Reluctance to be a first mover is now turning into a race for state premiers!

The risk averse Victorian premier Daniel Andrews declared that the state’s tourism sector is back in business with a significant easing of restrictions from next month.

The decision comes two days after his counterpart in South Australia made a surprise decision to reopen pubs and clubs immediately as it tries to play catchup with New South Wales.

Positive sentiment could lift these ASX shares

Victoria will open the ski season from June 22, while overnight stays will be allowed from June 1, according to the Australian Financial Review.

The move will not be a major earnings booster for ASX shares linked to the tourism industry. Interstate travel is still barred so forget about Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN) for the moment.

But this latest development from one of the most conservative state leaders will provide a further lift to sentiment for the likes of Webjet Limited (ASX: WEB) and rival Flight Centre Travel Group Ltd (ASX: FLT).

And the big rebound in the S&P/ASX 200 Index (Index:^AXJO) from its bear market low of March 23 shows how a little bit of good feeling can make a big difference.

More easing in the near-term

The pressure is building on removing the ban on interstate travel, particularly in Queensland where Premier Annastacia Palaszczuk is resisting calls to open its borders until September at the earliest.

International travel to a select few countries that the COVID-19 pandemic under firm control, such as New Zealand, may also happen sooner than what many think.

The big easing of social restrictions by the Andrews government was more liberal than expected and is due to the mass coronavirus testing in the state.

Is mass testing the answer to COVID-19?

Victoria tested 6340 per 100,000 people – making its population the most tested in Australia and one of the world’s most tested in the world if the state was a country. The state has undertaken more than 420,000 coronavirus tests.

South Korea have used mass testing as a way of containing the virus and is hailed as one of the most successful countries in the world to squash the COVID-19 curve.

But some experts do not believe mass testing is the answer and they point to Japan where the death rates are low and testing is extremely limited.

Last sector to recover from COVID-19

Victoria is not extending the easing to offices though. The premier is not allowing employees to return to their regular work desks, and that is bad news for landlords such as GPT Group (ASX: GPT) and DEXUS Property Group (ASX: DXS).

Premier Andrews believes high-rise dense office environments are the perfect breeding grounds for coronavirus.

This makes me wonder if office-exposed real estate investment trusts (REITs) will be the last in the property sector to recover from the COVID-19 disaster.

More reading

• Got $2,000? Here are 2 ASX 200 healthcare shares to buy today
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately
• What to watch on the ASX 200 next week
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• These were the worst performing ASX 200 shares last week

Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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One of the most effective investment strategies is buy and hold investing.

With this strategy investors will buy the shares of quality companies (with positive long term outlooks) and hold onto them for as long as the investment thesis remains intact.

But which shares should you buy? Here are three mid cap ASX shares that I think would be quality buy and hold options:

BINGO Industries Ltd (ASX: BIN)

BINGO is one of Australia’s leading waste management companies. I think it would be a great long term option for investors. This is due its expansion plans and the recent acquisition of rival Dial a Dump Industries. This acquisition has allowed BINGO to be fully vertically integrated from collections to landfill. It also makes it the largest player in B&D waste in Sydney and provides some much-needed diversification. And while its short term performance is likely to be impacted by the pandemic, I expect things to recover quickly once the crisis passes.

Collins Foods Ltd (ASX: CKF)

Another mid cap to consider buying is Collins Foods. It is one of the region’s largest quick service restaurant operators with 240 KFC stores in Australia, 41 KFC stores in Europe, 12 Taco Bell restaurants in Australia, and 75 franchised Sizzler restaurants across Asia. I believe it would be a great long term option due to its sizeable opportunity in the under-penetrated European market. It has a significant expansion opportunity over the next decade, which could underpin strong earnings growth. 

Nearmap Ltd (ASX: NEA)

A final option to consider is Nearmap. It is a leading aerial imagery technology and location data company that gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This helps users conduct virtual site visits, which enables informed decisions, streamlined operations, and ultimately significant cost savings. While its growth has taken a bit of a hit this year, I believe this is just a temporary hiccup and its long term potential remains extremely positive.

More reading

• These were the best performing ASX 200 shares last week
• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market
• ASX retail stocks facing new billion-dollar earnings scare during COVID-19 recovery
• ASX 200 market close: Share market up 1.8%
• These mid cap ASX shares could grow into large caps in the future

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Collins Foods 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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Having a spare $130,000 to invest in an ASX dividend portfolio is probably an unlikely scenario for most readers (as well as this writer). But that doesn’t mean it’s not a valuable thought exercise!

Building a portfolio of ASX dividend shares typically takes years, a lot of dedication and a lot of discipline. But it’s entirely achievable all the same.

So if this was my ASX investing goal, here’s how I would construct a $130,000 portfolio of ASX dividend-paying shares.

Macquarie Group Ltd (ASX: MQG) – $30,000

My first $30,000 would go to Macquarie shares. Macquarie is one of the best ASX financials in the current environment, in my view. Unlike the big four ASX banks, Macquarie’s earnings come from highly diversified streams, including from outside the country.

Traditional banking services like loans and mortgages only make up a small fraction of Macquarie’s total business. Much more instrumental is Macquarie’s well-regarded investment banking business, as well as its annuity-style asset management side, which I think are huge advantages in these uncertain times. 

On current prices, Macquarie is offering a trailing dividend yield of 4.15%, which normally comes partially franked. As such, I think Macquarie is a great financial company to start off our dividend portfolio.

WAM Research Ltd (ASX: WAX) – $40,000

WAM Research is actually a listed investment company (LIC), which means it primarily invests in other ASX shares rather than operating a business. But WAM Research has proven pretty deft at this, returning an average of 13.4% per annum (before fees) since 2010. 

The reason WAX shares are getting an oversize position in our hypothetical portfolio today is its massive dividend yield. On current prices, this LIC is offering a trailing yield of 7.22%, which typically comes fully franked.

Telstra Corporation Ltd (ASX: TLS) – $30,000

Telstra is a dividend stalwart and offers a compelling enough return on current prices (in my opinion anyway) to justify inclusion in a dividend portfolio.

Right out of the gate, Telstra is offering investors a fully franked 5.21% starting yield (including the special dividend Telstra pays). But I also think that the 5G network Telstra is investing heavily in right now will pay further dividends down the road (literally). I think this investment in the next-gen 5G technology will play out very well for this telco giant, but even if it doesn’t, there’s that healthy dividend to ease the pain!

Brickworks Limited (ASX: BKW) – $30,000

Brickworks is one of the oldest and proudest dividend shares on the ASX, in my view and well deserves a place in this dividend portfolio. Its core building materials business is a lucrative one for Brickworks, but it’s also very cyclical, which can be bad news for a dividend-paying company. Luckily, Brickworks nullifies this cyclicality by investing on other revenue streams, including real estate and a cross-ownership with dividend king Washington H. Soul Pattinson & Co Ltd (ASX: SOL).

This has enabled Brickworks to pay a dividend that has either been steady or grown for over 40 years. That’s some solid reliability, in my opinion. On current prices, Brickworks is offering a trailing dividend yield of 4.25%, which comes fully franked.

More reading

• Here are 2 ASX dividend shares with yields over 10%
• 3 ASX dividend shares I would buy to beat low rates
• How to reduce your work to part-time using ASX shares
• Here’s how I would put $10,000 to work on the ASX
• The latest ASX small caps broker picks to buy today

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited, WAM Research Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, Telstra Limited, 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.

The post How I would build a $130,000 ASX dividend portfolio right now appeared first on Motley Fool Australia.

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