It’s hard to know whether to buy or sell ASX 200 shares right now. The S&P/ASX 200 Index (ASX: XJO) has been volatile in recent days as investors worry about the recent bull run.

But despite the share market heating up, now is not the time to panic.

Here are a few things that I think are worth considering if you’re nervous about buying right now.

3 reasons to buy ASX 200 shares right now

The first thing to remember is why you’re investing in the first place. While it could be to make a quick buck, it’s most likely to build long-term wealth and enjoy a nice retirement.

That means that stepping out of the market while ASX 200 shares are volatile may not be the best strategy.

For instance, many investors missed out on huge winners like Afterpay Ltd (ASX: APT) because they cashed out of the market.

There are many Aussie companies that have shed billions in value this year. That could present some great buying opportunities right now.

The coronavirus pandemic hit global markets hard and ASX 200 shares like Woodside Petroleum Limited (ASX: WPL) have crashed lower in 2020.

That leads me to my second point: market timing.

In the long-run, it’s just not possible to time the market correctly. It’s easy to say that but not follow through, especially in a bear market. However, if you’re investing for the long-term, you should drown out the noise.

Consistently investing in ASX 200 shares is the best way to achieve long-term returns. That means you can invest for your time horizon in the decades ahead and not worry about current movements.

Transaction costs and taxes are two factors that can deplete your after-tax returns which investors often forget.

A final reason to invest in ASX 200 shares right now is that there aren’t many other good options available.

Interest rates are at record lows which means savings accounts and bonds don’t offer much yield.

Aussie property tends to be very expensive which means shares are really one of the few high-yield options available right now.

Foolish takeaway

These are just a few reasons to buy ASX 200 shares in the current market rather than not investing at all and holding cash.

More reading

• Is $1,000 invested in AGL Energy shares a smart investment?
• Will the Afterpay share price hit $100 in 2020?
• Why Afterpay and these ASX shares just stormed to new highs
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 jumps almost 4%, Webjet share price soars

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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If you’re looking for a source of income from dividend shares, then I think Commonwealth Bank of Australia (ASX: CBA) is a great option to consider.

I believe it is the highest quality bank on the Australian share market and expect its shares to provide investors with a very generous yield in 2021 (even after factoring in a dividend cut).

However, given that a lot of investors already have meaningful exposure to the banks, it might not be suitable for everyone.

In light of this, I have picked out three ASX dividend shares which I think would be quality alternatives to the banks. They are as follows:

Aventus Group (ASX: AVN)

I think Aventus could be a good dividend option. It is a retail property company specialising in large format retail parks across Australia. Aventus’ rental income has a reasonably high weighting towards everyday needs, with homewares, electrical, furniture, bedding and hardware making up the balance. I think this is a good and robust mix and leaves it well-placed for growth over the coming years. In respect to its distribution, Goldman Sachs recently forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~7.9% distribution yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying instead of the banks is Dicker Data. It is a leading distributor of information technology products. It has delivered consistently solid earnings and dividend growth over the last few years thanks to its strong market position, growing demand, and the addition of new vendors. The good news is that I remain confident that this growth can continue over the coming years. And based on the high levels of insider buying it continues to report, its management team does as well. This year Dicker Data intends to pay a 35.5 cents per share. This represents a fully franked ~5% yield.

Wesfarmers Ltd (ASX: WES)

Lastly, I think this conglomerate is a dividend share to buy. Wesfarmers is the company behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. In addition to its retail exposure, the company owns a number of businesses in the chemicals and industrials industries. It also has a hefty cash balance which I suspect could be used to make earnings accretive acquisitions in the near term. Combined, I believe Wesfarmers is well-placed to grow its earnings and dividends at a solid rate over the coming years. At present I estimate that its shares offer a forward fully franked ~3.5% dividend yield.

More reading

• 3 high yield ASX dividend shares for income investors
• ASX 200 jumps 3%: CBA rebounds, Afterpay hits a new record high
• Why I would buy Wesfarmers and these ASX dividend shares
• Can ASX big banks generate an attractive sustainable dividend yield from FY21?
• 2 of the best ASX dividend shares for retirees to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 3 high quality dividend shares to buy instead of the big four banks appeared first on Motley Fool Australia.

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