If you’re looking to invest $5,000 into the Australian share market, then one of the shares listed below could be worth considering whether you’re looking for growth, income, or value.
Here’s why I think investors should buy these ASX shares:
Accent Group Ltd (ASX: AX1)
I think Accent could be a great option for value investors. Although the retail sector is having a very tough time and trading conditions are unlikely to improve quickly, I still think this footwear retailer could prove to be a bargain buy. While its earnings will almost certainly decline this year, I expect a rebound of sorts in FY 2021 before a full recovery a year later. Based on a recent note out of Morgan Stanley, it expects earnings per share of 7 cents in FY 2020 and then 8 cents in FY 2021. Based on the latter, its shares are currently changing hands at just 13x FY 2021 earnings.
Dicker Data Ltd (ASX: DDR)
If you’re an income investor you might want to consider investing $5,000 into Dicker Data’s shares. The wholesale distributor of computer hardware and software has been growing its earnings and dividends at a consistently strong rate for many years. The good news is that this trend has continued during the pandemic. Last month the company released its first quarter update and revealed a 36.3% increase in profit before tax to $18.4 million. Management also advised that it intends to increase its dividend by 31% in FY 2020 to 35.5 cents per share. This represents a 5.1% fully franked dividend yield.
Xero Limited (ASX: XRO)
Xero could be a good long term option for growth investors. Earlier this week the cloud-based business and accounting software provider released its full year results and revealed a 30% increase in operating revenue to NZ$718.2 million. Things were even better further down the income statement, with its margin expansion leading to a 52% increase in EBITDA to NZ$139.17 million. While FY 2021 is likely to be impacted by the pandemic and could stifle its growth somewhat, I believe its long term outlook is as positive as ever. Xero has a significant global market opportunity and, thanks to the quality and stickiness of its product, I expect it to capture a big slice of it.
And here are five dirt cheap shares which combined offer a mix of growth, income, and value as well. They all look like great options to buy after the market crash.
5 cheap stocks that could be the biggest winners of the stock market crash
Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.
Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.
Returns as of 7/4/2020
More reading
- Is the Xero share price a buy?
- ASX 200 drops 1.7%, Xero reports a profit
- Got $5,000 to spend? Here are 5 ASX shares you can buy today
- 2 exciting ASX tech shares to buy right now
- ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Where growth, income, and value investors can invest $5,000 today appeared first on Motley Fool Australia.
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