ASX 200 retail shares have been enjoying some strong tailwinds from cashed up consumers. We look at this portfolio manager’s tip.
The post Fundie tips this ASX 200 retail share to prosper in 2021 appeared first on The Motley Fool Australia. –
S&P/ASX 200 Index (ASX: XJO) retail shares have been enjoying some strong tailwinds from cashed-up consumers.
In 2020, Australian households saved $187 billion. That’s more than Aussie households managed to sock away in 2017, 2018, and 2019…combined.
The combination of cashed-up consumers with pent-up demand after enduring months of social distancing and lockdowns is good news for ASX 200 retail shares. Especially with consumer spending comprising some 65% of the Australian economy.
While that’s good for all types of ASX retail shares, discretionary retail shares (those selling items we don’t necessarily need but want to own anyhow) are tipped to outperform.
So which ASX 200 retail shares stand out?
Dermot Ryan is a portfolio manager at AMP Capital.
As the Australian Financial Review reports, Ryan believes Harvey Norman Holdings Limited (ASX: HVN) is among the ASX 200 retail shares “set to prosper as consumer spending strengthened through the economic recovery”.
According to Ryan:
We’ve been very keen on the retail space. We’ve been playing really strongly in that discretionary spend and we’ve seen very strong dividends from that sector… Australia has had a massive rebound because we’ve had one of the biggest stimulus programmes in the world and we haven’t really had that much COVID.
Harvey Norman share price snapshot
Harvey Norman shareholders have been well rewarded over the past 12 months, with shares up 43%. By comparison, the ASX 200 is up 4% in that same time
Though shares are slipping today, down 2.17% in early afternoon trading, the Harvey Norman share price is up 9% in 2021, while the ASX 200 is down just under 1%. The company has a market capitalisation of $6.6 billion.
Harvey Norman pays an annual dividend yield of 7.15%, fully franked.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- 3 ASX 200 shares that doubled profits this reporting season
- These are the latest ASX shares to be hit by broker downgrades
- Leading brokers name 3 ASX shares to buy today
- Has the Harvey Norman (ASX:HVN) share price peaked?
- The Harvey Norman (ASX:HVN) share price slips despite soaring profits
The post Fundie tips this ASX 200 retail share to prosper in 2021 appeared first on The Motley Fool Australia.