Australia has already been a major beneficiary of the growth of the Chinese middle class with its increasing demands for quality foods and wine from the likes of A2 Milk Company Ltd. (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE).

With new found wealth, and the ability to travel overseas, we will also benefit from an expected doubling of visitors from one of the world's fastest growing economies in the next ten years.

ASX-listed companies that should benefit from this boom in tourism include Sydney Airport Holdings Pty Ltd (ASX: SYD), which is the major gateway for tourists entering the country.

Operators who provide services to travellers to explore Australia should also benefit.

Apollo Tourism and Leisure Ltd (ASX: ATL) is my top choice here. Apollo is the largest rental provider of recreational motorhomes in Australia, and also has operations in New Zealand and North America. Not only does it rent motorhomes, but it manufactures and sells them under the brand names of Winnebago and Talvor in Australia and New Zealand.

It started as a family run business and has grown rapidly through acquisitions. In March it added the major UK operator Camperco to its global stable which provides the opportunity to further expand in Europe.

Although far from being a tech company, Apollo also has a 25% stake in Camplify the fast-growing online business which has been born out of the emergence of the sharing economy, linking caravan owners to caravan renters for short-term rentals.

Chinese tourists have initially been happy to go on guided coach tours when coming to Australia, but that is now changing rapidly as independent travel is seen to be more rewarding.  Figures from Tourism Research Australia show that there was 112% growth in camping and caravan visitor nights by Chinese tourists from 2016 to 2017.

Sitting on an undemanding PE of 17, and a dividend yield of just under 2%, Apollo is a tourism stock that offers an opportunity to Australian investors to ride the tourism wave.

The post A share I think can profit from the tourism wave into Australia appeared first on The Motley Fool Australia.

More reading

I am always looking for great stocks to buy and hold on the Australian stock market. Future returns are never guaranteed but strong well-run companies make for great investments. 

The following are three stocks that I would buy and hold for the next five years. 

Woodside Petroleum Limited (ASX: WPL) 

Woodside is Australia's number one oil and gas producer. The company's recent acquisition of the remaining 50% of the Scarborough gas field it did not own in WA has further helped to increase its reserves.  

With increasing demand for LNG from China, as the country looks for ways to reduce pollution and replace the use of coal as an energy source, Woodside is a good long-term bet. An added bonus is the almost 5% dividend.  

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

Often referred to as the Berkshire Hathaway of Australia, WHSP is one of the oldest companies on the Australian Stock Exchange having listed in 1903. Originally a pharmacy focussed business it now encompasses major investments in companies as diverse as Brickworks Limited (ASX: BKW) and TPG Telecom Ltd (ASX: TPM).  

Soul Patts is conservatively run with a focus on buying and holding investments for the longer term. It has an unusual cross-shareholding agreement with Brickworks, which is designed to prevent an opportunistic takeover, but it also leads to a discount of its share price to its assets. The company has also paid a dividend without fail since listing and currently distributes a 3% dividend. 

Macquarie Telecom Group Ltd. (ASX: MAQ) 

Originally a pure telecom company Macquarie has re-invented itself as a major cloud service provider winning major deals from government as well as a Fortune 100 customer. It has major data centres in Sydney and Canberra, although the company suggests more are likely to be added in 2019 as capacity is being filled at a rapid rate.   

With a strong focus on customer service that differentiates itself from its competitors as well as strong business leadership, Macquarie should flourish as more businesses move to the cloud. At its current price, it provides a 3% dividend. 

The post 3 great stocks I'd buy and hold today appeared first on The Motley Fool Australia.

More reading

With its beautiful white sandy beaches, cuddly marsupials and world-class cities, Australia is firmly entrenched as a top tourist destination. For the year ending January 2018 over 8.8 million visitors came here, and government forecasts suggest the numbers will double over the next ten years.

This does provide a great investment opportunity, and I would look at buying the following shares to benefit from the growth in tourism to our shores.

Sydney Airport Holdings Pty Ltd  (ASX: SYD)

The gateway to Australia and a monopoly until the Badgery Creek airport opens in 2026. More tourists arrive through Sydney airport than any other entry point, and the company makes money not just in aeronautical fees but in retailing, parking and more recently through the addition of hotels.

Experience Co Ltd (ASX: EXP)

A minnow compared to Sydney Airport but Experience Co, formerly known as the 'Skydive the Beach Group' is focussed on buying and running tourism assets across of Australia. Holidays are becoming increasingly focussed on activities and Experience Co has them by the boatload.

Originally the company focussed on tandem skydiving but has now added new attractions such as Great Barrier Reef helicopter flights, hot air ballooning and white water rafting. On April 3rd it further won the tender to run accommodation and activities on Dunk Island.

Ardent Leisure Group (ASX: AAD)

In the news for all the wrong reasons in 2016 due to the terrible Dreamworld accident, Ardent has begun to recover, with attendances at its theme parks increasing over 30% last year.

Tourists flock to the Gold Coast when they visit Australia, and Ardent will be a prime beneficiary of increased inbound tourism, as well as domestic visitors. With redevelopment plans including new attractions and possible onsite hotels, the business is well placed to increase its revenues.

The post Three ASX shares to buy to take advantage of this trend appeared first on The Motley Fool Australia.

More reading

There are well over 2,000 different stocks listed on the ASX, which presents the potential investor with a little too much choice. It is always good to diversify as you don't want all your eggs in one basket, which means you don't want to own just the Australian banks. 

If I had $10,000 to invest in the market this week, these are the stocks I would buy. 

Auckland International Airport Limited (ASX: AIA)

The gateway to New Zealand and the South Pacific, and a monopoly, Auckland Airport continues to grow traffic, with passengers increasing over 6% in the last year. The airport is making substantial investments in both retail, accommodation, and industrial space in the airport precinct it owns.  

With New Zealand becomingly increasingly popular as a destination, particularly amongst the growing Chinese market, I believe the airport and its share price will only continue to grow. The company is also committed to increasing its dividend and currently yields 3.4%. 

Woodside Petroleum Limited (ASX:  WPL) 

The Perth based global LNG explorer and producer has seen its shares dip recently as it announced a 1 for 9 rights issue to fund its purchase of the Scarborough LNG reserves from ExxonMobil.  

LNG demand has doubled since 2005, and Royal Dutch Shell predicts it will double again in the next 15 years. The demand for gas from Asia, particularly China, but also from India and Pakistan, is exceeding all forecasts, as countries search for a cleaner fuel than coal. The planned supply may not meet this increased demand and could lead to shortages, and associated price increases.  

With a dividend yield of 4.4%, Woodside should also reward patient investors with a decent income from owning their shares. 

InvoCare Limited (ASX:  IVC) 

Nothing is certain in life except taxes and death. You cannot invest in the ATO, but you can in the funeral business. It certainly is not a sexy industry and is as far from a tech stock that you can get, but it is highly profitable and Invocare is the market leader in Australia and New Zealand. The shares also pay a healthy annual dividend of 3.3%. 

The post Where I would invest $10,000 in the share market today  appeared first on The Motley Fool Australia.

More reading

Stock markets never move in one direction, although, given the stellar performance of the ASX and global markets in the first few weeks of the year, you could be forgiven for thinking they do.

With volatility now beginning to creep in, I am looking for defensive stocks to invest in. Here are four stocks that still provide growth but minimise risk.

Telstra Corporation Ltd (ASX: TLS) The telco unloved by many in the market since the dividend cut of 2017. The dividend reduction was actually quite a sensible move, to allow for investment for growth rather than paying out all of its profits to shareholders. It now sits on a low PE of 11 and still manages to have a market-beating yield of almost 7.5%.

Sonic Healthcare Limited (ASX: SHL) A medical diagnostic company with a global footprint, Sonic provides pathology and radiology services in Europe, the US and Australia. It is growing its earnings per share at 10% per year, is on a PE of 20 and a yield of 3.5%.

InvoCare Limited (ASX: IVC) Two things you cannot avoid, death and taxes. Invocare is a dominant player in the latter area, controlling over a third of funeral homes and crematoria in Australia. It pays out an increasing dividend, currently at 3%, although, it does sit on a relatively high PE of 29 due to its constantly increasing revenue and strong management team.

Wesfarmers Ltd (ASX: WES) Its chain of Bunnings home improvement stores continues to grow revenue and profit consistently every year. You also get Coles, Officeworks, resources, safety products and chemicals when you buy shares of this Western Australia based conglomerate. It currently sits on a PE of 17 and rewards shareholders with a dividend yield of over 5%.

Owning these stocks gives a combination of growth, income, and diversification, along with helping me sleep better at night.

The post 4 defensive shares I like for dividend investors appeared first on The Motley Fool Australia.

More reading

Australia may not have the Nasdaq cloud heavyweights of Google, Microsoft and Amazon (through its highly profitable Amazon Web Services), but it does have some home-grown success stories. 

Gartner, the IT research group, is predicting global growth in cloud services of over 15% per year over the next 3 years as more and more businesses move their data and applications to off-site data centres. 

Here are my 3 favourite cloud stock ideas. 

Macquarie Telecom Group Ltd. (ASX: MAQ) 

Despite its name, Macquarie Telecom is not just another telco delivering just voice and mobile services.  

It is focussing more and more on delivering secure cloud services, particularly to government, where it now derives more than 50% of its earnings. It has invested heavily in building the required infrastructure, and this has started to pay off with its profit increasing 214% over the last year. 

It has no debt, a P/E ratio of 22,  and a dividend yield of 3.3%. 

NextDC Ltd (ASX: NXT) 

One of the very first data centre operators in Australia with sites in all of the major cities.  

Consistently NextDC has been delivering growth and earnings, with revenue last year growing 21%. There is no sign of a drop off in demand for its services with its brand new Sydney S2 data centre selling out of its available space before it has been completed. 

But with a P/E ratio of 98 and no dividend, I would be waiting for a pullback in price before buying 

Citadel Group Ltd (ASX: CGL) 

Another hybrid company, mixing software services and cloud offerings. Based in Canberra and mainly focussed on government, Citadel has grown rapidly, mainly by acquisition, since listing on the ASX in 2014. 

As well as cloud services Citadel is focussed on developing software for the health sector and for the security services. 

With a P/E ratio of 25 and a dividend yield of 2% Bell Potter named it one of its top 12 stocks for 2018. 

Foolish takeaway 

All three stocks offer great opportunities for growth over the coming years. If I was to buy one today it would be Macquarie Telecom, its growing profit, combined with a reasonable dividend, puts it in a strong position over the next five years. 

The post 3 stocks shooting into the cloud  appeared first on The Motley Fool Australia.

More reading