Dollar-cost averaging (DCA) is an investing strategy commonly prescribed for the ‘average’ investor on the street. It involves putting a consistent amount of money into an ASX share or portfolio of shares at a consistent interval over time (e.g. $100 a week), with no regard to the underlying price. In this way, you can get an averaged price without having to worry about timing the right entry point, which can be an emotionally fraught exercise.

Of course, this only works if you have a quality company that rises in value over time. Anyone who tried dollar-cost averaging into say AMP Limited (ASX: AMP) over the last decade would have been throwing money away.

So with that in mind, here are 3 ASX shares that I think are perfect for a DCA strategy.

Vanguard Australian Shares Index ETF (ASX: VAS)

This exchange-traded fund (ETF) is perfect for a DCA strategy. That’s because it holds not 1, but 300 of the largest companies on the ASX. It’s impossible to figure out whether an index fund like VAS is truly overvalued or undervalued at any one point, because you would have to do pricing analysis on all 300 companies.

Thus, a far easier way of successfully investing in a basket of companies like this would be to employ DCA. Losing companies are eventually weeded out and rising stars are added to over time. Index funds like VAS have historically always risen and made new highs (despite some volatility in between), and therefore I think this type of investment will serve you well under a DCA strategy.

Washington H. Soul Pattinson & Co Ltd (ASX: SOL)

‘Soul Patts’ is a company that acts as an investor in its own right. It does so by buying other ASX shares and building its own investment portfolio outside its old core business of operating pharmacies. Today, Soul Patts has large stakes in a diverse range of Aussie companies, including TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC) and BKI Investment Co Ltd (ASX: BKI).

Thus, I think this company is a great alternative to an ASX index fund like VAS – which some investors might not like due to the heavy exposure to ASX banks and miners. It has a proud history of growth, including an unbeatable 20-year streak of increasing its dividends. As such, I think it’s a great company to employ a DCA strategy into.

More reading

• 2 quality ASX shares to buy for long-term growth
• Replace your term deposit with these dividend shares
• My ASX share for the week
• How to retire early using ASX shares
• Where to invest $1,000 in ASX ETFs today

Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks 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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The National Australia Bank Ltd. (ASX: NAB) share price closed today’s trade at $15.75.

Sure, this share price isn’t quite as low as the levels we saw in March when NAB shares reached $13.20. But it’s still not far from a level that, until March, we hadn’t seen this century. That’s right, you have to go back to 1996 to find a time when NAB shares plumbed the depths they found 2 months ago.

Even during the global financial crisis, which hit bank shares particularly harshly, NAB shares didn’t see a share price with a 13 at the beginning.

So we already know this ASX bank has been a lousy investment over the past two and a half decades, even with the healthy dividends NAB used to pay. It’s not often you can say you bought a company that went backwards over 25 years.

But it’s still one of the largest companies in Australia, has a virtual government guarantee and a formidable market share in the ASX financials sector.

So is the NAB share price in the buy zone today?

Are NAB shares in the bargain bin?

Well, the first thing to note is that no one should be expecting much in the way of dividend payments in 2020.

Yes, unlike NAB’s compatriots Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Limited (ASX: ANZ), NAB will be paying a 30 cents per share interim dividend in July.

But NAB’s past payments make this look like a pittance. Shareholders were treated to an annual dividend of $1.98 per share in 2018. Last year, investors received $1.66 per share in payments. This year, it looks as though NAB shareholders will be lucky to receive 60 cents per share. That’s a 66.7% cut over 2 years – although I’m not blaming NAB entirely for this, due to the impacts of the coronavirus on the economy.

Still, if an investor bought in at the current NAB share price, this new dividend would translate into an annualised yield of 3.8%, which isn’t really anything to write home about.

However, these dividends are likely to recover somewhat over time. It’s hard to say how much though – that depends on consumers returning to the credit markets in the months and years ahead, as well as what interest rates end up doing.

One investor who’s bullish on NAB shares is Nab’s own CEO, Ross McEwan. Mr McEwan recently picked up 47,500 shares worth around $731,500 (at the time) earlier this month. It’s always nice seeing a CEO put their money where their mouth is.

Foolish takeaway

In time, I think the NAB share price will recover from the lows we see today. However, I’m not in a rush to add to my existing NAB shares alongside Mr McEwan, even at these depths. There’s a lot of uncertainty in the future of the ASX banks, and I’m not confident that the heavy headwinds the sector is facing have a clear end in sight. Thus, I think there are better places to put your money in this market.

More reading

• These are the latest ASX shares to be upgraded by brokers to buy
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high
• ASX 200 Weekly Wrap: ASX rallies on mining highs
• Where to invest $5,000 in ASX 200 shares immediately
• Is the NAB share price a buy today?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The S&P/ASX 200 Index (ASX: XJO) jumped higher today, it rose by more than 2% to 5,616 points.

Whilst the country continues to argue about the $60 billion jobkeeper miscalculation, Treasurer Josh Frydenberg spoke to the ABC to say that the travel sector could receive more support because of the ongoing lockout of international tourists.

ASX travel shares jump

As you can imagine, the potential for support of the travel industry was warmly greeted by investors of ASX travel shares.

The top performers within the ASX 200 were travel shares. The Webjet Limited (ASX: WEB) share price rocketed 15.6% higher and the Flight Centre Travel Group Ltd (ASX: FLT) share price grew 15.2%.

Other travel shares also rose. The Qantas Airways Limited (ASX: QAN) share price went up 7.2% and the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price climbed 3.9%.

Afterpay Ltd (ASX: APT) hits new heights

Last week the ASX 200 buy now, pay later business announced that it had reached 5 million active customers in the US, adding one million customers during this period.

Investors can’t get enough of the company with the Afterpay share price rising by almost 9% to another all-time high today.

Today saw the Afterpay share price finish at $48.50. It has been a huge turnaround from a few weeks ago when the share price was as low as $8.90.

Court win for IOOF Holdings Ltd (ASX: IFL)

ASX 200 financials business IOOF announced that it has reached an agreement for the class action with no order as to costs. IOOF won’t be paying anything to the plaintiff, the lawyers (Quinn Emanuel) or the litigation funder (Regency).

The company said it was very pleased with the outcome.

More reading

• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?
• Why Flight Centre and Webjet shares are zooming higher today
• The Afterpay share price just hit a new record high: Should you invest?
• Leading brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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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