Last week the prime minister unveiled an infrastructure spending package designed to fast-track approvals for 15 major projects, plus an additional $1.5 billion in spending. Included in the 15 large projects is the expansion of Olympic Dam, owned by BHP Group Ltd (ASX: BHP). Moreover, it includes a $10 billion freight rail project, the Marinus interconnector, and a range of other high-profile works.

This is not counting the spending already underway in Western Australia and other states. Aside from the potential to create jobs, the spending will also fund many construction and engineering companies. Below is a range of companies I have on a watchlist as potential beneficiaries of this spending. 

Utility infrastructure

Service Stream Limited (ASX: SSM) is a great infrastructure services company. It grew out of the communications sector due to NBN spending. Today they are very active in the water, electricity and gas industries through acquisition and growth. Service Stream also has a 30% stake in the D4C consortium that has a 10-year contract with Sydney Water.

Parts and materials

No matter how this plays out, Boral Limited (ASX: BLD) is likely to see some benefit. Boral manufactures and sells infrastructure and construction materials in Australia and internationally. Thus, providing it access to stimulus packages globally. Boral has seen some hard years lately with stagnant sales and earnings growth. However, in recent days there has been a lot of excitement around the company.

Boral recently appointed a new CEO. One who, controversially, has a lot of experience from within the industry. In addition, Seven Group Holdings Ltd (ASX: SVW) recently took a 10% stake and is likely to take a board seat. Lastly, the company is undertaking a major review with Macquarie Capital and Flagstaff Partners. 

Civil contractors

Of all of the civil engineering companies in Australia, I am leaning very strongly towards NRW Holdings Limited (ASX: NWH) as a key beneficiary. The approval’s fast track will impact the company’s Olympic Dam project contract. It is also likely to fast track a decision on the Bunbury Outer Ring Road project. This project is slated to cost $852 million in total and NRW is 1 of 2 proponents accepted to bid. 

Foolish takeaway

The infrastructure spending stimulus across Australia is likely to create a mini-boom for construction, engineering and materials companies. While these 3 are the most probable beneficiaries, there will likely be a range of ASX companies lifted in the next 6 – 12 months.

More reading

• Here are 3 Australian share market trends to watch this week
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• ASX 200 Weekly Wrap: ASX back in the green
• 2 blue chip ASX 200 dividend shares to buy next week
• Where to invest for reliable dividend shares

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Service Stream 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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In my opinion, JB Hi-Fi Limited (ASX: JBH) shares could be one of the best ASX shares to buy right now.

It’s a big call, especially with top growth shares like Afterpay Ltd (ASX: APT) rocketing higher in 2020.

But here’s why I think the Aussie retailer could be a strong ASX share to buy and hold for the long-term.

Defensive earnings

JB Hi-Fi has already proven it can be a defensive buy when times are tough. The S&P/ASX 200 Index (ASX: XJO) has slumped 11.75% in 2020, while the JB Hi-Fi share price has climbed 4.7% higher.

JB Hi-Fi has been a beneficiary of shifting consumer spending habits throughout the coronavirus pandemic. Strong government stimulus during the crisis has helped to prop up the economy and stimulate some discretionary spending.

This stimulus, combined with a shift towards work from home, means JB Hi-Fi has seen strong electronics sales and enjoyed solid defensive earnings, at least in 2020.

The JB Hi-Fi share price is actually up 70.1% since its low on 25 March and is now closing in on its record high of $46.09 per share.

Impressive online presence

I think JB Hi-Fi’s strong online presence is absolutely critical to its ability to compete in the Aussie retail sector moving forward. In my opinion, JB Hi-Fi has a solid user interface and user experience, as well as a strong digital marketing strategy.

That’s good news for the JB Hi-Fi share price, particularly if we see a continued decline in brick-and-mortar retail stores in coming decades.

Strong dividend share

The JB Hi-Fi share price has experienced strong capital gains in recent years, on top of being a solid dividend share.

Shares in the Aussie retailer are yielding 3.78% right now, which in my view is a good return in the current market.

There aren’t many ASX shares out there with a solid base for the future, capital gains and dividends. That could make investors look closely at investing in JB Hi-Fi as a diversification option in their portfolios.

Foolish takeaway

The JB Hi-Fi share price has been rocketing higher in recent months, but there could be more growth on the way.

I like the technical environment despite potential headwinds for Aussie retail. I wouldn’t rely on JB Hi-Fi as a defensive share in the future, but more spending on home office setups could be good news for the short to medium-term.

There’s no magic answer to investing in ASX shares. All we can do is stick to a buy-and-hold strategy and remember we’re investing in companies with long-term prospects, not just buying and selling shares.

The JB Hi-Fi share price is trading at a price-to-earnings ratio of 17.65 right now, so it might not be a cheap buy. However, if you like capital gains and dividends, I think it could be one to add to the watchlist.

More reading

• Here are 3 Australian share market trends to watch this week
• Is the a2 Milk share price a buy after falling nearly 5% on Friday?
• The NAB share price has fallen 24%. Should you buy?
• James Hardie share price in spotlight as it upgrades profit guidance
• ASX 200 Weekly Wrap: ASX back in the green

Motley Fool contributor Ken Hall 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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