If you’re looking for strong returns over the next decade, but small caps are too risky for your tastes, then you might want to take a look at ASX mid cap shares.

I think this is a great side of the market to look for investment ideas. This is because mid caps generally carry less risk than small caps, but offer stronger potential returns than large caps.

With that in mind, I have picked out four top mid cap ASX shares which I think would be top options:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to consider is Bravura Solutions. It provides software and services to the wealth management and funds administration industries. It has a number of different products in its portfolio, which are being used by many of the world’s biggest financial institutions. This includes the Sonata wealth management platform which allows users to connect and engage with their clients anytime, anywhere, via computers, tablets, or smartphones.

Collins Foods Ltd (ASX: CKF)

Another ASX mid cap share to consider is Collins Foods. It is one of the ANZ region’s largest KFC restaurant operators and also has a growing presence in Europe. It is these operations that I’m most excited about. Due to the under penetration of KFC in Europe, I believe there is a significant expansion opportunity over the next decade. And although the pandemic will inevitably slow its expansion plans, I expect it to accelerate again when the crisis passes.

Jumbo Interactive (ASX: JIN)

Jumbo is an online lottery ticket seller and the operator of the Oz Lotteries website. The company’s shares have come under pressure this year, which I believe has created a buying opportunity for investors. Especially given its target of $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.

Kogan.com Ltd (ASX: KGN)

A final mid cap ASX share to consider buying right now is Kogan. The ecommerce company has been a strong performer during the pandemic and more than doubled its sales and earnings in April. I believe the pandemic has accelerated the structural shift to online shopping and puts Kogan in a very strong position to deliver strong growth in the coming years.

More reading

• 10 top ASX growth shares to buy in June for strong returns
• Why Afterpay, Austal, Kogan, & Northern Star shares are charging higher
• Build wealth for life with these 2 ASX 200 shares
• 10 quality ASX shares to buy in June
• Where to invest $10,000 into ASX shares immediately

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, Collins Foods Limited, and Jumbo Interactive 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 4 strong ASX mid cap shares to buy with $4,000 appeared first on Motley Fool Australia.

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If you’re looking for additions to your portfolio in June, then I think the three ASX 200 shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would consider buying is Appen. Through its million-plus team of crowd-sourced experts, Appen prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. In respect to the latter, Appen helped the tech giant develop its intelligent assistant, Siri. Given how important AI is becoming, I expect demand for its services to continue to grow over the next decade. This should underpin strong earnings growth for many years to come.

Nanosonics Ltd (ASX: NAN)

Nanosonics is another ASX 200 share that I would give five-stars. The infection control specialist has been growing at a very strong rate over the last few years thanks to the growing installed base of its trophon EPR disinfection system for ultrasound probes. The beauty of this product is that as its installed base grows, so too does the recurring revenue from the consumables it requires. While this product alone could drive strong earnings growth for the next decade thanks to its massive market opportunity, there will soon be more products in its portfolio. Nanosonics is planning to launch several new secretive products targeting unmet needs in the coming years.

REA Group Limited (ASX: REA)

A final five-star stock to consider buying is REA Group. It is a digital advertising company that operates Australia’s leading property websites. It also operates real estate websites in Europe, Asia, and the United States. While market conditions are tough at the moment, I expect the tide to turn once the crisis passes. When it does, I expect the realestate.com.au operator’s earnings growth to accelerate and drive its shares higher. All in all, I think REA Group is one of the best buy and hold options on the ASX.

More reading

• What to watch on the ASX 200 next week
• Why a stamp duty change could unleash the REA Group share price
• How to be an ASX 200 share millionaire in 15 years
• Where to invest $20,000 in ASX 200 shares today
• How you can get very rich with ASX 200 shares

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 Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited and REA 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.

The post 3 five-star ASX 200 shares to buy in June appeared first on Motley Fool Australia.

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The idea of investing $50,000 for income is an important task that should be carefully thought out. You can’t just pick any ASX dividend share.

Just look at what has happened to the dividends of National Australia Bank Ltd (ASX: NAB) and Telstra Corporation Ltd (ASX: TLS). Big cuts over the past few years.

I’d only want to choose the best ASX dividend shares with rock solid income prospects:

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

Soul Patts is my favourite ASX dividend share. It has increased its dividend every year since 2000. It’s a unique income share when it comes to investing on the ASX. It has actually paid a dividend every year in its listed life going back to 1903.

It’s invested across a broad range of industries including telecommunications, pharmacies, building products and agriculture. It has already forecast an increased dividend in six months, which should bring some comfort to those who rely on dividends.

It pays the dividend out of the investment income it receives, less operating expenses, so the dividend is well funded. Some of the net cashflow is kept back to re-invest for more growth. It offers a grossed-up dividend yield of 4.5%.

WAM Microcap Limited (ASX: WMI)

It’s important to recognise that there are top ASX dividend shares outside of the ASX 20. Listed investment companies (LICs) have the ability to generate profits from capital gains made and then pay out a smoothed dividend for shareholders.

WAM Microcap invests in small shares with market capitalisations under $300 million. This hunting ground is where you can find some of the best opportunities. But you don’t need to do the work to find those ideas, you can leave it to the WAM investment team.

The LIC has been steadily growing its dividend since inception a few years ago. It currently offers a forward grossed-up dividend yield of 6.9%.

Brickworks Limited (ASX: BKW)

Brickworks is a diversified property business. I think it’s another of the best ASX dividend shares out there because it hasn’t decreased its dividend in over 40 years.

It has a high-quality group of building products businesses that supplies bricks, paving, masonry, precast, roofing and so on across Australia. It also owns a few brickmakers in the US after acquiring them recently. Long-term construction should remain a feature in the coming years.

But it’s okay that the coronavirus is causing disruption to construction right now. It can fund its reliable dividend from cashflow from the defensive industrial property trust it’s a part-owner of, as well as from its large shareholding in Soul Patts.

Brickworks currently offers a grossed-up dividend yield of 5.4%.

Rural Funds Group (ASX: RFF)

I think Rural Funds is quality ASX dividend share because of its consistent distribution growth. Management aim to increase the distribution by 4% every year.

The agricultural real estate investment trust (REIT) achieves this regular growth through contracted rental indexation and regular investing at its farms for productivity improvements for the tenant. This strategy is working particularly well with cattle farms right now.

It’s invested across a diverse array of farms including almonds, cotton, macadamias, vineyards and cattle.

It has already forecast a distribution of 11.28 cents for FY21, equating to a forward yield of 5.6%.

Future Generation Investment Company Ltd (ASX: FGX)

There are two big reasons to like Future Generation as an ASX dividend share.

The first is for its attractive grossed-up dividend yield of 7.4%. Paying a solid (and growing) dividend is one of the main aims of Future Generation. It has been steadily increasing the dividend over the past few years.

But the LIC doesn’t charge any management fees. Neither do the investment managers that Future Generation is invested in. Instead, it donates 1% of net assets each year to youth charities. I think that’s a great initiative to be a part of.

Foolish takeaway

If you don’t want to be buying or selling shares then I think the above five ASX dividend shares are great options. I’d happily invest $10,000 into each of them for long-term income. Hopefully all of them will grow (or at least maintain) the dividend during this difficult period.

More reading

• Beat low interest rates with these ASX dividend shares
• 10 top ASX growth shares to buy in June for strong returns
• How to make $1,000 a month in dividends
• 3 top ASX dividend shares to buy this June
• Why I just bought this ASX share for the long-term

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, RURALFUNDS STAPLED, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, 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 Got $50,000 to invest for income? Pick these 5 ASX dividend shares appeared first on Motley Fool Australia.

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