, that's going to give you an indication of how your investment is going to perform, and it can help to keep your expectations in check.

Based on the mixed economic data out of China and the supply restrictions that have been driving iron ore prices higher, I'd stay on the sidelines with buying BHP shares until US-China trade talks conclude and the data out of China is clearer.

Are you looking for some other blue-chip shares to add to your portfolio in April? Here are three shares that have been rated a buy for April.

The post As it nears its 52-week high, is the BHP share price a buy? appeared first on The Motley Fool Australia.

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For many of us, a credit card is great for online shopping and helping you buy the essentials when finances are tight before payday. And while this is convenient, what if you could make your credit card work even harder for you?

The most popular way to make your credit card work for you is picking a card that will help you accumulate frequent flyer points with your favourite airline. After all, picking the right points-earning credit card and spending wisely with it can be the difference between eating with plastic cutlery in economy class or sipping a glass of champagne before take-off. I know which option I'd prefer!

Pick an airline and stay loyal when you choose a credit card

The first thing you need to do before you pick a points-earning credit card is to choose an airline and stay loyal. If you're a frequent overseas traveller, you'll also need to make sure your airline of choice has international partner airlines that you like as well.

For example, when I was picking my points-earning credit card, I knew that Qantas Airways Limited (ASX: QAN) was my favourite domestic airline, but I also needed to consider its international partners. Recently partnering with Emirates (my favourite choice when travelling to Europe), I knew I'd be happy to stick with accumulating Qantas frequent flyer points.

Is a direct-earn or flexible points credit card better?

The next thing you need to decide is if you want a direct-earn or flexible points credit card. A direct-earn credit card will automatically transfer the points you've accumulated each month straight to your frequent flyer point balance. With a flexible points credit card, the points will accumulate with your credit card provider's award program. You'll then have the option to transfer your points to your frequent flyer program of choice.

The main things to consider between a direct-earn or flexible points credit card is the points earn rate and annual fee. Direct-earn credit cards typically have a dollars spent to points earned ratio of 1:1, while the ratios for flexible points cards is typically 0.5:1. Bear in mind that while the flexible points cards have a lower dollar to points ratio, the annual fees on these cards are lower.

Determine the value of your frequent flyer points

Finally, you'll need to determine the value of your frequent flyer points when it comes to using your points. This value will change every time you book a flight, but the same rule applies to each flight. You don't want the value of the points you use on a flight to exceed the cost of the flight itself.

For example, if you're looking at a flight that's $804 and it will be 120,000 points to book, that equates to $0.67 per point. To see if you'll be out of pocket by using points, divide the cost of the flight by the dollar value of each point. In this case, the dollar value is $1,200, so you'd be out of pocket by $396 if you used frequent flyer points to book the flight.

Foolish takeaway

Collecting frequent flyer points for your everyday spending is a great way to be rewarded just for doing the groceries. Just make sure you don't increase your spending purely to earn more points. There's always a temptation to do that, but it's counterproductive.

The post How to pick a points-earning credit card appeared first on The Motley Fool Australia.

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We all know investing in shares can be risky; that's why you get a return. Not all shares are as risky as others, though. If you're looking for exposure to the Australian stock market, but you have a low-risk tolerance, ASX utility shares could be a great addition to your portfolio.

Mature utility companies are stable, and they usually have a strong customer-base and healthy cash flow. Another thing that makes these companies attractive is the essential services they provide such as electricity, gas, water, and internet.

How is the utility sector in Australia performing?

In the financial year to date, the ASX200 Utilities Index (ASX: XUJ) has risen by 8.43%. Increasing steadily from the $4,000 mark in 2010 to its current share price of $8127.80, the utility sector in Australia is looking strong and steady.

Here are 2 ASX utility sector shares to consider buying in April:

AGL Energy Limited (ASX: AGL)

As one of Australia's largest energy companies, AGL Energy Limited is a fantastic option to gain exposure to utilities. Currently trading at $21.84, the AGL share price has seen strong growth since late-2018.

Another factor I like about AGL is its diverse portfolio across traditional and renewable energy sources. The company's dividend yield of 5.46% also makes this an attractive option.

Ausnet Services Limited (ASX: AST)

Ausnet Services Limited owns and operates the electricity transmission network in Victoria. With a variety of energy and infrastructure products and services, the company has a strong customer base from households to corporate companies and the public sector.  

The company also announced in late-March that it was working with the Victorian government to make sure it maximises the benefits of the Victorian government's solar homes policy. This policy currently provides a 50% rebate up to the value of a 4kW solar panel system. That means Victorian households will get a rebate of around $2,225 if they install solar panels at their property.

With the push for renewable energy sources continuing across Australia, plus Ausnet's core business operating Victoria's electricity network, I think this is a good long-term play for steady and stable growth in your portfolio.

At the time of writing, the Ausnet share price is trading at $1.81. And with a healthy dividend yield of 5.28%, this could be another great addition to your portfolio.

Foolish takeaway

It's important to remember that investing in ASX utility sector shares isn't going to result in astronomical returns in the short-term. Over the long-term, however, it's these types of shares that can provide steady returns year after year.

If you choose to reinvest your dividends and let your portfolio grow over time, your investment could compound into a healthy balance in the years to come. This is where investing becomes very powerful — when your portfolio grows to a balance that allows you to live off a portion of your capital growth and dividends.

Adding bluechip shares to your portfolio can be a great compliment to these utility sector shares. Check out the Motley Fool's top 3 bluechip shares for 2019.

The post 2 ASX utility sector shares to buy in April appeared first on The Motley Fool Australia.

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With the Federal Budget being handed down on Tuesday night, and looming uncertainty about Australia's economy, I've seen a lot of coverage about whether ASX bank shares are a buy right now.

While the big four banks Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB), Westpac Banking Corp  (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) might have what it takes to ride the wave of economic uncertainty, it's the smaller banks that have me curious and a bit worried.

How has the Bendigo and Adelaide Bank share price performed in 2019?

Year to date, the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has declined by 8.5%. A large part of this decline came from it's high for the year to date of $11.33. This was driven by changes to the bank's reverse mortgage product, Homesafe, in February.

Bendigo and Adelaide Bank's Homesafe product allows homeowners to dip into their home equity without losing their home.

In the six months to December 2018, Homesafe had a revaluation that poorly affected the bank's statutory profit to the tune of $5.4 million. Compared to the positive contribution of $39.6 million from Homesafe for the six months to June 2018, things aren't looking good for the bank's Homesafe portfolio.

At the time of writing, the Bendigo and Adelaide Bank share price is trading at $9.88.

What do brokers think of Bendigo and Adelaide Bank?

Many brokers including Morgan Stanley, Deutsche Bank, Credit Suisse, and Ord Minnett all agree there are challenging times ahead for the regional bank. Upon the release of Bendigo and Adelaide Bank's half-yearly earnings in February, these brokers all cited interest margin pressure and the risks of Homesafe as big risk factors.

On a positive note, the bank had an 18% increase in new customers in the first half of the financial year while customer turnover was flat. This is good news for the bank, but still not enough to warrant buying Bendigo and Adelaide Bank shares at this time.

Foolish takeaway

With the level of uncertainty in Australia's housing market and broader economy continuing, I'd be steering clear of banking shares right now and focusing on recession-proofing my portfolio with utilities and healthcare stocks.

Looking for high-growth stocks to add to your portfolio? This stock is at the cusp of what could be the next booming industry in Australia.

The post Is the Bendigo and Adelaide Bank share price a buy? appeared first on The Motley Fool Australia.

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Australia's last recession was 27 years ago, starting in September 1990.

Since the early 1990s, our economy has enjoyed decades of economic growth — the mining boom from 2002 to 2012 and the recent housing price surge in Melbourne and Sydney being two of the biggest examples. But recently, it looks like Australia's economic growth is beginning to soften.

In March, it was widely reported that Australia had two consecutive quarters of negative gross domestic product (GDP) growth for the September and December quarters in 2018. At -0.1% and -0.02% respectively, we have officially entered a per-capita recession.

What does it mean to be in a per-capita recession?

GDP measures the total value of goods and services produced by a country. Most central banks and governments around the world like to target between 2% and 3% GDP growth each year. This is the sweet spot between a declining economy with deflation and a growing economy with high inflation.

When the big figures that impact an economy weaken, that's when you get a recession. A per-capita recession, however, is different.

A per-capita recession means the population is growing at a faster rate than the economy. To use an analogy, the slices in a pie are growing faster than the pie itself.

3 ASX shares you can buy to pro officially entered a per-capita recession tect yourself in a recession

In any market cycle, there'll be winners and losers. To be a winner, the best thing you can do is be prepared and invest defensively until economic growth returns. Here are 3 ASX shares you can buy to protect yourself in a recession:

AGL Energy Limited (ASX: AGL)

People need gas, electricity and hot water, and that's not going to change in a recession. As one of Australia's largest energy providers and gas suppliers, AGL Energy is a great defensive buy. With a 5.46% dividend yield, this will provide you with stable cash flow to spend or reinvest.

Long-term, AGL Energy's focus on renewable energy will also put the company in a competitive position as the world looks to move to more sustainable energy sources.

Sonic Healthcare Limited (ASX: SHL)

Heading into a recession isn't going to slow demand for medical diagnostics. As an international medical diagnostics company, Sonic Healthcare Limited is a great option for adding healthcare shares to your portfolio.

With a recent acquisition in the US, plus its other services including laboratory, radiology and primary healthcare services, Sonic Healthcare Limited is likely to continue its strong growth especially if it meets or exceeds its annual earnings guidance.

Betashares Global Healthcare ETF (ASX: DRUG)

Economic growth has slowed around the world recently making Betashares Global Healthcare ETF another great investment to balance your portfolio. This ETF tracks an index of international healthcare companies.

Year to date, the Betashare Global Healthcare share price has grown by 5.95%. While this isn't the astronomical growth we've seen from other companies this year, the need for healthcare coupled with a globally ageing population makes this another great defensive investment option.

Foolish takeaway

It's important to remember we're not in a full-blown recession. To enter a recession, other numbers would need to weaken too such as consumer spending and export prices.

So, while we're not in a recession yet, it's good to be prepared by making sure your portfolio is balanced with stocks that still perform well in an economic downturn.

Looking for more than 3 recession-proof shares for your portfolio? Check out the Motley Fool's top 3 bluechip shares for 2019.

The post 3 ASX shares to buy to recession-proof your portfolio appeared first on The Motley Fool Australia.

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The Australian share market has had its best start to the year since 1991. Driven by gains in financial, telco, retail, healthcare and mining stocks, the Australian sharemarket rose 9.5% in the first quarter.

In the healthcare sector, all eyes have been on Healthscope Limited (ASX: HSO) since the company announced the Canadian investment firm, Brookfield's takeover offer on February 1.

Year to date, the Healthscope share price has increased by 10.5% to its current price of $2.45. Unsurprisingly, most of the growth in the company's share price this year happened on the announcement of the takeover offer.

What's happening with the takeover talks between Healthscope and Brookfield?

Brookfield received approval from the Foreign Investment Review Board (FIRB) to acquire Healthscope Limited in mid-March.

Following the FIRB approval, the Australian Securities and Investments Commission (ASIC) gave Brookfield until April 24 to release the offer documents. Brookfield was given this extra time, compared to the usual two months, as Healthscope wants an independent expert to review the offer documents.

In a nutshell, the public won't know much until April 24 when the offer documents are released.

Should you buy Healthscope shares right now?

Given the uncertainty about whether Brookfield will acquire 100% or 50.1% of Healthscope, I think it would be wise to stay on the sidelines until a decision is made. And while you're waiting, look into CSL Limited (ASX: CSL), Estia Health Ltd (ASX: EHE), or Ramsay Health Care Ltd (ASX: RHC). Year to date, these companies have had solid growth in their share prices:

• CSL Limited share price is up 7.65%
• Estia Health Ltd share price is up 14.99%
• Ramsay Health Care Ltd share price is up 9.6%

Foolish takeaway

As you're researching shares, you may come across a company you're interested in and find out it's in takeover talks just like Healthscope.

While it can be tempting to jump in on the action as the company's name is splashed around in the news, I think it's best to wait until a decision is made and the hype dies down. This is particularly important for investors with a low appetite for risk as share prices can move violently during a takeover.

If you have a higher risk appetite and you're looking to profit from an industry set to take Australia by storm, check out this ASX company.

The post Are Healthscope Limited shares a buy as takeover talks continue? appeared first on The Motley Fool Australia.

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Today's trading day had a soft start as uncertainty about the slowing global economy continued. But this hasn't stopped the G8 Education Ltd (ASX: GEM) share price from edging higher.

At the time of writing, the education and childcare company's shares have climbed by 2.76% to $2.98.

Is G8 Education Ltd a buy?

Year to date, the G8 Education Limited share price is up 12.26%.

In consensus data published on 20 March 2019, G8 Education was classified as a strong buy with 8 analysts classifying the company as a buy, 3 analysts classifying the company as a hold and 2 analysts classifying the company as a sell.

Still trading below its 52-week high of $3.63, this indicates the G8 Education share price could be good value.

With a dividend yield of 6.21% and a price-to-earnings ratio of 18.3, this also looks good for investors searching for dividends and strong share price growth.

Why are brokers bullish on G8 Education?

In early-March, G8 Education's CEO, Gary Carroll announced the company would be opening 15 to 20 new childcare centres annually over the next few years.

Along with the new centres, about $25 million per year for the next two years is going to be spent refurbishing 100 of the company's existing centres.

Add this to the company's established network of 502 childcare centres, and G8 Education looks set to continue as the largest childcare centre operator in Australia for the foreseeable future.

The big question with the company's expansion and refurbishing plans over the coming years is — how is this going to impact their free cash flow and earnings?

Foolish takeaway

With the amount of capital expenditure and debt that will be required for G8 Education to continue expanding over the coming years, this could affect the company's earnings in the short-term.

The company's dividend yield relative to its scale is also a consideration if dividends are an important part of your investing strategy.  

Based on G8 Education's continued expansion plans over the next few years, the company looks to be some time away from maturing.

If you're going to buy G8 Education Limited shares, I'd make this a long-term play keeping in mind that companies in the early education and childcare services industry have a lot of fixed expenses to cover.

The post Are G8 Education Limited shares in the buy zone? appeared first on The Motley Fool Australia.

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Since the banking royal commission began in December 2017, all eyes have been on Australia's financial services industry, particularly Australia's big four banks.

Year to date in 2019, the Commonwealth Bank of Australia (ASX: CBA) share price is down 2.32% to its current price of $70.71.

Performing slightly better than it's sector counterparts, at 3.32% above the sector average, the CBA share price is performing 8.04% below the ASX 200 average.

CBA's current profit-to-earnings ratio is 13.8 which is slightly higher than the other big four banks that range from 11.1 to 12.5. The relatively high dividend yield of CBA compared to other ASX-listed companies also makes CBA shares look attractive.

Looking purely at the numbers, the CBA share price looks like it could be a good buy. But, numbers can be deceiving.

With the current level of uncertainty in Australia's markets from the findings of the banking royal commission to declining property prices, it demonstrates the importance of understanding the macro picture when you're analysing stocks.

The fallout from the Royal Commission

A number of damaging findings about CBA were revealed in the banking royal commission. It was found the bank incorrectly sold credit card insurance to more than 60,000 unemployed customers. It was also discovered that fees charged by the bank's financial planning business, Commonwealth Financial Planning Limited (CFPL) were charged without delivering adequate advice and service.

In the lead up to the release of the final report from the banking royal commission, the Australian Securities and Investments Commission (ASIC) banned CFPL from charging fees and taking on new customers. Until the fee and conduct issues are resolved at CFPL, its 300 salaried planners have to operate without charging fees.

These issues don't bode well for investor confidence, and uncertainty in Australia's housing market isn't making things any better.

Will falling house prices in Sydney and Melbourne affect the CBA share price?

A recent study from BIS Oxford Economics found that property price falls in Sydney are only halfway to its trough before the market could pick up again.

Downturns in Sydney property prices usually last 14 quarters and have an average real price decline of 21%. As of March, we are six quarters into price declines with real prices declining by 16%. Based on the average length of a downturn in house prices, this means there could be at least another year or two of falling house prices before prices hit a trough.

With CBA being the largest mortgage lender in Australia, carrying a total balance of $374 billion across 1.5 million home loan accounts, further declines in house prices have the potential to jeopardise the company's performance.

The risk to CBA's share price is also amplified by the fact that $120 billion worth of interest-only mortgages will transfer to principal and interest mortgages over the next three years.

Foolish takeaway

While CBA shares might look attractive on paper, current market sentiment, property market uncertainty and the late-stage of the current business cycle are all factors indicating that now is not the time to be exposed to banking stocks.

If you're feeling impatient, however, why not check out this ASX company that is touted as being poised to benefit from a $22 billion boom industry.

The post Is now the right time to buy CBA shares? appeared first on The Motley Fool Australia.

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While the profit reporting season in February saw dividend payouts reach a record $29.4 billion, company profits haven't lifted as much as in previous years.

Of the 93% of companies that reported interim results in February, only 49% of these companies lifted profits from the previous year.

Two of the biggest catalysts driving the challenge for ASX-listed companies to keep lifting profits is growing margin pressure and the maturity of many industries in Australia. Industry maturity means that a good majority of the companies in the ASX 200 are no longer in aggressive growth phases. Investing in this type of environment makes dividend yields even more important.

With a dividend yield of 12.28% during the February reporting season and a current dividend yield of 11.99%, Alumina Limited (ASX: AWC) could present a great buying opportunity.

How did the Alumina share price perform after its FY18 earnings results?

Alumina Limited is an Australian resources company that invests in bauxite mining, alumina refining and aluminium smelting operations. The company has 40% ownership of Alcoa World Alumina and Chemicals (AWAC), and AWAC, in turn, has a 55% interest in Victoria's Portland smelter.

At its FY18 earning results on 21 February, the company reported a statutory net profit after tax of US635.4 million for the year ending 31 December 2018. This represents an 87% increase from the previous financial year.

Alumina's CEO Mike Ferraro had lots of positive things to say when the results were announced. "This is a record result for our Company, culminating in the highest profit and largest annual dividend paid to shareholders in our history," said Mr. Ferraro.

"The Company has declared a final dividend 52% higher than last year and 2018 total dividends up 68% over the previous year. Alumina Limited's unrivalled focus on alumina has delivered outstanding returns to shareholders."

Upon the release of its FY18 results, the Alumina Limited share price increased slightly from $2.66 to $2.75 in the following trading days. In the month following, the Alumina Limited share price dropped to $2.52, growing steadily back to its current price at $2.57.

Is Alumina Limited a buy?

Year to date, the Alumina Limited share price has grown steadily by 10.85%. This steady growth coupled with the company's current dividend yield of 11.99% means this could be a great buying opportunity for investors who are looking for healthy dividend yields in their portfolios. With this high dividend yield, it could be a nice cash boost each earnings season, or you could reinvest the dividends to keep compounding your returns.

It's important to keep in mind that resources can be a volatile industry and the share prices of companies in this industry can be subject to violent price movements.

For more ASX dividend share ideas, check out these 3 top dividend shares for 2019.

The post With its 12% dividend yield, is the Alumina share price a buy? appeared first on The Motley Fool Australia.

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The VIVA Energy REIT Ltd (ASX: VVR) share price has climbed 2.02% higher to hit a 52-week high of $2.53 in Tuesday afternoon trade. The REIT has seen its share price grow by 26.5% over the last 12 months and 12.5% since the beginning of 2019. 

What is VIVA Energy REIT?

Viva Energy REIT is an Australian REIT group that owns a high-quality portfolio of service stations around Australia. The company has a market cap of around $1.92 billion. As a stapled entity, VIVA Energy REIT shares provide investors with one share in Viva Energy REIT Ltd and one unit in the Viva Energy REIT Trust.

Buying shares in a company like Viva Energy REIT provides investors with exposure to commercial property without the complications that come with direct property ownership.

With a portfolio of 437 Shell-branded service station properties around Australia, VIVA Energy REIT's properties are typically operated by Coles Group Ltd (ASX: COL) as Coles Express service stations.

Based on the latest consensus data published on 20 March, Viva Energy REIT is classed as a strong buy with three analysts currently classifying the company as a buy, and one analyst classifying it as a hold.

How does VIVA Energy REIT compare to other Australian REITs?

VIVA Energy REIT's performance is on par with other big Australian REITs including Scentre Group (ASX: SCG), Shopping Centres Australasia Property Group Re Ltd (ASX: SCP), Unibail-Rodamco-Westfield (ASX: URW), and Vicinity Centres Re Ltd (ASX: VCX).

The company's current P/E ratio is 10.97 – compared to the market average P/E ratio of 14.80 and the sector's average P/E ratio of 15.7.

VIVA Energy REIT's P/E growth is 0.00 compared to 1.11 for the market and 1.45 for the sector. A P/E growth ratio of less than 1 generally means a stock is undervalued and it could be a good time to buy. This is good news for investors looking at VIVA Energy REIT as a buy opportunity.

So, is Viva Energy REIT a buy?

A look at VIVA Energy REIT's majority shareholders demonstrates that the company is owned by some of the worlds largest financial institutions.

Viva Energy REIT's five largest substantial shareholders include Viva Energy Australia Group (38.04%), HSBC Custody Nominees (Australia) Limited (15.38%), JP Morgan Nominees Australia Limited (13.09%), BNP Paribas Nominees Pty Ltd (4.41%), and Citicorp Nominees Pty Limited (4.37%).

In the company's HY18 results released in August 2018, it was reported that Coles Express' revenue has grown at a compound annual growth rate (CAGR) of 5% since Viva Energy REIT and Coles Express formed its alliance in 2003. This alliance will go until 2024 with the possibility of a 5-year extension.

The Petrol and Convenience industry is an $8.4 billion market in Australia, growing between 3.4% and 4.5% per annum for the 5 years to 2017.

On the back of Viva Energy REIT's attractive P/E growth ratio, its alliance with Coles Express and the steady growth of the Petrol and Convenience industry in Australia now could be a great time to buy Viva Energy REIT shares.

No, this isn't a tech unicorn stock that could soar by year-end, but it's a great way to get exposure to commercial property in an industry that sells some of our household essentials.

The post Is the Viva Energy REIT share price a buy? appeared first on The Motley Fool Australia.

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Since its IPO in January 2015, the Appen Ltd (ASX: APX) share price has enjoyed four years of tremendous growth. Starting with an offer price of 50 cents per share in their IPO, the Appen share price is now $22.11. This represents around 4,700% growth in the company's share price since its IPO.

Appen partners with technology, automotive and eCommerce companies and governments to provide data annotation and collection to create products and services for natural language and machine learning.

It's important to remember that not every small-cap technology stock will have this kind of success post-IPO. It is Appen's work in the growing artificial intelligence (AI) sector combined with strong EBITDA growth that's seen its share price soar.

What has driven strong growth in the Appen share price?

A few factors are driving strong growth in Appen's share price. Since its IPO, the company has posted strong EBITDA growth. In its FY18 results, the company reported revenue growth of 119% to $364.3 million. Most importantly, the company's net profit after tax grew by 148% to $49 million in FY18.

With a December year-end, we'll have a better understanding of how Appen is performing in FY19 when it releases its half-year results in August. There's also the possibility the company may issue an earnings upgrade before this time.

In mid-February, it was reported that Appen's forward order book totalled $165 million which equates to 45% of total sales in FY18. This is a strong indicator that the Appen share price could continue its strong growth rate.

The other core component that has been driving strong growth is its acquisitions of competitors. Appen acquired Leapforce, its US-based competitor in late-2017 for $105.3 million. This acquisition was financed with 80% cash and 20% equity. Appen offered a $5 million share purchase plan at the time of this acquisition.

Appen's latest acquisition is Figure Eight. Announced earlier this month, Appen will acquire the machine learning company for US$175 million upfront. In 2020, an additional payment of US$125 million will be due based on 2019 performance. The company had a capital raising of AU$285 million in early-March to acquire Figure Eight Technologies.

Is Appen still a buy?

Looking at Appen's strong earnings results and approximate 40x forward P/E estimate, the company still looks like a strong buy to me.

Being a technology stock, companies like Appen enjoy strong growth in risk on periods where there's more appetite for risk. In risk-off periods, however, the Appen share price will likely decline. For example, from August to October last year, the Appen share price declined by 35% as markets went through a risk-off phase.

The post The Appen share price is up over 140% in 12 months: Is it still a buy? appeared first on The Motley Fool Australia.

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With the ongoing uncertainty in Australia's housing market and the outcomes of the Banking Royal Commission beginning to show its full effects on some of Australia's biggest companies, financial services, resources, and construction companies have been among the worst performers in the S&P/ASX 200 this year.

Among this group of companies feeling the brunt of market uncertainty is Adelaide Brighton Ltd (ASX: ABC).

In the last 12 months, the Adelaide Brighton share price has fallen 32.5%. As one of Australia's largest manufacturers of construction materials including cement, lime and aggregates, it's easy to see why the company's share price has struggled in the wake of the housing market's woes.

And it's not just the housing market that's affecting the Adelaide Brighton share price. Earlier this month the company's management communicated that cost pressures from energy and imports would affect the company's performance in this financial year as well.

Why has the Adelaide Brighton share price fallen?

Trading at $4.60 at the time of writing, down from its 52-week high of $7.07 in July 2018, Adelaide Brighton is certainly looking like its share price is under constant pressure.

Full-year results for the 12 months ending 31 December 2018 were released earlier this month, detailing that while clinker and cement sales increased by 1.1%, pressures on its cement margins remained a problem. This is a result of declining volumes,  lower average realised prices and increased import costs. The Adelaide Brighton share price fell 6% following this report.

Beyond uncertain market conditions and pricing pressures, the other immediate risk for Adelaide Brighton is its corporate governance. At its Annual General Meeting on 10 May 2019, the company board will vote on whether Raymond Barro's sister, Rhonda Barro, will join the company as a Director. Barro Properties currently has a 43% stake in Adelaide Brighton and has two Directors on the board including Raymond Barro.

If Rhonda Barro is elected to the board, this will see representatives of Barro Properties' entity having a majority on the board. The company in the past, however, has held a strong stance on corporate governance sticking with the ASX Corporate Governance Council's recommendation that a company board always has to have a majority of independent directors.

Should you buy Adelaide Brighton shares?

Adelaide Brighton is a prime example of a company that's performance is correlated with the performance of Australia's construction industry and housing market.

With the outlook on Australia's housing market still uncertain, and other operational and financial risks that the company needs to address this year, I think it's best to maintain a 'wait and see' approach with Adelaide Brighton. This also serves as an example of how to approach your outlook on other companies who are price takers (companies whose pricing is dependent on the market). You don't want to jump into an investment in a price taker company in uncertain market conditions.

With the global macro picture increasingly uncertain, now is the time to be focused on sectors that perform best in uncertain market conditions like utilities and healthcare, or on these top blue-chip shares.

The post Adelaide Brighton's share price is down 32% in the last 12 months: Is it a buy? appeared first on The Motley Fool Australia.

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