Where should you invest $1,000 in ASX shares?

Want to know where to invest $1,000 into ASX shares?

The ASX has performed strongly since that initial coronavirus share market sell-off. Some share performances have been too strong in my opinion, so I’d leave those ASX shares to one side.

Investing $1,000 of your hard-earned money is an important job. You don’t want to throw it away on the wrong investments. Only go for the best ASX ideas. 

Here is a growth idea and a dividend idea:

ASX growth share: Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay is one of the most promising ASX shares. It’s an electronic donation business that’s currently focused on the large and medium churches in the US. This is such a large sector that Pushpay thinks this is a $1 billion revenue opportunity.

The ongoing coronavirus pandemic is terrible. But Pushpay is helping churches through this. The Pushpay technology enables churches to livestream to their congregations. Electronically donating is obviously also on the rise in a period of social distancing.

Pushpay is expecting that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double over the course of FY21. That would be a very strong result from the ASX share. And that’s just one year. It’s expecting to achieve higher gross margins over time. 

I’m not expecting Pushpay to become a major player in anything other than the US church sector. But if it could grow into other donation areas, that would further increase its growth potential.

ASX dividend share: Brickworks Limited (ASX: BKW)

I think Brickworks is an undervalued ASX dividend share. It owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares which provides reliable earnings and growing dividends

Brickworks also owns a 50% stake in an industrial property trust along with Goodman Group (ASX: GMG). Industrial properties should be in even more demand due to the rapid shift to ecommerce due to the coronavirus.

Most people would know Brickworks as a building products business. It’s certainly tough to be in construction right now. But there is plenty of talk of government support for the sector. And demand for construction will return in the future.

In the meantime Brickworks is making use of the shutdowns to accelerate its plans in the US and it has closed one of its plants.

Brickworks is trading cheaply compared to its asset value. It hasn’t decreased its dividend for over 40 years and currently offers a grossed-up dividend yield of 5.2%.

Foolish takeaway

I think that both of these ASX shares have a strong potential to deliver very good returns over the next few years. Over the next five years I believe that Pushpay could deliver very impressive earnings growth. But Brickworks could provide a very solid dividend as well.

More reading

• ASX 200 rises 0.3%, Zip rockets higher
• Why Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today
• Is Pushpay a millionaire maker share?
• I think these 2 ASX 200 shares will beat the market
• These 5 exciting small cap ASX tech shares rose by up to 70% in May

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company Limited. 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.

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