I think that WAM Global Limited (ASX: WGB) is a great share for those investors who are older than 50.  

If you’re in retirement, or getting closer to retirement, I think it becomes more important to have good diversification in your portfolio.

I also believe that most Aussie investors should have some exposure to shares that are listed overseas. The ASX only makes up 2% of the global share market.

Why WAM Global is a great share for investors older than 50

WAM Global is a listed investment company (LIC). That means the job of the investment team at Wilson Asset Management (WAM) is to invest in shares on your behalf.

Investors older than 50 may not have the time or desire to continually manage their investment portfolio. WAM Global can do the investing decisions for you.

As the name might suggest, this LIC invests in global shares.

What are some of the shares it owns right now? At the end of April 2020 it owned shares like Tencent, Amazon, Aon, Activision, CME Group, Costco, Doller General, Hasbro, Hello Fresh, Intuit, Logitech, Lowe’s, Microsoft and Nomad Foods. That’s a defensive group of names that’s suited to no matter what happens with the coronavirus.

What about the dividend?

LICs have the ability to turn capital gains made and investment income received into a smoothed dividend to investors older than 50 (and all other shareholders). WAM Global has been steadily growing its dividend since it started paying one. Keep in mind it only listed in June 2018.

It currently offers an annualised fully franked dividend of 6 cents per share. This amounts to a grossed-up dividend yield of 4.2%.

For investors older than 50 that’s not a huge yield. But it will probably keep growing over time. Just like the other WAM LICs have done.

Is it a good time to buy right now?

WAM Global’s share price has recovered strongly since 23 March 2020 – it’s up 47%. In March would have been the best time to buy. The share price discount to the net tangible asset (NTA) isn’t as big as it used to be. Australia’s dollar has continued to strengthen. 

At the end of April 2020 it had a pre-tax NTA of $2.25, so today’s share price is an 8.5% discount to the NTA last month. Many share prices have been rising throughout May 2020, so the discount could be somewhere in the mid-teens.

I think it’s a good price today to buy for the long-term for investors older than 50, though be aware there could be another market fall later this year.

More reading

• Top ASX Stock Picks for June 2020
• 2 ASX shares that are absurdly cheap right now
• How to build good wealth with small investments
• Do you have $3,000 to invest in these 3 top ASX dividend shares?
• How to build your first ASX share portfolio

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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I think there’s a rare buying opportunity for Woolworths Group Ltd (ASX: WOW) shares today.

Woolworths shares have had a fairly interesting ride lately.

Back in February, Woolworths shares made a fresh new all-time high of $43.96. Then the March share market crash hit and the shares went all the way down to $32.12. When it became apparent that Australians were stocking up on food, toilet paper, and other essentials in February and March, the Woolies share price rebounded back to the $40 level.

But since then, Woolworths shares have languished while the rest of the market has surged. For some context, since 23 March the S&P/ASX 200 Index (ASX: XJO) has risen close to 28%. Woolworths shares? A 3.66% drop.

Why are Woolworths shares stuck in the mud?

You would think that after Woolworths reported a record quarter (ending 31 March 2020) that investors would be scrambling to get a hold of this company’s shares. Especially those investors who were willing to pay nearly $45 for the same shares just a few months ago.

But investors know that the healthy bump Woolies got in February and March isn’t here to stay. According to the company, consumption patterns have more or less returned to normal. What hasn’t returned to normal though is Woolworths’ spending. The company has had to ramp up costs considerably as a result of the coronavirus pandemic. Safety screens, extra cleaning, enforcing social distancing at its stores, and additional staffing costs are all expensive and will probably be weighing the company’s balance sheet down for at least the next year, possibly longer.

It’s my view that investors are seeing these costs and as a result, aren’t in a rush for Woolworths shares.

Why the Woolworths share price might be a buy today

At current levels, I’m seeing a pricing opportunity for Woolworths shares. Why? Because the company is trading at no premium to its arch-rival Coles Group Ltd (ASX: COL). Being a larger, more diverse company with a higher market share of the Australia grocery industry, Woolworths has historically commanded a pricing premium to Coles.

But today, the shares are neck-and-neck. On current prices of $35.28 (at the time of writing), Woolworths shares are trading on a price-to-earnings (P/E) ratio of 17.48 and a trailing dividend yield of 2.93%.

If we look at the Coles share price at $15.48, we can see a P/E ratio of 17.08 and a trailing dividend yield of 2.77%.

So the companies are pretty much dead-even on a P/E basis and Woolworths actually comes out on top regarding dividend yield.

Foolish takeaway

I think dividend shares will continue to be in demand in 2020 as a result of record-low interest rates. And in my view, Woolworths is one of the most reliable ASX dividend shares on the ASX today.

As such, I think Woolworths is a decent buy today.

More reading

• 3 ASX 200 tech shares to buy and hold beyond 2025
• In your 50s? Here are the 2 best ASX 200 shares to buy now
• These ASX shares are set to get a big boost from the next big government stimulus
• These 5 ASX 200 shares were last week’s biggest winners
• 3 leading ASX 200 shares to buy for market-beating returns

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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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If you’re looking to add a few blue chip ASX shares to your portfolio this month, then the two listed below could be good options.

I believe these blue chip ASX shares have the potential to provide strong returns for investors over the next few years. Here’s why I would buy them in June:

CSL Limited (ASX: CSL)

The first ASX blue chip share to consider buying is this leading biotherapeutics company. Its shares were surprisingly out of form in May and are now trading around 17% lower than their 52-week high. I think this is a buying opportunity for investors that have been wanting to get a piece of the company.

And while there is a danger that the pandemic could have impacted its plasma collections during lockdowns, I believe higher unemployment will support collections once the crisis passes. Outside this, I believe its long term outlook remains very positive. This is thanks to the strong demand for immunoglobulin products, its growing Seqirus vaccine business, and its burgeoning research and development pipeline. All in all, I believe CSL is a blue chip to own for the long term.

Telstra Corporation Ltd (ASX: TLS)

I think Telstra is another great blue chip ASX share to own right now. After several years of struggles, the telco giant appears close to returning to growth once again. This is thanks to a combination of its T22 strategy, rational competiton, and the easing of the NBN headwind.

In fact, if it had not been for the NBN headwind, Telstra’s operating earnings would have been up on the prior corresponding period during the first half. In light of this and the current free cash flows it is generating, I believe its dividend cuts are over and 16 cents per share is the bottom. This equates to an attractive fully franked yield of almost 5%.

More reading

• In your 50s? Here are the 2 best ASX 200 shares to buy now
• 5 winning ASX dividend shares to buy in June
• Why Austal, CSL, Fortescue, & Star shares are charging higher today
• 5 ASX 200 winners and 3 losers from last week
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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