In afternoon trade on Tuesday, shares in the integrated accounting and wealth services provider are changing hands for $1.08 apiece, up 0.5%.

The All Ords, on the other hand, is down 1.5% at this same time.

Taking a step back, the CountPlus share price has surged 56.5% since the recent 7 April closing low. Sweetening those returns, the ASX All Ords stock also trades on a 4.3% fully franked trailing dividend yield.

While those gains have come and gone, the analysts at Canaccord Genuity forecast another year of outperformance ahead.

Here's why.

ASX All Ords stock on the growth path

CountPlus held its annual general meeting (AGM) on 10 November.

CEO Hugh Humphrey noted that the ASX All Ords stock had more than $5.1 billion of funds under management (FUM) within its Count Investment Solutions as at 1 October.

And he used the occasion to highlight the company's FY 2025 growth successes.

Core metrics included a 67% increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITA) growth to $27.7 million. And underlying net profit after tax (NPAT) attributable to Count shareholders was up 89% year on year to $10.9 million.

Looking ahead, Humphrey noted, "Our Q1 FY2026 trading update showed continued momentum, with unaudited revenue of $42.3 million (up +12.5% on Q1 FY2025) and unaudited underlying EBITA of $7.6 million (up +12.7% on Q1 FY2025)."

Broker tip 25% upside for CountPlus shares

Having reviewed the first-quarter (Q1 FY 2026) update from the ASX All Ords stock, Canaccord noted:

In our view, the 1Q26 trading update reflects continued solid operating momentum and underlying performance for the business. We believe we are yet to see the full effect of the flywheel providing uplift on cross-sell between (and within divisions).

Whilst we believe there is some benefit from the flywheel already, we do not believe it is close to its capacity and expect to see further improvement over the next 18 months.

In maintaining its buy rating on CountPlus, the broker said:

In our view, CUP remains a compelling investment opportunity with solid organic growth likely to continue for several years with the prospect of slightly higher than current rates as the 'flywheel' of business improvement speeds up.

That organic growth backdrop is coupled with significant M&A opportunity, and we believe a strong platform to successfully evaluate and then integrate prospective acquisitions.

Canaccord has a 12-month price target of $1.35 on CountPlus shares. That represents a potential upside of 25% for the ASX All Ords stock. And that's not including those upcoming dividends.

The post Up 57% since April, why this dividend paying ASX All Ords stock is tipped to leap another 25% appeared first on The Motley Fool Australia.

Retirement can mean different things to different people. Some people might want to keep working part-time because they enjoy the work and the mental stimulation it brings. Some just want to stop all work altogether – if that's you then I'd want to make sure you can tick off most or all of these things:

You're at the right age and wealth to retire

A lot of people aren't able to retire until they reach a certain age where they can get the age pension and/or access their superannuation account funds. For most people the pension and their super will be the two main things funding the rest of their lives. So if you're at the right access age, then that's a huge box ticked.

However, you may be part of the financial independence, retire early (FIRE) crowd that younger and are building up a large amount of assets outside of superannuation. You'll need to decide how much wealth and income you need to retire, but if you've hit that figure (or more) then you could be ready.

There are plenty of businesses that are directly or indirectly involved in helping people get into the right financial position for retirement such as IOOF Holdings Limited (ASX: IFL), Hub24 Ltd (ASX: HUB), Netwealth Group Ltd (ASX: NWL) and Countplus Ltd (ASX: CUP).

You have factored in living costs

People  who retire have probably got a decent understanding of their income and expenses, but it's important to consider different scenarios.

Sure, this year's life spending is likely to be similar to last year. But have you considered if you and your investments are able to deal with a sizeable increase in inflation. Would your finances be able to cover a serious medical problem?

Do your finances cover all of the travelling and such that you want to do? Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) don't offer their services for free.

You'd be comfortable even during a recession

It's inevitable that recessions happen every once in a while. Your finances need to be able to withstand a recession or else it could ruin the rest of your life.

The GFC was one of the worst financial events in economic history. But in share market terms it only took a couple of years and the dividends from investments like Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) were quick to bounce back.

So I'd want to have at least two years of living expenses saved up in cash before completely retiring.

Foolish takeaway

I'm a long way from retiring, but I've got a long-term plan and I'm slowly working towards it.

The post 3 signs you're ready to retire appeared first on The Motley Fool Australia.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has been active this week with news, with some of the updates related to planning for the steady shift to online retailing.

Earlier in the week the old conglomerate announced the $230 million acquisition of Catch Group to boost its online offering. It seems to be needed with the Kmart Group guiding for a fall in profit in FY19.

News also broke that Bunnings will probably be available for online shopping by the end of the year.

Afterpay Touch Group Ltd (ASX: APT) 

Afterpay also had an eventful week as it was announced that the buy now, pay later operator was facing AUSTRAC issues and faces an external audit.

The ASX has been asking questions of Afterpay to make sure the AUSTRAC issues weren't a problem with the capital raising.

However, on the positive side it was announced that Afterpay would be entering the ASX 100 along with Beach Energy Ltd (ASX: BPT), taking the place of Janus Henderson PLC (ASX: JHG) and Adelaide Brighton Ltd (ASX: ABC).

Coles Group Limited (ASX: COL)

The supermarket giant was in the news this week as we learned that the company plans to cut some jobs at the head office.

Around 450 jobs are on the chopping block to save on costs whilst the business also shuffles around some of its management in different positions.

Apparently, Coles has also stolen a management position from Metcash Limited (ASX: MTS).  

Commonwealth Bank of Australia (ASX: CBA)

Our largest bank also made the news this week after announcing that it was selling its Count Financial business to Countplus Ltd (ASX: CUP) for $2.5 million.

Assuming the sale goes ahead, the big bank will then steadily sell its CountPlus shares over time and exit the business entirely.

The post 4 investment stories you missed in the ASX200 this week appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.02% to 6,542.40
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.15% to 6,619.10
• AUD/USD at US 69 cents
• Gold at US$1,337.22 an ounce
• Brent Oil at US$62.38 a barrel

The best-performing ASX 200 share today was the Bingo Industries Ltd (ASX: BIN) share price which rose more than 5%.

The share price of Afterpay Touch Group Ltd (ASX: APT) fell 12% after announcing that AUSTRAC wants it to appoint an auditor.

The Carsales.Com Ltd (ASX: CAR) share price end up 0.5% as it flagged flat profit growth and the potential sale of Stratton Finance.

Retail is going through a tough phase at the moment, which is why the Wesfarmers Ltd (ASX: WES) share price fell 5.2% due to a profit hit at its Kmart Group.

The Telstra Corporation Ltd (ASX: TLS) share price rose another 1.9% as it hit another 52-week high.

The share price of Commonwealth Bank of Australia (ASX: CBA) ended 0.7% higher after the bank announced it's selling its Count Financial business. The share price of the purchaser, Countplus Ltd (ASX: CUP), went up 36% today.

Finally, the share price of Appen Ltd (ASX: APX) dropped 7% with the CEO selling some shares.

Here are some of today's top stories:    

• Here are some key investment lessons I've learned
• How the deflating $11.5 billion Chinese tourism boom can hurt these ASX stocks
• Why the Data#3 share price is printing record highs
• Why the Praemium share price zoomed 11% higher today

The post ALL ORDINARIES finishes lower Thursday: 8 shares you missed appeared first on The Motley Fool Australia.

At the time of writing the banking giant's shares are up 0.3% to $80.11.

What has CBA divested?

This morning CBA announced that it has entered into an agreement to sell the Count Financial business to Countplus Ltd (ASX: CUP) for $2.5 million.

Given its historical corporate relationship and equity holdings, CBA felt CountPlus was the logical owner of the financial advice business.

According to the release, CBA will continue to support and manage customer remediation matters arising from past issues at Count Financial, including after the completion of the transaction.

It has also agreed to provide an indemnity to CountPlus of $200 million and all claims under the indemnity must be notified to CBA within four years of completion.

This indemnity amount represents a potential contingent liability of $56 million in excess of the previously disclosed customer remediation provisions that the bank has made in relation to Count Financial of $144 million.

The transaction remains subject to a CountPlus shareholder vote to be held in August. If its shareholders approve the transaction, completion is expected to occur in October. After which, CBA intends to sell its shareholding in CountPlus in an orderly manner over time.

Whilst the transaction is not expected to have a material impact on CBA's net profit after tax, shareholders are likely to be pleased to see the back of a business that is expected to be a drag on its bottom line this year. Management estimates that Count Financial will incur a post-tax loss of approximately $13 million in FY 2019.

This transaction will mean that CBA's NewCo segment will be left with Colonial First State, Financial Wisdom, Aussie Home Loans, and its 16% stake in Mortgage Choice Limited (ASX: MOC).

CBA advised that it remains committed to exiting all these businesses over time, but that its current focus is on continuing to implement the recommendations from the Royal Commission and ensuring it puts things right by its customers.

The post CBA share price higher on Count Financial divestment news appeared first on The Motley Fool Australia.

In afternoon trade the accounting company's shares are down 13% to 51 cents.

What happened?

This morning the company provided the market with an update in relation to its strategic review and made changes to its dividend policy.

According to today's release, management has conducted an extensive strategic review of each of the 19 member firms within the Countplus network.

Following a review, the company has decided to sell three and merge two member firms that were acting as a drag on its performance.

The three member firms that have been sold generated an aggregate operating loss for the 2017 financial year of around $160,000.

Furthermore, investors appear disappointed that it has revised its dividend policy to move from quarterly to half-yearly dividend payments. Management will aim to pay out between 40% to 70% of maintainable net profit after tax and minority interests.

The post Countplus Ltd share price plunges 13% appeared first on The Motley Fool Australia.

Unfortunately not all shares have followed the market higher today. Here's why these four shares are ending the week in the red:

The Audio Pixels Holdings Ltd (ASX: AKP) share price has tumbled 4% to $20.23. This is the second day in a row of declines and means that the digital speaker developer's shares have now given back a sizeable junk of Tuesday's massive gain. Its shares rocketed 22% higher that day after it announced that it had completed the development of a production process for the critical points of contact layers of its micro-electromechanical structures.

The Countplus Ltd (ASX: CUP) share price has plunged 15% to 50 cents after the accounting company updated the market on its extensive strategic review and subsequent changes to its dividend policy. The company plans to revise its dividend policy to move from quarterly to half-yearly dividend payments and will aim to pay out approximately 40% to 70% of maintainable net profit after tax and minority interests.

The St Barbara Ltd (ASX: SBM) share price has dropped over 5% to $2.69. The majority of Australia's gold miners have sunk lower today after the spot gold price fell overnight. At present the spot gold price is fetching US$1,217.92 an ounce, down slightly since yesterday. But judging by the sell-off today, many investors appear to believe it could fall a lot further from here.

The Slater & Gordon Limited (ASX: SGH) share price has fallen 6.5% to 8.6 cents. Today's decline is likely to be a spot of profit taking in my opinion. After all, its shares did rally significantly higher earlier in the week after announcing that it has agreed to a settlement with disgruntled shareholders. I would suggest investors continue to stay clear of the embattled law firm, no matter how cheap it appears.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

In the lead up to Thursday's results, Countplus' shares were down 15% over the week (based on Wednesday's closing price of 68 cents) after management revealed that an ongoing ASIC investigation for member firm Total Financial Solutions Australia Limited ("TFS") is likely to result in increased legal and associated costs for the company.

Even so, Thursday's results demonstrate why the professional services aggregator remains a buy in my books.

Here are the some key takeaways from its results:

• Profit from operations before tax was up 9% at $4.2 million
• Net profit after tax was down 67% to $2.1 million
• Total revenue down 1% to $45 million
• Total operating expenses decreased by 1.7% as a result of tighter cost control
• Interim dividend cut by 50% to 1 cent per share

It's no secret that I've been a long-term supporter of the Countplus business model. Like fellow companies Mortgage Choice Limited (ASX: MOC), Retail Food Group Limited (ASX: RFG) and Mantra Group Ltd (ASX: MTR), Countplus operates a capital light business model which leverages the success of its member firms.

The owner operator model invariably fosters a high performing culture as the business owners (i.e., the partners of member firms) have a self-interest in doing well. Although it's inevitable that sales pressures and KPIs associated with this may sometimes cause adverse consequence, such as the behaviour of a rogue advisor at TFS, on the whole, Countplus stands to benefit from empowering its business owners to prosper.

In my opinion, Thursday's results are a testament to that. Whilst Countplus' headline results looked poor because of the weak performance of its investment in innovative SMSF-administration provider Class Ltd (ASX: CL1), the underlying business remains in robust shape, with underlying NPAT largely flat on the prior period. Although sales revenue declined in its financial planning and property divisions, Countplus' flagship accounting services business reported revenue growth of 1.6%, boding well for long-term earnings stability as its other divisions rebase.

Foolish takeaway

Though investors may be spooked by Countplus axing its dividend in half as a result of Monday's revelations around TFS' ongoing ASIC investigation, the underlying earnings of the business remain stable. Therefore, I'd imagine management will reinstate the dividend once the size of the ASIC audit becomes clear.

In the meantime, investors are compensated with a handy quarterly income stream equating to a trailing 4.95% yield (fully-franked). That's a winning formula in my opinion as the business is adjusting to changing times.

The post Why I think the Countplus Ltd share price is great value today appeared first on The Motley Fool Australia.

What happened?

Management announced that one of its member firms – Total Financial Solutions Australia Limited ("TFS") – is being investigated for breach of ASIC's licence conditions by an advisor.

Friday's announcement revealed that TFS is currently working with its insurers to obtain indemnity to fund damages in the event that any detriment caused by the breach requires rectification. TFS also introduced a new review and remediation program for clients affected by the advisor's advice with the intention of restoring clients' financial position back to the position they would have been in, but for the advice.

Although Friday's announcement reveals a positive step to restore the reputation of TFS, Countplus expects the review to result in increased legal and associated costs of $1.1 million. Further, it expects to record an impairment of $780,000 for its investment in TFS.

What next?

Undoubtedly the impairment and provision as a result of the incident is likely to impact earnings for the half year. As a result, management has opted to slash it's quarterly dividend by half, to 1 cent per share, until the quantum of the detriment of the TFS matter becomes apparent.

This is likely the key driver of Friday's share price plunge, given Countplus has historically been a relatively high yielding stock.

What should you do?

Whilst a halving of the dividend immediately halves Countplus' former 9.9% fully-franked yield (based on Thursday's close of 81 cents and full-year dividends of 8 cents per share), long-term investors should take solace in management's commentary around it's upcoming results.

Pleasingly, management announced that Countplus' unaudited preliminary accounts indicate an increase to profit before tax of 5% to 8% on prior year figures. Importantly, this excludes the financial impact of any fair valuation revaluations of Countplus' investment in Class Ltd (ASX: CL1).

Based on Class' most recent share price of $3.02 per share, Countplus should expect to record a substantial fair value gain to boost profits further.

Accordingly, the stock looks cheap in my opinion.

Foolish takeaway

Although Friday's trading update is cause for concern, Countplus' continuing operations continue to record profit growth.

With investors also set to benefit from an uptick in Countplus' Class investment and be compensated with a handy 4.95% fully-franked yield (assuming dividends are not halted completely), I'm inclined to back the company through this tough time and buy the stock.

The post Why the Countplus Ltd share price plummeted appeared first on The Motley Fool Australia.

Whilst building an empire like Buffet is unlikely to occur for anyone, investors can grow their wealth the simple way by buying stocks going on the cheap.

I believe Countplus Ltd (ASX: CUP) and Freelancer Ltd (ASX: FLN) are two stocks which fit this bill and it just so happens that they're also cheap in dollar terms!

Countplus

Countplus' shares continue to linger below the $1 dollar mark, as weak small and medium enterprises (SME) sector sentiment puts a drag on advisory revenues.

In its 2016 financial year, the company experienced operating revenue decline of 0.9% and an increase to operating expenses of 9.3%. Yet, somehow, it managed to pull off a 41% increase to net profit after tax in the same year.

How is that you ask? The answer – Class Ltd (ASX: CL1).

It's all class

As at 30 June 2016, Countplus held a 5.4% stake in Class – the listed SMSF platform provider. Having the benefit of acquiring this interest in Class at its IPO, Countplus' bottom line enjoyed a whopping $11.4 million fair value gain on its investment in 2016 on the back of Class' stellar success.

Where's the value?

Obviously, Class' growth has now slowed, with Class' shares down 11% this year alone. However, by my calculations, Countplus' interest in Class values its investment at $16.34 million (marked to market). This compares to Countplus' overall market value of $94.8 million.

Accordingly, when a sum-of-the-parts valuation is considered for Countplus, Countplus' price-earnings ratio looks cheaper than when including the investment, meaning investors buying shares at today's prices are receiving the existing business at a discount to its market value. This is something Buffett would pay attention to.

Freelancer

Freelancer is the brainchild of founder and CEO Matt Barrie. It operates an online marketplace allowing individuals to freelance and crowdsource services from one another.

The company listed on the ASX in November 2013 with a bang, opening at $2.50 a share – five times its issue price of 50 cents.

Since then, Freelancer's shares have failed to find direction, whipsawing between 52 cents in November 2014, before rising again to $1.80 in January last year.

During the week, Freelancer's shares entered into a downward trajectory once again, falling below $1 on Friday – the first time in almost two years.

Why the pullback?

The 10% fall in share price since the start of the week coincides with management releasing its fourth quarter results on Tuesday. The company announced it achieved all-time record cash receipts of $51.9 million for the year, up 35% on the prior year. Fourth quarter cash receipts came in at $13 million and paved the way for positive operating cash flow of $4.5 million and an EBITDA profit for the year.

Why buy?

With Freelancer's shares trading under a dollar, $35 million of cash on hand (and no debt to speak of), Freelancer is definitely one stock which looks tempting at today's prices.

Whilst I will be the first to admit that Freelancer's current $450 million-odd market cap makes the company quite expensive on a price-earnings basis, if it's current growth trajectory continues, Freelander's shares could be worth a lot more in the future.

Foolish takeaway

As Buffett can attest – you should never buy a company simply because its share price is low (in absolute dollar values). Even companies which trade in excess of $100 per share, like CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH) are worth buying if their profit expectations justify their current prices.

Accordingly, savvy investors must always remember the number one rule to building a long-term share portfolio is buying stocks that are priced below their fundamental value today.

In my mind, Countplus and Freelancer are two stocks which could fit that bill.

The post 2 stocks I think you can buy for under $1 dollar today appeared first on The Motley Fool Australia.

Brisbane based ERM Power Ltd (ASX: EPW) is an electricity producer and retailer with core operations in Australia and a growing US division. The company has become one of the biggest electricity retailers for large organisations in Australia by focusing on customer service and is now replicating this success with small and medium sized enterprises (SMEs).

In the past year it has declared 12 cents of dividends translating to a dividend yield of 12.8% at current prices. Dividends could fall in future periods as the company's pay-out ratio in 2016 was 153.8% of underlying earnings-per-share (EPS). This appears to be why the stock is trading on such a high yield.

Profits are likely to fall in 2017 as increased competition in Australia is expected to shrink margins more than offsetting growth in the US. However, longer term if ERM can replicate its effective marketing strategy stateside then the company will have a bright future.

Accounting and financial planning group Countplus Ltd (ASX: CUP) currently pays a two cent dividend each quarter equating to a dividend yield of 10.1%. Unlike ERM, Count's dividends are fully franked.

The company is in the process of selling partial equity to the principals that run its practices through its Direct Equity Plan (DEP). This is a smart move as it better aligns the interests of those running subsidiaries with the parent. AUB Group Ltd (ASX: AUB) has successfully executed a similar model in the insurance broking industry.

Count was an early shareholder in Class Ltd (ASX: CL1) and held 5.4% of the company when it listed in December 2015. At 30 June, these shares were valued at $3.30 delivering a $16.3 million fair value gain in 2016. Since then Class shares have climbed to $4.10, but Count has started to sell down its holding.

Aside from gains from the Class investment, the underlying Count business went backwards in 2016. Revenue fell 0.9%, costs rose and by my estimates underlying profitability from the core operations was less than dividends paid and declared during the year.

TV producer and distributor Beyond International Ltd (ASX: BYI) reported total dividends of 10 cents per share in 2016 and so the stock currently trades on an unfranked dividend yield of 9.3%. Like the other two companies in this article, Beyond declared higher dividends than earnings last year suggesting that current yields are unsustainable.

Beyond's core business is TV production and MythBusters is probably its most successful show. The company is also involved in distribution and digital marketing.

The Digital Marketing division swung from a profit to a loss in 2016 and the segment has been a drag on group profits since its formation. I am unsure why Beyond persists with this business as it does not seem to fit with its core competency of making TV programs.

As consumers increasingly choose to watch TV online through streaming services such as Netflix, Beyond's distribution divisions look set to struggle, particularly its DVD business. This technological shift may also provide the company with an opportunity to sell its programs to a greater international audience. Overall, regardless of the distribution medium the quality of Beyond's shows will determine its future success.

Foolish takeaway

These three companies trade on very high yields because their current dividends are unlikely to be sustainable. However, pay-outs to shareholders shouldn't fall that much since all three businesses have low debt levels, generate decent returns on equity and have been profitable for a number of years.

The post Revealed: 3 ASX companies paying 9% dividends appeared first on The Motley Fool Australia.

Investors aren't just looking for yield – but for those companies that can deliver it consistently going forward too. That is pushing up the prices of the largest income stocks to where now their dividend yields are unappealing.

Take Sydney Airport Holdings Ltd (ASX: SYD) as an example. The owner of Sydney Airport has seen its share price soar to $7.34 – up 27% in the past year, and the dividend yield sink to 3.9% and that's unfranked.

Toll road owner and operator Transurban Group (ASX: TCL) is another. The share price is up 22% in the past 12 months, pushing down the dividend yield to 3.93%, and that's only partly franked.

Here are 9 companies currently paying dividend yields of 10% or more…

Source: S&P Global Market Intelligence

The problem with a number of the companies in the table above is that they are unlikely to be able to continue paying out dividends at their current levels because their earnings are declining. That includes the three free-to-air broadcasters Prime Media, Nine Entertainment and Seven West.

IPE Limited is an interesting company, investing in a number of private equity funds and actually paying out 11 cents in dividends and capital returns to shareholders in the 2016 financial year. At the current price of 23 cents – that's the equivalent of an astonishing yield of 48.9%. The company says it expects to continue paying out capital returns in the 2017 financial year too.

PTB Group specialises in aircraft engine services in Brisbane. The share price appears cheap and the company paid a fully franked dividend of 5 cents last financial year. However, investors should note that there is a fair degree of risk involved with PTB – thanks to its $13.7 million of debt – and the company issued $700,000 worth of shares to pay the cash portion of the June 2016 dividend.

One thing to note too is that many of the companies in the table pay fully franked dividends – taking the post-tax yield to more than 14%. Considering the long-term average annual return from the share market is around 10%, owning a basket of big dividend payers could easily see investors thrash the market.

Foolish takeaway

For those investors willing to do further research, the 9 companies listed above could be worthy of adding to a diversified portfolio for their income generating ability.

The post 9 dividend stocks with yields of more than 10% appeared first on The Motley Fool Australia.

Whilst the usual suspects of Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) continue to churn out dividends every six months, it is likely these stalwarts of the Australian market will not experience stellar capital growth in the years ahead.

Furthermore, the downside risk for these companies increases as payout ratios outgrow earnings, meaning many 'reliable dividend stocks' could follow Australian and New Zealand Banking Group's (ASX: ANZ) example and cut dividends.

Accordingly, income-seeking investors may need to venture outside of conventional blue chip shares and look to small cap stocks which offer substantial yield and growth potential.

360 Capital Total Return Fund (ASX: TOT) ("Total Return Fund") and Countplus Ltd (ASX: CUP) are two stocks which I think fit the bill. Here's why.

Total Return Fund

The Total Return Fund listed in April 2015 at an issue price of $1.25 per stapled unit. It is managed by listed investment manager 360 Capital Group Ltd (ASX: TGP). Its mandate is to generate a total return of 12% per annum though selective investment in real estate assets and undervalued REITs.

Fundamentals

For the half year ended 31 December 2015, the Total Return Fund delivered an annualised 14.4% return through distributions totalling 8.32 cents per security and a 4 cents per security gain to its net tangible assets (NTA).

The Total Return Fund continued its solid performance in the second half, announcing an on-market buyback to lift its share price closer to its NTA value of $1.29 (as at 31 December 2015), paying two more quarterly tax-deferred distributions of 1.5 cents per stapled security along the way.

The fund currently forecasts FY16 distributions to be about 8.51 cents per security, placing it on a respectable trailing yield of 7.2% at current prices.

With Australian property prices also growing steadily, the fund has long-term tailwinds.

Countplus

Countplus is an accounting and financial services aggregator with a 5.04% stake (or 5,882,540 shares as at 31 December 2015) in listed cloud based SMSF administration software provider Class Limited (ASX: CL1).

The equity stake in Class provides Countplus' shares with the impetus to grow in value, as the underlying investment in Class swells day-by-day. Accordingly, investors in Countplus benefit from both companies' growth.

The yield

Countplus pays (and has paid since listing) a quarterly dividend of 2 cents per share, providing it with a robust trailing yield of 9.1% before tax at current prices. Importantly, this dividend is fully-franked, meaning the yield surges to almost 13% after tax.

Foolish takeaway

Small cap stocks are inherently risky given their lack of a proven track record. Nonetheless, small cap shares are a great hunting ground for high yielding investments as management generally compensates investors for a company's perceived risk.

Whilst this means the Total Return Fund and Countplus are not as safe as conventional blue chip shares, both companies look poised to provide a reliable income stream to investors with the prospect of capital growth.

The post 2 under-the-radar small caps for income-seeking investors appeared first on The Motley Fool Australia.

The dismal performance of some widely-owned stocks, in particular the banks, has left many investors scratching their heads and wondering how best to gain exposure to income stocks.

While there are advantages to owning the biggest blue chips, they are certainly not a sure thing.

Here are four lesser-followed stocks which not only offer enticing fully franked dividends to beat the low interest rate environment but  also have capital growth potential.

Automotive Holdings Group Ltd (ASX: AHG) is one of Australia's leading retailers of cars via a large network of automotive dealerships. According to forecast data provided by CommSec, dividends are expected to head higher over the next few years.

Based on a dividend forecast of 24.7 cents per share (cps) in financial year (FY) 2017, the stock is trading on a yield of 5.9%.

Collection House Limited (ASX: CLH) operates in the debt collection sector which involves acquiring portfolios of receivables from corporate clients.

While dividends in FY 2016 are expected to be lower than the prior year, growth is forecast to resume in FY 2017. Based on a forecast of 8.8 cps, Collection House is trading on a yield of 8%.

WPP Aunz Ltd (ASX: WPP) owns a wide range of leading advertising agencies and recently undertook a significant merger which has simplified the ownership structure of the group.

WPP, which was previously known as STW Communications is forecast to pay dividends totalling 6.3 cps in 2017. With the share price of $1.04, the forecast yield is 6%.

Countplus Ltd (ASX: CUP) operates a network of accounting and financial advice practices and is one of the rare ASX-listed businesses which pays dividends on a quarterly basis.

For the past eight quarters the group has paid a fully franked dividend of 2 cps. Assuming this payment rate continues, investors could expect to achieve a yield of 8.9% over the next year.

The post Who else wants 4 dividend shares with yields over 5.5%? appeared first on The Motley Fool Australia.

But, emphasising the importance of dividends, the S&P/ASX 200 Total Return (Accumulation) index is up 0.4% in 2016 (a difference of 2.3%).

We've also written a number of times of the importance of dividends, noting a number of studies that have shown that dividend-paying companies are hugely important to long-term returns.

Here are five companies that combined – could just be the ultimate high-yield dividend portfolio.

Telstra Corporation Ltd (ASX: TLS)

How could anyone go past the giant Telco Telstra with its dominance of the Australian mobile and broadband markets? At the current price of $5.57, Telstra is still paying investors a fully franked dividend yield of 5.6%.

Insurance Australia Group Ltd (ASX: IAG)

A dominant Australian and New Zealand insurer, IAG is currently offering shareholders a trailing dividend yield of 5.2%. A well-run company, IAG faces low growth in returns on its investment portfolio, but has consistently maintained disciplined insurance coverage – so much so that the world's greatest investor, Warren Buffett, chose to invest in the company.

Platinum Asset Management Limited (ASX: PTM)

With the share price down from a 52-week high of $8.34 at the current price of $5.56, Platinum offers a dividend yield of 6.5% (fully franked). The fund manager has an outstanding track record over many years and is backed by one of Australia's best investors in Kerr Neilson.

Countplus Limited (ASX: CUP)

Perhaps a controversial choice, Countplus faces challenges in its accounting and wealth management businesses, but should still be able to pay its regular quarterly dividend of 2 cents fully franked. That gives shareholders a dividend yield of around 9.5% fully franked, and a cheap price to offset some of the risks.

SPDR S&P/ASX 200 Fund (ASX: STW)

Another controversial choice, the SPDR 200 Fund tracks the performance of the S&P/ASX 200, and means that it is heavily weighted towards Australia's largest companies, including the 2 big miners, the big four banks and the big supermarket operators. However, at the current price of $49.00, the fund is yielding 5.1%, and could offer an attractive price to enter the share market, particularly given the 7.3% fall in the Top 20 stocks year-to-date.

Owning dividend shares could mean the difference between enjoying a wonderful retirement, and existing on the government pension. I know which one I'd prefer.

The post Is this the ultimate high yield dividend portfolio? appeared first on The Motley Fool Australia.

The following 3 companies are flying under the radar of the professionals and offer an opportunity for retail investors to pick up shares paying consistent, solid dividends.

Lifehealthcare Group Ltd (ASX: LHC)

Medical device distributor Lifehealthcare is forecasting revenues of ~$114.5 million for the 2016 financial year – and similar earnings margins as previous years. Assuming a lower margin (to be conservative) suggests Lifehealthcare could report a net profit of around $8 million – placing it on a P/E of just over 9x. The company's trailing dividend yield is 7.4% unfranked – although it could fall slightly this year. This is one company to hold for the long term given the strong tailwinds.

Industrea REIT (ASX: IDR)

An industrial property trust I've highlighted on a number of occasions previously (including here in 2014) is still being missed by the professionals. While investors are unlikely to get much capital growth – the share price has hardly budged in the past 2 years – shares have delivered a 27% return including dividends reinvested since July 2014. Industrea is currently yielding 7.3% and expects to pay a higher distribution in 2017.

Countplus Limited (ASX: CUP)

The financial services company offers wealth management, financial planning and accounting services to its clients. At the current share price of 74 cents, Countplus has a dividend yield of 10.8% – thanks to its fully franked quarterly 2 cents dividends. That's a grossed up rate of 15%!

When the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) only managed low single digit returns in the 2016 financial year – holding Countplus for the dividend alone is one way to thrash the index. The bonus for investors is that Countplus owns 5.4% of cloud SMSF software provider Class Ltd (ASX: CL1).

Foolish takeaway

Retail investors can find quality, high dividend paying stocks if they are willing to look beyond the usual suspects in the top 20. Not only do they pay lovely fully franked dividends, but there's the potential for strong capital gains too.

The post 3 more big dividend stocks for your portfolio appeared first on The Motley Fool Australia.

A share price under $5 bucks for a quality company paying huge sustainable dividends, that's what.

With dividend yields of 11.8%, 8.5% and 6.8% respectively, the following 3 shares could be a nice fit for the income portion of your portfolio. The bonus is that with share prices under $5.00, investors can also buy a reasonable amount of shares too, and these 3 companies also trade at cheap valuations. What more could an investor want?

Without further ado, here they are…

Countplus Limited (ASX: CUP) – price 68 cents

The financial services company offers financial planning, wealth advice, broking and accounting services to its customers, and also holds 5.4% of the shares in Class Limited (ASX: CL1) which now makes up ~24% of the value of the company. Countplus currently pays a fully franked dividend yield of 11.8% (4 quarterly payments of 2 cents each) at the current price and expects to match last year's net profit and earnings per share in FY2016. That puts Countplus on a P/E ratio of around 7.3x.

Tamawood Limited (ASX: TWD) – price $2.93

We've mentioned home designer and builder Tamawood several times over the past few years as a quality share paying decent dividend yields (averaging 9.7% over the past decade) and this year is no exception. The company has committed to paying a 25 cent fully franked dividend this financial year (FY16) – which, at the current price of $2.93, is a whopping dividend yield of 8.5%, and a P/E ratio of around 11.7x. For a more in-depth discussion of the company's operations, this article should help.

Contango Microcap Limited (ASX: CTN) – price 93 cents

With a share price of 93 cents, listed investment company Contango Microcap is trading at a big discount to the net tangible assets per share, which at the end of April stood at $1.14 before tax. That's the equivalent of buying a dollar worth of assets for just 81 cents. The Contango portfolio also contains 71 small to medium cap securities, giving investors instant wide diversification at discounted prices. The cherry on top is the company's trailing 6.8% partly-franked dividend yield with 3.7 cents expected to be paid as a final dividend in September/October 2016.

The post 3 dirt cheap dividend stocks to buy under $5 appeared first on The Motley Fool Australia.

Here are three stocks I believe would make a solid income-generating portfolio, whilst providing a good mix of speculative, growth and core investments:

1. Countplus Ltd (ASX: CUP)

On Monday, Countplus' management provided a market update in response to its recent share price weakness. Management reiterated profit guidance in announcing its 2016 full year net profit should "not be materially different from last year's results, if not marginally higher."

The update was driven by a material increase to Countplus' holding value of its investment in Class Limited (ASX: CL1). The cloud-based software provider has surged strongly since listing, valuing Countplus' 5.04% stake in Class at $15.2 million (or 20% of Countplus' entire market value). This is likely to increase if Class continues its astronomical growth.

Although Countplus faces its own challenges in its non-investment business, its dividend yield is akin to that of a speculative stock. As part of its market update, management reiterated full year dividend guidance of a fully-franked 8 cents per share, implying a yield of 12.3% (plus franking credits) at current prices.

2. Retail Food Group Ltd (ASX: RFG)

Retail Food Group is a bit of a long-time favourite of mine; the aggregator of cafés and pizza outlets has grown from strength-to-strength, ticking all the right boxes along the way.

In its latest results, Retail Food Group reported an increase to underlying net profit after tax of 27.1% and announced its 19^th consecutive dividend increase.

With international expansion plans already in place, this trend of growing profits (and dividends) should hopefully continue well into the future. Although the company trades on a 4.6% fully-franked yield today, its dividend should grow over time, making it an excellent growth stock for the income-focused investor.

3. Telstra Corporation Limited (ASX: TLS)

It is hard to discuss yield stocks and not make mention of Telstra; the telecommunications giant boasts a reputation as the gold standard in reliable income, paying its coveted fully-franked dividend every single year since listing.

Telstra's last two dividends were fully-franked at 15.5 cents each, implying a very respectable gross yield of 7.9% at current prices.

Importantly, new chief executive officer Andrew Penn has indicated that he plans to use proceeds from Telstra's sale of its Autohome stake to fund a capital management program of at least $1.5 billion. Whilst specifics on the capital management program are unclear at this stage, market rumours suggest management will pay either a special dividend (subject to available franking credits), or announce a buy-back of some sort.

Both options are likely to be shareholder friendly, making Telstra a sound investment as part of your core income portfolio.

Foolish takeaway

Investors should not purchase a particular company solely for its income, given dividends are not immune to cuts. Australia and New Zealand Banking Corporation (ASX: ANZ), BHP Billiton Limited (ASX: BHP) and Woolworths Limited (ASX: WOW) are but three (of many) stocks which can attest to that.

Nevertheless, when constructing a portfolio for generating stable income, investors should look to purchase a mix of stocks that provide a good blend of growth and stability. I believe Countplus, Retail Food Group and Telstra Corporation can do just that.

The post Here's your 3 share dividend growth portfolio appeared first on The Motley Fool Australia.

In light of the update, I think it might be a good time to reconsider purchasing shares in Countplus.

Trading update

Countplus' management provided a market update in light of recent weakness in Countplus' share price. Prior to the update, Countplus' shares had slumped over 40% over the last six months, arguably due to the market writing off its ability to maintain earnings.

Consequently, management reiterated full year net profit guidance yesterday, stating it should "not be materially different from last year's results, if not marginally higher." The announcement comes at a time where the likes of Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) announce slowing growth within the financial services sector, indicating a robust performance from the professional and financial services aggregator.

Dividend yield

Countplus' management further reiterated that it should continue paying a 2 cent fully-franked dividend per quarter. Provided this is maintained going forward, Countplus currently trades on a gross trailing yield of 19.4% (inclusive of franking credits), making for a solid income stream.

Future growth

Countplus' future growth should come organically from new acquisitions within its existing aggregator business. Whilst industry headwinds may mean growth will stagnate, I expect Countplus being able to maintain market share due to its 'sticky' business model.

Another avenue for growth is Countplus' investment in Class Limited.

Class investment

Countplus currently owns 5.04% of Class (or 5,882,540 shares as at 31 December 2015), valuing the stake at approximately $15.2 million based on yesterday's closing price of $2.58. As indicated by management, the growing market value of Class means Countplus' stake now accounts for almost 20% of Countplus' overall market value. This implies that at current prices, Mr market values Countplus' existing business at a significant discount to last year (all else being equal).

As at 31 March 2016, Class Limited had a total of 100,368 billable portfolios roughly accounting for 17.5% of total SMSFs in Australia. With the entire Countplus Group adopting Class Super as its preferred SMSF software and companies like Deloitte, Macquarie Group Ltd (ASX: MQG) and National Australia Bank Limited (ASX: NAB) using some of its software services, Class Limited should continue to grow solidly into the future, auguring well for Countplus' investment.

Foolish takeaway

Countplus' aggregator business is on a stable footing, despite intense competition in the small and medium accounting sector. Nevertheless, Countplus' advantage lies in its innovation, with its investment in Class Limited providing a kicker to earnings.

In spite of industry-wide headwinds, I believe Countplus' juicy dividend yield and tailwinds from its Class Limited investment makes it a good time to purchase shares in this professional services firm at current prices.

The post Why the Countplus Ltd share price is soaring this week appeared first on The Motley Fool Australia.

Class investment

Class Limited listed on the stock exchange at $1 per share on 16 December last year. It was an IPO 10 years in the making and was co-founded by Barry Lambert. Lambert is the current Chairman of Class Limited and has a proven performance record with former ventures Count Limited and Countplus (in both of which he was also chariman).

About Class Limited

Class Limited is a disruptor of accounting services, being the leading cloud-based SMSF administration software provider in Australia. Class Limited owns Class Super, a platform which allows accountants, administrators and advisors to easily manage and audit SMSFs. This is a sector with very little competition with only two other private providers currently operating in the cloud-based space.

As at 31 December 2015, Class Limited had a total of 96,637 billable portfolios roughly accounting for 16.7% of total SMSFs in Australia. With the entire Countplus Group adopting Class Super as its preferred SMSF software and companies like Deloitte, Macquarie Group Ltd (ASX: MQG) National Australia Bank Limited (ASX: NAB) and Westpac Banking Corporation Limited (ASX: WBC) using some of its software services, Class Limited should continue to grow solidly into the future.

Countplus stake

Countplus is the largest institutional shareholder in Class Limited and is the reason why Countplus should benefit from Class Limited's success. The group currently owns 5.04% of the company (or 5,882,540 shares), valuing the stake at $11.24 million based on yesterday's closing price of $1.91. Notably, Countplus' investment in Class Limited was made before it listed. This means its annual report issued in September last year, which valued the investment in Class Limited at $3.64 million, was not "marked-to-market". Accordingly, when Countplus reports later this month, it should reveal a pleasant surprise for long-term investors with a circa $7.5 million revaluation in its investments.

Existing business

The kicker for Countplus is that investors are effectively getting the existing business for a discount on last year's value because of its successful investment in Class Limited. This means its share price should have increased as Class Limited grew in value (all else being equal), but instead, has gone backwards since Class Limited listed.

2015 earnings

In 2015, Countplus reported earnings of $9.93 million, which were materially down from 2014 due to the cessation of loyalty payments from majority shareholder, Commonwealth Bank of Australia (ASX: CBA). Earnings per share came in at 9 cents and the company paid a fully-franked dividend of 8 cents.

Steady outlook

At its Annual General Meeting in November, management provided a market update for 2016 indicating that revenue from accounting and tax services is down 1% year-on-year. However, strong growth in its property services division – Pacific East Coast – and continued success in its financial planning firms sees management expecting full year earnings to be in-line with 2015 results, implying steady momentum across the business.

Dividend yield

Additionally, Countplus has a proud history of paying a quarterly, fully-franked dividend. Even if earnings remain flat at 9 cents per share as indicated by management, Countplus should be able to maintain its annual 8 cents dividend (2 cents per quarter), implying a gross yield of 13.7%.

Foolish takeaway

Countplus' aggregator business is very solid on its own. However, with its large investment in Class Limited yet to be marked-to-market, it is likely that investors will receive a positive surprise when it reports this earnings season which could see a re-rating of its shares.

The post Will Countplus Ltd surprise to the upside this earnings season? appeared first on The Motley Fool Australia.