There are some ASX shares that I’d invest $1,000 into every single month.

I think it’s important to realise that some shares can be very volatile and in some weeks it might not be such a good idea to pay that higher price.

For example, over the past month the Afterpay Ltd (ASX: APT) share price has traded above $58 and below $46. I wouldn’t commit to a consistent investment strategy into a single business like Afterpay when it’s so volatile.

But there are some ASX shares that it could make sense to invest $1,000 into every month, particularly in these coronavirus times. Here are three of those monthly ideas:

Share 1: Vanguard MSCI Index International Shares ETF (ASX: VGS)

I think it’s the easiest to commit to a monthly investment strategy with exchange-traded funds (ETFs). ETFs will always trade at their net asset value (NAV), they’re normally diversified and usually come with low costs.

ASX shares offer good potential investments, but the ASX only represents 2% of the total global share market. We can invest in many of the world’s biggest and best businesses with Vanguard MSCI Index International Shares ETF.

It is invested in over 1,500 businesses across major developed countries such as the US, Japan, the UK and France. Its top holdings are shares like Apple, Microsoft, Amazon, Alphabet, Facebook, Johnson & Johnson, Visa and Nestle.

Despite COVID-19, the ETF has generated returns of 10.3% per annum over the last three years. It has an annual management fee of 0.18% per annum. 

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an interesting business. It’s an investment conglomerate that has been going for over a century. I think it will be around for many decades to come with how it’s set up.

It is invested in a variety of businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Clover Corporation Limited (ASX: CLV), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Magellan Financial Group Ltd (ASX: MFG).

Soul Patts also owns stakes in a variety of unlisted businesses like swimming schools and agriculture.

The ASX share is steadily increasing its diversification and the share price generally tracks its underlying portfolio value. It’s not an ETF, but I think it’s another great option to diversify a portfolio.

Soul Patts has a great dividend record. It has paid a dividend every year in its existence since 1903 and it has grown its dividend each year since 2000.

I’d be happy to invest $1,000 every month into Soul Patts shares every month because it nearly always looks good value to me, has good diversification and offers something very different to a typical ASX share ETF.

Share 3: Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is one of my preferred listed investment companies (LICs).

I like it for three reasons.

The first is that it has good philanthropic credentials. It donates 1% of its net assets each year to youth mental health charities. But there are no management fees or performance fees involved with this LIC. Indeed, there aren’t many costs at all as many services are provided to Future Generation Global for free.

The second reason is Future Generation Global is diversified. It’s an ASX share itself, but it invests in the funds of fund managers who target overseas shares. It’s invested with high-quality fund managers like Magellan Financial Group Ltd (ASX: MFG). Each fund represents a whole portfolio of shares, so Future Generation Global could be invested in many dozens of different non-ASX shares.

The third reason is that it looks great value. At the moment the share price is trading at a 21% discount to the May 2020 pre-tax net tangible assets (NTA). That’s despite Future Generation Global’s portfolio outperforming the MSCI AC World Index (AUD) over the past month, six months, year, three years and since inception in September 2015.

Foolish takeaway

I’d be very happy to invest $1,000 a month into each of these ASX shares. Future Generation Global definitely looks like the best value with the big NTA discount. But Soul Patts could be the most reliable over the long-term.

More reading

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The Afterpay Ltd (ASX: APT) share price will be one to watch on Wednesday following a late announcement by the payment company.

What did Afterpay announce?

After the market close on Tuesday, Afterpay provided investors with an update on the progress it has been making in the UK market.

According to the release, the company’s UK-based Clearpay business now has over 1 million active customers using its platform after one year in the country.

In addition to this, management revealed that its customer purchasing frequency in the UK is outpacing the United States, when compared to the same stage of lifecycle. At the end of the first year, its UK customers are transacting more than 8 times per year. This compares to six times at the same stage in the United States.

This makes Clearpay one of the fastest growing ecommerce payment companies in the European market.

In addition to this, there are more than 1,100 brands and retailers offering, or in the process of offering Clearpay to their customers. Recent additions include Elemis, Bare Minerals, and ISAWITFIRST. They join the likes of ASOS, Marks & Spencers, JD Sports, Urban Outfitters, and Boohoo on its platform.

Strong growth.

As with its ANZ and US business, Clearpay has been a particularly strong performer during the COVID-19 crisis.

Management notes that during the COVID-19 period, it has experienced a strong customer adoption rate in the UK.

In May 2020, Clearpay had more than 3 million app and site visits, and its Shop Directory contributed over 1.5 million lead referrals to its retail partners. This represents a 40% to 50% increase in the weekly run rate from January and February.

Afterpay co-founder, Nick Molnar, appeared to be pleased with the progress the company is making in the UK.

He commented: “The world and the industry are changing at a rapid pace, and during this challenging time consumers are looking for ways to pay using their own money – instead of turning to expensive loans with interest, fees or revolving debt.”

“We applaud our U.K. merchants who support the payment needs of British shoppers – especially as we head into a ‘new normal’ for retail,” he added.

More reading

• Afterpay share price up 550% since February. Is it too late to buy?
• Is the Afterpay share price a boom or a bubble?
• How to try and beat the market with ASX shares
• Afterpay and 2 more ASX 200 shares to watch this week
• These 5 ASX shares were last week’s top performers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 a retiree looking to invest in dividend shares, then I think the three listed below would be great options.

This is because, despite these uncertain times, these companies look well-placed to continue paying their dividends as normal. Here’s why I would buy them for income:

BWP Trust (ASX: BWP)

I think BWP is a safe and strong dividend share to buy. I really like the real estate investment trust due to the quality of its portfolio and the fact that the majority of its properties are leased to home improvement giant Bunnings Warehouse. I believe Bunnings is one of the best retailers in the country and the risk of store closures and rental defaults is extremely low. Combined with periodic rental increases, I believe BWP is well-positioned to deliver consistent income and distribution growth over the next decade. At present I estimate that its units offer a forward 4.8% yield.

Rural Funds Group (ASX: RFF)

Another dividend share which I think is a safe option for income investors is Rural Funds. Thanks to the quality of its portfolio and its long term tenancy agreements, I believe this agriculture-focused property group is well-positioned to continue growing its distribution during the pandemic and beyond. In fact, Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.4% and 5.65%, respectively.

Telstra Corporation Ltd (ASX: TLS)

A final safe and strong option to consider buying is Telstra. I think the telco giant is a great option for income investors due to its generous yield and defensive qualities. The latter has been on display for all to see in FY 2020, with Telstra one of only a handful of companies that has been able to reaffirm its guidance during the pandemic. I believe this guidance means the company will be able to maintain its 16 cents per share dividend this year. This equates to a fully franked 5% dividend yield. 

More reading

• 2 ASX shares I plan to hold til I’m 100
• ASX 200 Weekly Wrap: ASX back in the green
• Beat low interest rates with Telstra and these ASX dividend shares
• 3 high quality ASX dividend shares for income investors to buy
• What is the price/earnings (p/e) ratio?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and 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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