I believe maintaining a diversified portfolio is one of the keys to success when investing.
While a diverse portfolio won’t necessarily protect you from market crashes like we experienced earlier this year, it will limit the damage of them.
This is because it means you won’t be over exposed to sectors that are hit harder than others. The travel sector is a great example of this in 2020.
In light of this, I have picked out three top shares in three different sectors which I think could be great additions to most portfolios. They are as follows:
Financial sector – Commonwealth Bank of Australia (ASX: CBA)
Investors that don’t already have exposure to the banks might want to consider Commonwealth Bank. I think the pullback its share price this year has left it trading at a very attractive level for a long term and patient investment. Especially if, like me, you’re optimistic the worst is now behind the banks and better days are ahead. Another reason to consider Commonwealth Bank is its dividend. I expect a final dividend cut in FY 2021 down to approximately $3.70 per share. This equates to a fully franked 5.3% dividend yield.
Healthcare sector – ResMed Inc. (ASX: RMD)
In the healthcare sector I think ResMed is worth considering. It is a medical device company which manufactures ventilators and sleep treatment products. It is the latter products that I believe will be the key drivers of growth during the 2020s. This is because of the proliferation of sleep apnoea globally, which is leading to increasing demand for solutions. I believe the quality of its CPAP portfolio and its growing software businesses have positioned it perfectly to capture a growing slice of this market and deliver further strong earnings growth for many years to come.
Tech sector – Appen Ltd (ASX: APX)
Finally, I think Appen is one of the best options in the tech sector right now. The language data company looks well-positioned to continue growing its earnings at a strong rate over the next decade thanks to the increasing importance of artificial intelligence (AI). Appen has exposure to the AI market through its million-plus team of crowd-sourced experts that prepare the data that goes into machine learning models. It has worked with the likes of Facebook, Microsoft, and Apple. I believe this is a testament to the quality of its services.
And here are more top shares which could strengthen your portfolio…
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- How the ASX 200 can help first home buyers save for a deposit
- Millennials be warned! Signs of dangerous ASX share trading grow
- 2 ASX shares to buy for beginners
- Is the Macquarie share price a solid buy today?
- 3 high quality dividend shares to buy instead of the big four banks
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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 Diversify your portfolio with 3 top ASX 200 shares from 3 sectors appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3fvmqEk
Leave a Reply