Have $3,000 to invest? Try these 2 dirt-cheap ASX shares

If you have $3,000 to invest in dirt-cheap ASX shares, I think it’s a great use of money.

Investing in shares isn’t like buying a new computer, iPhone or weave. Rather than your money vanishing into someone else’s pocket, a good investment can put money to work and return it to your pocket over time (hopefully a lot more than you initially invested).

But it goes without saying that central to this outcome is choosing a good investment. And part of finding a good investment is paying a good price.

So today I’ve found 2 ASX shares that I think are dirt-cheap on current prices – and thus have the potential (in my opinion anyway) of making good long-term investments.

Dirt-cheap ASX share 1) Telstra Corporation Ltd (ASX: TLS)

The Telstra share price hasn’t been a top performer over the past week or so. Ever since the telco giant reported a less-than-impressive set of earnings numbers last week, investors have been piling out of Telstra. As a result, the Telstra share price is down nearly 10% since last Wednesday and is going for just $3.07 at the time of writing. But this is what leads me to believe this company is a dirt-cheap buy today.

Firstly, Telstra told us last week that its generous and fully franked 16 cents per share dividend is to be maintained this year. On current prices that gives Telstra a forward dividend yield of 5.26% (or 7.51% grossed-up).

Secondly, the company is heavily investing in 5G technology, the next generation of mobile internet. If the company can extend its market-leading position into 5G when it hits mainstream integration, it could result in a lucrative hunting ground for earnings for Telstra over the coming decade. For these reasons, I think Telstra is a dirt-cheap buy today.

2) Betashares FTSE 100 ETF (ASX: F100)

Turning to an exchange-traded fund (ETF) with this one, here we have a fund that tracks the FTSE 100, which is the United Kingdom’s equivalent to our own ASX. With 100 of the UK’s top companies, it’s a diverse and exotic investment in my view and one that could add some real spice to a portfolio. Some of the top companies in this ETF include AstraZeneca, HSBC, Royal Dutch Shell and Diageo.

The reason F100 has caught my eye is its current share price. This ETF reached a high of $11.50 a share late last year, but as of today, you can pick some up for just $8.46. That’s more than 22% below the pre-crash high we saw in February.

A lower share price also translates into a higher trailing dividend yield. On current prices, F100 is offering a trailing yield of 4.4%, which looks pretty good to me. These numbers lead me to consider this ETF a dirt-cheap ASX share to buy today.

More reading

• Afterpay and Mesoblast were among the most traded shares on the ASX last week
• Telstra share price hit by broker downgrade today
• 2 growing ASX dividend shares to buy next week
• 4 ASX shares to profit from booming ecommerce
• Important takeaways from the Telstra analyst call

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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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