In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here at The Fool, our analysts do not recommend buying ASX shares simply just to get the next dividend payment.

Our market experts say the decision to buy should be more thoughtful than that, and based on fundamental analysis.

But if you already intend to buy any of these ASX shares, you might like to consider the best timing for you.

For example, you could buy before the ex-dividend date and receive entitlement to the next dividend payment.

Or you might prefer to wait until the ex-dividend date itself, when the share price usually falls, to snap up your stock.

Here are some ex-dividend dates next week

The post 20 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

360 Capital Group Ltd (ASX: TGP) and 360 Capital REIT (ASX: TOT) – together, 360 Capital ­– posed its most recent takeover bid of $1.72 in cash per share in mid-December.

It previously posed bids of $1.65 and $1.70, discounting a 4.5 cent dividend paid to Irongate shareholders in early December.

The market appears disappointed by today's rejection. At the time of writing, the Irongate share price has dropped 1.46% to trade at $1.69.

Let's take a look at what's driving the real estate investment trust's (REIT) share price down today.

Irongate share price slips on another rejected takeover bid

The Irongate share price is slumping after the trust rejected yet another takeover bid, stating it didn't "reflect [its] underlying value".

It said the bid didn't appreciate its office and industrial real estate portfolio, its portfolio's value-add upside potential, and the potential of its third-party funds management business.

Finally, the REIT commented if it believed a proposal did reflect maximum value for its shareholders, it would consider it.

Assumedly, that statement lands the ball squarely back in 360 Capital's court.

Each bid so far has been rejected for the same reason. Additionally, according to Irongate, each bid didn't come with any changed conditions.

Irongate didn't announce it had received the second bid to the market as it was immediately rejected. The wannabe acquiree criticised that decision at the time. And perhaps investors are responding now, considering the direction of Irongate shares today. 

In response to its second rejection, 360 Capital commented:

360 Capital is disappointed the IAP board has again chosen not to engage with 360 Capital despite the Improved Indicative Proposal representing an attractive premium across a number of valuation metrics…

On top of that, the company's managing director Tony Pitt noted:

360 Capital remains committed to working with the board and management of Irongate Group for a period of time, but will remain disciplined in its investment approach to assets, particularly given current uncertainties in this rising interest rate environment.

Since 360 Capital pitched its first bid, the Irongate share price has gained 12%. It is also currently nearly 5% higher than it was this time last month.

The post Irongate (ASX:IAP) share price slides as takeover rejected again appeared first on The Motley Fool Australia.

Just because a business is smaller doesn't mean that it can't pay a large dividend. The yield is dictated by the payout ratio and the valuation.

Plenty of the businesses in the S&P/ASX 200 Index (ASX: XJO) were smaller companies on the ASX at some point. Starting from a smaller base may give them a longer growth runway with their earnings as well.

Here are two small ASX dividend shares with large yields:

360 Capital REIT (ASX: TOT)

This is a diversified real estate investment trust (REIT). It's one of the positions in the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) financial services portfolio.

It has the ability to invest across most assets in the real estate world. At the moment it has two large strategic holdings in Australian REITs. One holding is 9.2% of Irongate Group (ASX: IAP). Another holding is Peet Limited (ASX: PPC).

Peet is a residential developer that delivers master planned communities, medium density housing and apartments.

Irongate is a diversified real estate investors with real estate assets and a third-party funds management platform. Irongate owns office and industrial assets across Australia and New Zealand.

Another of the small ASX dividend share's recent investments include buying half of PMG Group, a New Zealand based diversified commercial real estate funds management business. At the time of the acquisition, PMG managed five unlisted funds, three single-property syndicates, with 42 properties and NZ$665.7 million of funds under management (FUM).

360 Capital says PMG gives the business an investment in a growing funds management platform with a long track record and diversification through exposure to the New Zealand real estate market. It provides fee income from funds management and underwriting activities.

Its longer-term objective is owning direct assets and value-add opportunities on the balance sheet. Initially, it's getting exposure to this through strategic investments in real estate funds management platforms.

The small ASX dividend share's annual distribution for FY21 is 6 cents per share. That trailing payment reflects a yield of 6.25%.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is another business in the Soul Patts financial services portfolio.

It's a fund manager with a diverse array of funds that it manages. Pengana has strategies relating to international shares, ASX shares, private equity, property and ethical shares.

At 30 June 2021, its FUM had grown to almost $4 billion (the exact number was $3.974 billion). At 31 December 2020, the FUM was $3.6 billion. So the FUM had grown by 10.6% over the prior six months. FUM is an important part of generating revenue for Pengana in the form of management fees.

In the six months to 30 June 2021, the small ASX dividend share generated gross performance fees of $17.3 million. That brought total gross performance fees earned for FY21 to $27.6 million. However, those numbers are before payments to the fund manager teams and bonuses.

The FY21 half-year result saw FUM increase by 15% in the first six months of the financial year. This helped underlying profit before tax increase by 17.1% to $9.2 million.

Pengana declared an interim dividend of 5 cents per share, an increase of 25%. The current trailing dividend is 9 cents per share, meaning it has a trailing grossed-up dividend yield of 7.6%.

The post 2 small ASX shares with big dividend yields appeared first on The Motley Fool Australia.

Dividends are not guaranteed, they are decided by boards of businesses and funded by profits.

These three ASX shares have high dividend yields as a result of a lower price/earnings ratio valuation and/or a higher dividend payout ratio:

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a funds management business that operates a variety of strategies for investors including Australian shares, global shares, private equity and property.

In the six months to 31 December 2020, Pengana's funds under management (FUM) increased by 15% to $3.586 billion. In the latest monthly update to 31 May 2021, FUM had increased further to $3.790 billion.

Pengana said that the FY21 half-year result saw "strong investment performance, with all strategies outperforming respective benchmarks for the period" and "significant improvement in net flows".

The ASX share's board decided to increase the interim dividend by 25% to 5 cents per share. That brought the trailing dividend to 9 cents per share.

At the current Pengana share price of $1.59, that means the trailing grossed-up dividend yield is 8.1%.

Nick Scali Limited (ASX: NCK)

Nick Scali is a large ASX-listed furniture business with showrooms across the country.

It says that its business model generates a leading retail industry operating cashflow margin, achieving average earnings before interest, tax, depreciation and amortisation (EBITDA) to cashflow conversion of over 100% in the past five years.

Nick Scali explains that its cashflow profile allows the company to maintain a high dividend payout ratio which has averaged 80% through time.

The ASX share expecting to grow its net profit after tax in FY21 by between 85% to 90%.

In the FY21 half-year result it grew its interim dividend by 60% to $0.40 per share. That brought the trailing 12-month grossed-up dividend yield to 8.3%.

360 Capital REIT (ASX: TOT)

This is a real estate investment trust (REIT) that looks to invest across an array of different property investment opportunities. Investments this financial year include PMG Funds, Peet Limited (ASX: PPC) and Irongate Group (ASX: IAP).

The business said its longer-term objective is owning direct assets and value-add opportunities on its balance sheet.

The 50% investment into PMG Group, a New Zealand diversified commercial real estate funds management business, is to provide the ASX share with an investment in a growing funds management platform with a long track record and diversification through exposure to the New Zealand real estate market. It provides earnings from fee income from funds management and underwriting activities.

The ASX share forecast a FY21 distribution of 6 cents per security, which currently translates into a distribution yield of 6.1%.

The post 3 ASX shares with BIG dividend yields appeared first on The Motley Fool Australia.

The below businesses have yields that are higher than the market average:

360 Capital REIT (ASX: TOT)

360 Capital is a real estate investment trust (REIT) which invests in a wide range of property-related assets.

It has invested in a few different ASX shares in recent times. Peet Limited (ASX: PPC) is a residential developer that delivers master planned communities, medium density housing and apartments. Another investment was Irongate Group (ASX: IAP), which is a diversified real estate investor and it also has a third-party funds management platform.

360 Capital has also bought half of PMG Group, a New Zealand commercial real estate funds management business.

The forecast distribution guidance for FY21 is 6 cents per security, which translates to a forecast yield of 6.25%.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a fund manager that runs a number of different strategies including ASX shares, international shares and private equity. The company said that it's looking to diversify over time by adding new strategies.

In the six months to December 2020, the ASX share said that funds under management (FUM) increased by 15% thanks to both investment performance and net inflows. All of its strategies outperformed their respective benchmarks for the period. The fund manager said that it's growing FUM on higher margin products.

The Pengana Property Securities Fund was one of the latest products to be launched.

In the half-year result, Pengana grew its interim dividend by 25% to 5 cents per share. That brought the trailing annual payment to 9 cents per share, translating to a grossed-up dividend yield of 8%.

In the latest monthly FUM update, Pengana said its FUM had increased from $3.7 billion to $3.8 billion.

Pacific Current Group Ltd (ASX: PAC)

Pacific is an asset management ASX share that aims to partner with exceptional investment managers. It combines capital (offered through different economic structures) with strategic business development to help those investment managers grow.

Some of its investments include GQG, ROC, Carlisle, Proterra and Victory Park. Those were the ones that saw elevated inflows in the three months to 31 March 2021. It also acquired a stake in Astarte Capital Partners. In that same quarter, it experienced 8.9% organic FUM growth.

Over the last 12 months, Pacific Current has paid an annual dividend of $0.35 per share. That equates to a grossed-up dividend yield of 8.9%.

The post 3 small ASX shares with big dividend yields appeared first on The Motley Fool Australia.

A dividend yield isn't based on the size of the business, but it's about the dividend payout ratio and the valuation of the company.

These two businesses have relatively small market capitalisations, but higher-than-normal dividend yields:

360 Capital REIT (ASX: TOT)

This is a real estate investment trust (REIT) that's operated by 360 Capital Group Ltd (ASX: TGP).

360 Capital REIT invests in a wide range of real estate-based investment opportunities. Before COVID-19 it had been focusing on making real estate loans.

However, at the moment it is mostly investing in other real estate businesses. For example, it has invested in Peet Limited (ASX: PPC) and Irongate Group (ASX: IAP). 360 Capital REIT has also entered into a 50% equity partnership with PMG Group, a New Zealand based diversified commercial real estate funds management business.

PMG manages five unlisted funds, three single-property syndicates, with 42 properties and NZ$665.7 million of funds under management (FUM).

360 Capital said this partnership provides it with an investment in a growing funds management platform with a long track record and diversification through exposure to the New Zealand real estate market. It gives the company the opportunity to earn fee income from funds management and underwriting activities.

The ASX dividend share has a forecast FY21 distribution guidance of 6 cents per security, this translates into a distribution yield of 6.7%.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a company that invests in fund managers across the globe and helps them grow with expertise and capital.

It's invested in a number of different managers and they are steadily growing their funds under management (FUM), which is growing management fees.

In the recent FY21 half-year result, Pacific Current Managing Director CEO and chief investment officer Mr Paul Greenwood explained the benefit of this:

As you look at these results you will see that more of PAC's earnings are coming from management fees, which are more repeatable than performance fees or commission revenues. This means that the organic profitability of the business continues to grow nicely, and we expect this trend to continue.

Despite the strengthening of the Australian dollar against the US dollar, management fee revenue grew 10% and operating expenses fell 24%.

Pacific Current also recently invested into Astarte Capital Partners which is based in London and it's focused on private markets real asset strategies. The ASX dividend share said this investment has the potential to become one of its larger investments in the future. It will receive approximately 40% of net income from this investment.

It's going to continue to focus on finding private capital asset management outfits with unique business models operating within niche market segments.

The company is expecting fundraising to accelerate through the rest of the 2021 calendar year and into 2022. It's also expecting to make at least one more investment in FY21.

It has a trailing grossed-up dividend yield of 9.1% at the current Pacific share price.

The post 2 secret ASX dividend shares with large yields appeared first on The Motley Fool Australia.

Businesses that are small are sometimes priced at a lower earnings multiple than if they were large, despite being earlier on in their growth journey. A lower earnings multiple/share price boosts the dividend yield for investors.

Here are two small ASX shares that just reported big dividends:

360 Capital REIT (ASX: TOT)

This business is a real estate investment trust (REIT) that's operated by 360 Capital Group Ltd (ASX: TGP). 360 Capital REIT just reported its FY21 half-year result.

It was previously generating earnings by making real estate loans, but all direct real estate loans ($42.4 million) have now repaid as a result of active management.

360 Capital REIT revealed that it has sold a further six apartments in Gladesville, 19 of 23 apartments have now been sold at an average premium of 21.3% to the purchase price.

The small ASX dividend share has made a number of equity investments into real estate related assets including Peet Limited (ASX: PEET), Irongate Group (ASX: IAP) and PMG in New Zealand. The PMG investment may find New Zealand investments that can be pursued.

As a result of COVID-19, the REIT ceased its lending activities and shifted management's focus to converting outstanding loan positions and assets to cash. Management decided to be conservative with the cash to preserve capital, which impacted earnings.

It said that its operating earnings per share (EPS) was down 76% to 1.1 cents.

After the end of the reporting period, the majority of the business' available capital had been deployed into investments that provide recurring income in line with 360 Capital REIT's strategy and objectives.

The small ASX dividend share has forecast a FY21 distribution guidance of 6 cents per security, which translates to a yield of 6.9% at the current 360 Capital REIT share price.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a fund manager that just reported its funds under management (FUM) increased by 15% in the six months to 31 December 2020.

It reported that underlying profit before tax grew 17.1% to $9.2 million and normalised EPS grew 13% to 5.96 cents per share.

The small ASX dividend share said that there was a significant improvement in net flows. Pengana also said that there was also strong investment performance, with all strategies outperforming their respective benchmarks for the period.

As part of the result release, management said that it still has significant further capacity in its various international equity strategies and a major growth opportunity in the Pengana Private Equity Trust (ASX: PE1). It also said it has an opportunity to diversify further over time by adding new strategies.

In terms of the dividend, the board of Pengana decided to declare a fully franked interim dividend of 5 cents per share, which was an increase of 25%.

At the current Pengana share price, that means that the grossed-up dividend yield is now 6.8%.

The post 2 small ASX shares that just reported big dividends appeared first on The Motley Fool Australia.

Businesses that are smaller may have the potential to grow more because they haven't reached their growth ceiling yet. However, some of them may be able to deliver higher levels of income because they are paying high dividend yields.

Here are two examples:

360 Capital REIT (ASX: TOT)

This real estate investment trust (REIT) invests across the entire real estate investment world, taking advantage of varying market conditions in order to find the best opportunities. It's managed by fund manager 360 Capital Group Ltd (ASX: TGP).

The business has been busy with acquisitions and sales in recent months.

In the three months to 30 September 2020, it continued its investment strategy of buying equity stakes in real estate assets and businesses, whilst exiting the debt investments.

It recently settled on the sale of its non-core Penrith shopping centre in line with book value. A few months ago it announced that it had settled seven contracts for its Gladesville investment averaging at a 20.3% premium to the purchase price.

Over the last month the small ASX dividend share has bought a 9.18% interest in Irongate Group (ASX: IAP), a diversified REIT, for approximately $78.6 million.

It has also announced a 50% interest in PMG Funds, a New Zealand based real estate fund manager with over NZ$665 million of real estate funds under management (FUM).

360 Capital REIT said that the partnership gives it exposure to a growing funds management platform across New Zealand. It will allow 360 Capital REIT to invest in direct commercial and industrial real estate transactions in New Zealand.

Management said that the REIT remains well capitalised with no gearing and a focus on growing its real estate strategy.

360 Capital REIT is currently paying a quarterly distribution of 1.5 cents, which translates to a distribution yield of just under 7% at the current share price.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a fund manager that runs a variety of strategies including Australian share strategies, global shares and global private equity.

In the latest monthly update, Pengana said that its funds under management (FUM) was just under $3.6 billion.

The small ASX dividend share believes that there is significant further capacity in various international equity strategies. Pengana also thinks there is a major growth opportunity in the Pengana Private Equity Trust. There's also the potential to diversify further over time by adding new strategies, according to management.

Pengana said that one of the key attractions about its business was that it has more than 20% of its FUM in listed vehicles. It says that it has good fee margins and diversified performance fees. It also says that profitability is highly leveraged to growth in FUM. It largely has a fixed operating cost base.

The company believes that a key growth opportunity is the USA expansion platform with its acquisition of a controlling stake in Lizard International.

At the current Pengana share price, it has a grossed-up dividend yield of 6.2%.

The post 2 small ASX dividend shares with big yields appeared first on The Motley Fool Australia.

Here are three ideas to consider:

Brickworks Limited (ASX: BKW)

Brickworks is an ASX dividend share with one of the longest dividend records on the ASX. It hasn't cut its dividend in over 40 years.

The business may be best known for its Australian building products divisions, but it's actually the other assets that entirely support the Brickworks dividend.

Brickworks has a 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). Brickworks supplies the land, which is excess to requirements, and then Goodman provides the necessary infrastructure works and the contacts with quality potential tenants.

One example of this arrangement working is the gigantic high-tech warehouse that is currently being built for Amazon in Sydney. Amazon is one of Goodman's largest global tenants. Another big warehouse is also being built for Coles Group Ltd (ASX: COL). After those two warehouses are built, it'll increase the gross assets of the trust by around $900 million to $3 billion. It'll also grow the rental profit distributions to Brickworks by at least 25%.

The other asset supporting the Brickworks dividend is its approximate 40% holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts is an ASX dividend share itself, it owns a diversified portfolio with investments across telecommunications, building products, resources, financial services, listed investment companies (LICs) and agriculture.

At the current Brickworks share price it has a grossed-up dividend yield of 4.25%.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that has long rental contracts with high quality tenants. It's rated as a buy by the broker Citi.

At 31 December 2020, the ASX dividend share had a weighted average lease expiry (WALE) of 14.1 years, which was slightly up from 14 years at 30 June 2020.

It has tenants like Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP, Woolworths Group Ltd (ASX: WOW), Inghams Group Ltd (ASX: ING), Coles and David Jones.

Those tenants are spread across property classes like telecommunication exchanges, service stations, agri-logistics, offices and long WALE retail.

In the FY21 half-year result which was just released, operating earnings per share (EPS) and the distribution per security grew by 3.6% to 14.5% cents.

The net tangible assets (NTA) increased by 5.1% to $4.70. It had balance sheet gearing of 29%, with look through gearing of 39.3%.

At the current Charter Hall Long WALE REIT share price, it has a FY21 distribution of at least 6.1% based on management guidance of operating EPS.

360 Capital REIT (ASX: TOT)

This is another REIT, it's managed by 360 Capital Group Ltd (ASX: TGP).

The REIT ASX dividend share invests across the entire real estate industry to take advantage of varying market conditions in order to maximise returns for investors.

In a recent change of strategy, 360 Capital REIT is now focusing on equity investing in real estate assets and businesses, and exiting its debt investments.

One example of recent investment includes the $78.6 million investment into Irongate Group (ASX: IAP). 360 Capital REIT also announced it had agreed terms to become a major equity partner in an unlisted real estate funds management platform with settlement expected this month.

Based on the recurring nature of the income from the above investments, the REIT decided to provide guidance of 6 cents per unit for FY21. At the current 360 Capital REIT share price, that equates to a distribution yield of 6.8%.

The post 3 ASX dividend shares with higher yields appeared first on The Motley Fool Australia.

Here are two little-known businesses that have income yields bigger than the market average:

360 Capital REIT (ASX: TOT)

According to the ASX, 360 Capital REIT has a market capitalisation of $121 million.

This is a real estate investment trust (REIT) which invests across the entire real estate industry to take advantage of varying market conditions in order to maximise returns for investors.

It is managed by 360 Capital Group Ltd (ASX: TGP), which is an investment and funds management group, focused on strategic and active investment management of alternative assets.

360 Capital REIT recently changed its strategy to focus on equity investing in real estate assets and businesses and exiting its debt investments.

The ASX dividend share recently completed the sale of its Penrith shopping centre asset, in line with the book value.

A recent investment that the business made was acquiring a 9.18% stake in Irongate Group (ASX: IAP) for approximately $78.6 million. Irongate is an ASX-listed diversified REIT with approximately $1.1 billion of assets on the balance sheet and a third-party funds management platform. It also announced it had agreed terms to become a major equity partner in an unlisted real estate funds management platform with settlement expected this month.

The ASX dividend share explained that based on the recurring nature of the income from these investments, the REIT decided to provide guidance of 6 cents per unit for FY21. At the current 360 Capital REIT share price, it has a FY21 distribution yield of 6.8%.

At the FY20 result, which was released almost six months ago, the business said that it had net tangible assets (NTA) per share of $1.13. The current 360 Capital REIT share price is trading at a 22% discount to its NTA.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a fund manager that predominately provides investment services to retail investors. According to the ASX, Pengana has a market capitalisation of $181 million. 

The last funds under management (FUM) update showed that the FUM had grown to $3.6 billion, up from $3.5 billion in the previous monthly update.

Pengana has a number of different investment strategies for investors to utilise. It has Australian multi-caps, Australian small caps, global multi-caps, global small caps and global private equity.

The ASX dividend share believes that it has a long-term and loyal customer base of financial advisors, retail investors and high net worth individuals with more than 20% in listed vehicles.

Listed investments have a stable pool of funds which allows it to invest for the long-term and provides consistent management fees.

One of the ways that Pengana plans to grow is overseas expansion. It bought two thirds of Lizard Investors in the US, Pengana plans to help it increase its FUM whilst also transforming Lizard into a platform for managing other strategies.

Pengana management think that eventually Lizard can grow to become the same size as the Australian business.

At the current Pengana share price, it has a grossed-up dividend yield of 6.3%.

The post 2 secret ASX dividend shares with large yields appeared first on The Motley Fool Australia.

Small caps are businesses that are smaller than many well-known companies. The definition of a small cap normally means having a market capitalisation of less than $1 billion.

Here are four examples of businesses that are relatively small, but have a large dividend yield:

Pacific Current Group Ltd (ASX: PAC)

This is a business that takes strategic stakes in fund managers and tries to help them grow with the expertise it has gained.

In FY20 the small cap ASX share increased its dividend by 40% to $0.35 per share, which was supported by an increase of underlying earnings per share (EPS) growth of 18% to $0.44 per share. That means at the current Pacific Current share price it has a trailing grossed-up dividend yield of 8%.

Its funds under management (FUM), which is a driver of earnings, grew by 14% to $106.4 billion in the first quarter of FY21 for the three months to 30 September 2020.

360 Capital REIT (ASX: TOT)

This is a fund of diversified assets across real estate equity, debt and real estate based operating businesses with a history of quarterly distributions. It has access to real estate based investment opportunities available through its manager 360 Capital Group Ltd (ASX: TGP).

360 Capital REIT said it has commenced deploying its cash reserves again after holding cash during the COVID-19 period. 

The small cap ASX share had a net tangible asset backing of $1.13 per security at 30 June 2020, so the current 360 Capital REIT share price is at a 24% discount to this value. It is currently undertaking an on-market buyback.

For the first quarter of FY21 it declared a 1.5 cents per unit distribution, which equates to a yield of around 7% at the current share price.

It said in a recent update that it is well positioned to take advantage of market volatility arising from a tapering of government stimulus and ending of the moratorium on interest payments.

Tassal Group Limited (ASX: TGR)

Tassal is the biggest fish business in Australia. It has large salmon farming operations and it also has a growing prawn division after some acquisitions.

In FY20 the small cap ASX share grew operating net profit by 13.4% to $64.2 million and operating earnings before interest and tax (EBIT) went up 9.8% to $99.8 million. That supported the dividend being maintained during the COVID-19 period. In FY20 it paid a dividend of 18 cents per share. At the current Tassal share price, that equates to a partially franked dividend yield of around 5%.

The fish business recently announced the acquisition of Billy Creek, a property with around 1,300 hectares that is next to its Proserpine prawn farm. The combination of these two properties provides the opportunities for an additional (approximately) 350 hectares of ponds, supporting a total of around 800 hectares of ponds across the wider precinct. The proximity to the Bruce Highway provides ready power availability as well as existing road infrastructure.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the largest furniture businesses on the ASX, but it's still a small cap ASX share.

In FY20 it increased its final dividend by 12.5%, bringing the full year dividend to 47.5 cents per share. At the current Nick Scali share price that represents a grossed-up dividend yield of 7.7%.

Its net profit was flat in the last financial year. However, it's expecting higher growth in the first half of FY21. Total sales orders for the first three months of FY21 have been up 45% on the previous year. Excluding Melbourne and Auckland, comparable store sales orders grew by 59% in the first quarter.

Online orders have increased by 47% for the first quarter of FY21 compared to the last quarter of FY20 and the company now expects the EBIT contribution from online in FY21 to be higher than previously anticipated. It's expecting first half net profit to be 70% to 80% more than the first half of FY20.

The post 4 small cap ASX dividend shares with large yields appeared first on The Motley Fool Australia.

It reported a statutory net profit of $8.9 million, which was up 189% compared to the prior corresponding period reflecting the gain on its URB acquisition. Statutory earnings per share (EPS) was 11.5 cents, up 150% on last year. 

Its operating profit of $3.5 million was down 11% because of the URB acquisition and higher cash balances. Operating EPS dropped 25% to 4.5 cents. 

The property business' distributions per security was 4.5 cents, in line with forecasts. Its net tangible assets per security was $1.17 pre-AASB9 loss allowance. 

During the period it completed the merger with URB Investments Limited, increasing the market capitalisation from $84.9 million to $148.7 million. It also completed a institutional placement of $10.8 million in October 2019. 

It achieved an average internal rate of return (IRR) of 16% on exited loan investments. It also disclosed that it increased its loan book to $101 million of first mortgage real estate debt at an average interest rate of 9.8%. 

Another highlight was that it acquired 23 apartments in Gladesville, NSW at 20% below the valuation and it has commenced a sales campaign. An initial four sales translated to a return on equity of 31% over a 3-month investment horizon. 

It is forecasting FY20 operating earnings of 9 cents per security and distributions per security of 9 cents per security. 

The post Hot small cap grows profit by 189% appeared first on The Motley Fool Australia.

360 Capital Total Return Fund said that it had completed its acquisition of URB Investments and it has commenced a sale of the shares that URB owned. It has already sold $17.8 million and still holds $3.1 million of shares. 

Another part of the update said that the fund's $8 million Coogee and $7.7 million Perth hotel loan investments have now been repaid, delivering a 15.1% and 16.8% rate of return per annum respectively. The fund's $100 million real estate loan portfolio now comprises only senior secured first and only mortgages with an average all-in interest rate of 9.8% and portfolio loan to value ratio of around 67% on a fully drawn basis. 

360 Capital Total Return Fund also also announced that it has commenced the sales campaign for the Gladesville apartment asset. Recent sales within the area support sales prices approximately 26% above the fund's November purchase price. 

Next, investors were reminded that it had jointly invested in a 19.9% stake of Velocity Property Group (ASX: VP7) for an investment of 2 cents per share, reflecting a 60% discount to the June 2019 NTA of 5.6 cents per security. 

360 Capital Total Return Fund has now providded a $23.7 million residual stock loan over a completed project that is currently being sold down and a $10 million secured convertible note with a term of two years and an interest rate of 7% with a conversion price of 4 cents per security, a 28% discount to the NTA – conversion rights are subject to Velocity shareholder approval.

Management have decided to commence a buy-back because it's trading at an 11% discount to the unaudited core NTA of $1.16 per share. It will buy up to 6.7 million securities, or 10% of the units on issue. 

360 Capital Total Return Fund re-iterated its forecast distribution guidance of 9 cents per unit, reflecting a forecast distribution yield of 8.5%. 

It also expects to report for the December 2019 half-year: an operating profit of 4.5 cents per unit, NTA of $1.16 per unit and cash of $33.1 million with current receivables of $18.1 million. 

The post 360 Capital Total Return Fund share price rises on update, buyback 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 0.63% to 7,088.00
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.69% to 7,199.00
• AUD/USD at US 69 cents
• Gold at US$1,559.45 an ounce
• Brent Oil at US$62.30 a barrel

One of the best-performing ASX 200 shares today was property business National Storage REIT (ASX: NSR), its share price climbed 6% in response to talks of a takeover.

The share price of Webjet Limited (ASX: WEB) also went up by 5.1% because of media reporting that takeover talks were progressing.

It was a painful day for Cimic Group Ltd (ASX: CIM) with the share price being crunched almost 20% after announcing a huge write-off.

Engineering business Downer EDI Limited (ASX: DOW) saw its share price drop 17.8% after downgrading its profit expectations.

A falling oil price had a pretty rough effect on Beach Energy Ltd (ASX: BPT), its share price dropped 6.4% today.

360 Capital Total Return Fund (ASX: TOT) gave an update today and also announced a share buy-back, which sent it share price up by more than 1%.

The announcement of the new chairman for Westpac Banking Corp (ASX: WBC) was not enough to stop the share price falling 0.3%.

Finally, the share price of Netwealth Group Ltd (ASX: NWL) dropped 2.6% after giving its December 2019 quarterly business update.

Here are some of today's top stories:    

• Which ASX share has the most valuable Australian brand?
• Coles and Woolworths shares hit record highs as Kaufland exits
• Why this ASX tech share has surged 10% this morning
• Morgan's ASX large cap best buys for 2020

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

If you pick shares with yields above 6% the yield is high enough that you could still keep some money as cash.

Here are three ideas:

WAM Research Limited (ASX: WAX) 

WAM Research is a listed investment company (LIC) which invests in undervalued growth businesses on the ASX.

Some of the growth shares it's invested in at the moment are City Chic Collective Ltd (ASX: CCX), Brickworks Limited (ASX: BKW) and BWX Ltd (ASX: BWX).

Over the past five years it has generated returns of 14.4% per annum before fees, expenses and taxes, so WAM Research pays out a growing dividend from this performance. It has increased its dividend every year since the GFC, which is a great record.

It currently has a grossed-up dividend yield of 9.25%.

NAOS Small Cap Opportunities Company Ltd (ASX: NSC) 

Assuming a quarterly 1 cent per share dividend, Naos Small Cap Opportunities offers a grossed-up dividend yield of 7.6%.

This LIC invests in small caps on the ASX with market caps between $100 million to $1 billion, but it only invests in shares that the investment team have high conviction with for the long-term. That's why it only owns 11 different shares. Some of the shares that it has invested in are MNF Group Ltd (ASX: MNF), Service Stream Limited (ASX: SSM) and 360 Capital Total Return Fund (ASX: TOT). It's a diverse group of businesses with good growth potential.

Naos aims to deliver shareholders a sustainable growing stream of fully franked quarterly dividends.

Tassal Group Limited (ASX: TGR) 

Tassal has a trailing grossed-up dividend yield of 6.1%.

It's Australia's largest fish business with large salmon and prawn farms. There is growing demand for healthy Australian grown fish which are produced with sustainable practices.

The last several years has seen Tassal grow its operating earnings and margins. It's investing in the latest fish infrastructure to reduce costs and increase margins. It's also planning new farms.

Further growth is expected over the long-term and the share price decline could be a long-term opportunity.

Foolish takeaway

Each of these shares could be strong long-term performers for dividends. I think WAM Research could be the best pick because of its large yield, however the Naos LIC is trading at a 15% discount to its net assets, which is an attractive discount.

The post 3 shares to buy with dividends yielding more than 6% appeared first on The Motley Fool Australia.

Aside from outlining how its current investments went over the past 12 months, Soul Patts also gave some insight into areas where it's looking for value across asset classes.

Those five areas are:

• Private equity
• Private credit
• Retirement living
• Financial services
• Agriculture

Obviously it's quite difficult to find private equity on the ASX as well as private credit. Perhaps Soul Patts is thinking about stepping into the credit space where some banks aren't really willing to lend any more – there's still money to be made. Indeed, 360 Capital Total Return Fund (ASX: TOT) is doing a good job at that.

Retirement living is certainly an area that's been roughed up a bit after the aged care royal commission. Aveo Group (ASX: AOG) is being snapped up by a foreign buyer and some fund managers are starting to sniff around aged care operators like Japara Healthcare Ltd (ASX: JHC).

The royal commission into financial services has caused the big banks like Australia and New Zealand Banking Group (ASX: ANZ) to have another think about being in the financial advice space. However, as Soul Patts mentioned, there's still a large amount of cash flowing into superannuation each year – it's a growth area.

Agriculture is an area that Australia has a big advantage in, and it could grow substantially with changing consumption habits and a growing global population. Soul Patts added to its Duxton trusts investments, but in my opinion there's plenty of other good options at good value like Duxton Water Ltd (ASX: D2O), Rural Funds Group (ASX: RFF), Vitalharvest Freehold Trust (ASX: VTH) and Costa Group Holdings Ltd (ASX: CGC).

Foolish takeaway

Aside from agriculture, I don't really have exposure to the other areas in my portfolio. But I'm very happy to get exposure through my holding of Soul Patts shares and plan to increase my holding of it steadily over time.

The post 5 investment areas that this top manager is looking at appeared first on The Motley Fool Australia.

Whilst the All Ordinaries index does provide diversification, it is dominated by financial shares such as Commonwealth Bank of Australia (ASX: CBA) & Westpac Banking Corp (ASX: WBC) and resource shares like BHP Billiton Limited (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL).

I think these three ASX growth shares are likely to beat the All Ordinaries over the next five years:

Costa Group Holdings Ltd (ASX: CGC)

Costa is Australia's largest fresh food business. It grows tomatoes, avocados, mushrooms, berries and citrus fruit.

It has delivered solid shareholder returns since listing and has predicted low double-digit profit growth for each of the next five years. This growth is being driven by productivity investments, bolt-on acquisitions near existing farms, large-scale acquisitions in new regions and expanded plantations in Australia, China and North Africa.

Costa could grow further into other fresh food categories – the avocado segment is only a recent addition. It's this particular idea that makes me believe Costa could surprise the market positively in the future.

The prices Costa gets for its produce could increase over time with improving Australian diets and growing demand for Australian products from middle class Asians.

Costa is currently trading at 28x FY19's estimated earnings.

Challenger Ltd (ASX: CGF)

Challenger is Australia's largest provider of annuities, which turns retirees' capital into a source of guaranteed earnings.

Share markets are volatile, but the underlying demand for annuities is expected to grow due to the ageing demographics, supportive government policies and likely negative changes to franking credits & negative gearing.

Challenger may be able to grow underlying earnings at high single digits annually for several years to come.

It's currently trading at 14x FY19's estimated earnings with a grossed-up dividend yield of 5%.

WAM Microcap Limited (ASX: WMI)

I think one of the best ways to beat the All Ordinaries is with small cap shares because their small starting size means they can grow significantly before size becomes an issue.

WAM Microcap is run by the high-performing Wilson Asset Management. Since inception in June 2017 its portfolio has returned an average of 20.1% per annum before fees and taxes.

With small cap growing businesses like Specialty Fashion Group Ltd (ASX: SFH) and 360 Capital Total Return Fund (ASX: TOT) in the current portfolio it's likely WAM Microcap can keep outperforming the All Ordinaries.

WAM Microcap is currently trading at a slight premium to its underlying NTA with a grossed-up ordinary dividend yield of 4.2%.

Foolish takeaway

I think each of these shares are good candidates to beat the All Ordinaries over the next five years. At the current prices I think Challenger looks the best choice to me for compounding returns, but I'd happily buy the other two for the long-term at the current prices.

However, rising interest rates could mean there are even better choices than Challenger out there.

The post How you can beat the All Ordinaries with these 3 ASX growth shares appeared first on The Motley Fool Australia.

If investors are willing to looking further down the market capitalisation list, there's a lot of opportunities to be found.

Naos have analysed that there are around 1,380 ASX listed companies with a market capitalisation of above $10 million. After removing companies with no revenue, companies with a market cap above $1 billion and businesses in the oil & gas industries there are 662 companies remaining.

The NAOS Small Cap Opportunities Company Ltd (ASX: NSC) listed investment company (LIC) aims for market capitalisations of between $20 million and $1 billion.

The Naos Small Cap team have identified 360 Capital Total Return Fund (ASX: TOT) as a core position in December 2017.

360 Capital Total have created a strategy of providing short to medium debt funding packages for some property development projects. Naos believes the regulation changes affecting Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) have changed the banks' willingness to fund projects regardless of the economics or size of the project.

The Naos team think that as the big banks retreat it will allow 360 Capital Total's funding reserves and management's ability to uncover high quality deals with industry players who have developed property for many years and not just in the most recent cycle.

Naos think 360 Capital Total will be in a good position because it will often have a first mortgage position as well as director guarantees. It will often lend at loan to value ratios that are much lower than 80%. The Naos team expect that all of the excess funds will be utilised and should turn into increased earnings for FY19.

360 Capital Total has recently entered into arrangements with rates of return of between 12% to 15% and Naos estimate that the fund will have a distribution yield of greater than 12% in FY19.

Foolish takeaway

It's by identifying these types of opportunities that could make NAOS Small Cap Opportunities a market-beater, which is why I think it's one to watch over the coming years. LICs that operate in the small cap space are the ones most likely to outperform due to how few analysts cover the shares of that size.

The post Why this small-cap manager is a fan of this high-risk, high-reward share appeared first on The Motley Fool Australia.

Here are four reasons why I believe it is a buy at current prices.

Reason 1

Despite Wednesday's jump in security price, the stapled securities of the Fund continue to trade at a 10.5% discount to its net tangible assets (NTA) of $1.33 (at the time of writing), leaving plenty of upside potential on the table for long-term security holders. This is just the first reason why I think the Fund is a buy.

Reason 2

The Fund is managed by listed investment manager 360 Capital Group Ltd (ASX: TGP) ("Manager"), whose mandate is to generate a total return of 12% per annum though selective investment in real estate assets and undervalued listed-REITs.

Since listing in April 2015 at an issue price of $1.25, the Manager has exceeded this performance benchmark, delivering a 15.8% total return at the fund level. That's my reason number two.

Reason 3

The Fund's asset performance and balance sheet strength is my third reason for selecting it as an investment candidate.

In the 2016 year, the Fund generated an operating profit of 8.9 cents per security and bought back 9 million securities (or 22.7% of issued capital) to organically increase earnings per share.

Additionally, the Fund recycled one of its largest assets (Frenchs Forest) at a profit and delivered an unrealised gain on its strategic investment in listed peer Industria REIT (ASX: IDR) of $2.2 million.

These initiatives and investments demonstrate the Manager's sound management capabilities, which is reflected in its higher than market price NTA backing, providing proof enough for reason number three.

Reason 4

Pleasingly, the spoils of these solid results and initiatives are being shared with security holders.

The Manger announced the Fund will distribute a forecast 7.6 cents per security based on cash flow from normal operations in the 2017 financial year.

At the current price of $1.19, this places the Fund on a robust trailing yield of 6.4%, with potential upside through a special dividend as a result of ongoing capital management activities.

With interest rates so low, the reliable income stream provided by the Fund is my reason number four.

Foolish takeaway

For every reason to buy shares in the Fund, naysayers will be able to provide 10 reasons for not buying. However, investing is not about following the masses, but instead, taking calculated risks.

Although the Fund's security price under performed both the S&P/ASX 200 Index (ASX: XJO) and S&P/ASX 200 A-REIT Index (ASX: XPJ) since listing, the Manager's track record, future management strategy and distribution guidance should provide enough compensation for investors to take the plunge and buy a security which trades at a discount to its NTA.

The post 4 reasons I think the 360 Capital Total Return Fund is a buy 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.