Monday morning’s stock rally lost steam towards the close, with the S&P 500 and Nasdaq turning negative and the Dow wiping out much of its earlier gains. The 30-stock index had been up as much as 2.2%, or 564 points, earlier in the day.
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One notable advocate of buy and hold investing is legendary investor Warren Buffett.
Mr Buffett has famously stated that his favourite holding period is forever. And given the success he has had over several decades, it can pay to listen to his advice.
Three quality ASX blue chip shares that I think Warren Buffett would approve of are listed below. Here’s why I think they could be top buy and hold options:
I think this global biotech company would tick a lot of boxes for Mr Buffett. CSL has a high return on equity, talented management team, and long track record of generating strong earnings growth and returns for shareholders. It also has a very positive long term outlook thanks to its in demand therapies and its high level of investment in research and development.
Another company which I think could be a Buffett share is REA Group. It is the leading property listings company in the ANZ region and has a number of growing businesses in other regions. While its performance is likely to be impacted by a reduction in listings because of the pandemic, I’m confident that this is just a short term headwind and its growth will accelerate once the crisis passes. So with its shares down 10% from their high, now could be a good time to consider a long term investment.
A final share which I think could interest Mr Buffett is SEEK. This is due to the job listings company’s dominant position in the ANZ market and its growing China-based business. I believe these businesses have positioned SEEK perfectly to grow its earnings at a very strong rate over the next decade. Management certainly sees things this way. It has set itself an aspirational revenue target of $5 billion later this decade. This will be a massive increase on the revenue of $1,575 million it expects to report in FY 2020.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended REA Group Limited and SEEK 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 high quality blue chip ASX shares Warren Buffett might buy appeared first on Motley Fool Australia.
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Fortunately for income investors in this low interest environment, the Australian share market is home to a large number of dividend-paying companies.
Three ASX dividend shares which I think are in the buy zone right now for income investors are listed below. Here’s why I would buy them:
Dicker Data is a wholesale distributor of computer hardware and software. Due to an increasing number of vendor relationships and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a strong rate over the last five years. This has continued during the pandemic thanks to the work from home initiative and the shift to the cloud. As a result, Dicker Data intends to lift its fully franked dividend by 31% to 35.5 cents per share in FY 2020. Based on the current Dicker Data share price, this represents an attractive 5% dividend yield.
Another dividend share that I would buy is Telstra. With the telco giant’s medium term outlook looking the brightest it has been in a long time, I think now is a great time to invest. This improving outlook is due to its T22 strategy, rational competition, and the easing of the NBN headwind. Combined, I believe a return to earnings and dividend growth could be on the cards in the coming years. For now, though, I believe its 16 cents per share dividend is sustainable. Which based on the latest Telstra share price, equates to a fully franked 4.6% dividend yield.
A final option to consider buying is the Vanguard Australian Shares High Yield ETF. This exchange traded fund gives investors exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the likes of the big four banks, mining giants, and Telstra. At present I estimate that its units offer a forward dividend yield of at least 4.5%.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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 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.
The post Why I would buy Telstra and these ASX dividend shares appeared first on Motley Fool Australia.
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On Tuesday, three of the largest banks in the U.S. — JPMorgan Chase, Wells Fargo and Citi — kick off earnings season when they report their quarterly results. Moody’s Jeffrey Berg expects financials to report “varied, and in some instances, sharp declines in earnings” due to coronavirus and collapsing oil prices. Berg joins The Final Round to discuss what factors he’s focused on beyond the headline numbers.
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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note and stormed notably higher. The benchmark index climbed 1% to 5,977.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
The ASX 200 looks set to give back some of yesterday’s gain on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 47 points or 0.8% lower. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones trade flat, the S&P 500 drop 0.9%, and the Nasdaq sink 2.1% lower.
Energy producers Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.4% to US$39.56 a barrel and the Brent crude oil price dropped 2.4% to US$42.22 a barrel. Oil prices fell ahead of the next OPEC meeting.
It could be a difficult day of trade for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) on Tuesday after their U.S. counterparts sank lower. Overnight on Wall Street the technology-focused Nasdaq index was up as much as 1.9% before ending the day 2.1% lower. Investors appear to have been taking profit off the table after the index broke through the 11,000 points mark for the first time.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price edged higher. According to CNBC, the spot gold price rose 0.15% to US$1,804.70 an ounce after coronavirus cases continued to increase
The AMP Limited (ASX: AMP) share price will be on watch today after the financial services company revealed that it has been downgraded by Standard and Poor’s. The ratings agency has lowered its rating on AMP from BBB+ to BBB. It is also on credit watch with negative implications.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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 Xero. The Motley Fool Australia owns shares of Appen Ltd. 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 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.
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