I like to regularly invest in ASX shares, usually every month. In June, I’m planning on buying more shares in Washington H. Soul Pattinson and Co Ltd (ASX: SOL).
While the investment house isn’t currently one of my biggest positions, I would like to grow my position in the company at the right price.
And I’m thinking that the current Soul Pattinson share price is the right price.
Below are the main reasons why I’m thinking about investing in more of its shares.
Soul Pattinson shares are cheaper
One of the most important parts of investing, in my opinion, is picking the right investment and buying it at a good price for the long term.
The Soul Pattinson share price has fallen by approximately 16% since the start of the 2022 calendar year. While its shares haven’t exactly crashed, I think this price is more attractive than it was when the year started.
Management has created a long-term reputation for value creation. I think the current Soul Pattinson share price now offers a good opportunity for me to increase my exposure.
Great diversification
In a volatile market like this, which has generally been trending downward, I think Soul Pattinson is a useful business with good diversification across a number of different industries.
The ASX share is invested in areas such as telecommunications, resources, agriculture, banking, financial services, swimming schools, and luxury retirement living. It’s also invested in areas like venture capital, property, structured credit, and cash.
Soul Pattinson says its portfolio of assets generates “reliable” cash flow through market cycles which can protect against the downside in market corrections.
I think Soul Pattinson is one of the easiest businesses to think long-term about because of its own investment strategy in investing long term with its holdings and possible future investments.
Investment universe
I really like that Soul Pattinson can choose to invest in any asset class that it wants to. This allows the business to diversify but also means the company can throw its investment net far and wide to try to find potential opportunities.
The company points out that a “flexible investment mandate allows WHSP to invest in and support companies from an early stage and grow with them over the long term”.
The flexibility of Soul Pattinson to invest in areas such as agriculture, retirement living, global shares, education, and so on gives it more sectors to look at for opportunities. In this period of market declines, there are plenty of potential opportunities for the company to look at.
Dividend
The Soul Pattinson dividend is one of the main reasons that I like this ASX share.
While the grossed-up dividend yield is 3.5%, it has built a long-term record of dividend stability and growth.
It has grown its dividend every year since 2000, which is a useful streak of growing cash returns while the Soul Pattinson share price goes up and down with the ASX share market.
Foolish takeaway
At the current Soul Pattinson share price, I’m quite eager to buy some more shares. Even if it were to rise a little, I’d still want to buy a parcel of shares because of how good I think the business is as an ultra-long-term investment.
The post Here’s why I’m going to invest in more Soul Pattinson shares in June appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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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