Category: Stock Market

If you’ve got $5,000 to invest right now, ASX 200 shares could be a great place to put it. Interest rates are at all-time lows, which means a bank account won’t give you much return right now. 

It’s a similar story with bonds, which are trading at or near zero yields as central banks scramble to stabilise the economy.

Property is expensive and $5,000 probably won’t buy you anything in the current market. That leaves us with ASX 200 shares – but which ones are in the buy zone today?

Where to invest $5,000 in ASX 200 shares immediately

If you’ve sorted out your personal finances and have $5,000 to invest, there are a lot of good value ASX 200 shares to buy right now.

I like the look of BHP Group Ltd (ASX: BHP) at the moment. Given the current uncertainty, I think large-cap shares could outperform in 2020 and beyond.

BHP is about as large as it gets with a current market capitalisation of $163 billion. Despite tensions with China, I think iron ore exports could pick up again in the coming months. China is looking to kickstart its economy and infrastructure is a great way to do that.

BHP shares climbed 8.37% higher last week but remain down 11.82% in 2020 at the time of writing.

Another ASX 200 share that could be undervalued is Westpac Banking Corp (ASX: WBC). Westpac shares are down 38.05% this year (at the time of writing), which is lower than its big four banking peers. Westpac has had its fair share of issues, but I think it could be a good relative value play. 

ASX bank shares are far from a safe bet right now. However, if the economy picks up quicker than expected, that could be good news for bank earnings and asset quality.

If you’re looking for an undervalued income share, Scentre Group (ASX: SCG) could be worth a look. The Australian real estate investment trust is down 41.51% this year and slashed its dividend, but could be a long-term buy and hold option.

More reading

• 5 ASX 200 winners and 4 losers of last week
• 3 high yield ASX dividend shares to buy right now
• How $1,000 can be enough to change your money mindset
• How to make a $50,000 passive income with ASX shares
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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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ASX dividend shares could be in the buy zone right now. The coronavirus pandemic has cast big question marks over corporate earnings in 2020.

That’s bad news in the short-term. However, I believe it presents a great chance to buy shares for a bargain price. Here are a few of my favourite companies that could be in the buy zone today.

3 ASX dividend shares to buy today

I think Telstra Corporation Ltd (ASX: TLS) could be in the buy zone. The Aussie telco is still an industry leader and its earnings may be steadier than most.

The nature of the pandemic has forced many workers home and increased demand for network infrastructure. Telstra shares are trading down 13.56% this year but that could be a bargain price. 

The company continues to invest in the future through its 5G network capabilities and could be a more nimble technology company in the future.

I like the look of another ASX dividend share at the moment, Altium Ltd (ASX: ALU). Altium shares have climbed 3.40% this year but are still yielding 1.06%. I wouldn’t be surprised to see a temporary dividend cut, but the software group could be a long-term buy for both income and growth.

Finally, I think Wesfarmers Ltd (ASX: WES) is an ASX dividend share that’s worth keeping an eye on. Wesfarmers is looking to refine its current business model by restructuring its retail arm and is sitting on a lot of cash right now.

That could be used for further acquisitions or distributed to shareholders in the coming years. Either way, I think Wesfarmers could be a stable ASX dividend share to buy and one that is currently yielding 3.94% per annum.

Foolish takeaway

If you’ve got $5,000 to invest, I think these are just some of the ASX dividend shares that are worth a look.

More reading

• 3 high yield ASX dividend shares to buy right now
• How I would build a $130,000 ASX dividend portfolio right now
• How to make a $50,000 passive income with ASX shares
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately
• 3 ASX dividend shares I would buy to beat low rates

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Altium and Wesfarmers 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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It’s fair to say the National Australia Bank Ltd (ASX: NAB) share price hasn’t had a great run in 2020. In fact, the Aussie bank’s shares have fallen 37.72% while the S&P/ASX 200 Index (ASX: XJO) is down 17.76% this year.

So, is the Aussie bank’s share price in the buy zone or should you steer clear in 2020?

What’s been happening to the NAB share price?

The ASX bank shares are under pressure this year amid the coronavirus pandemic. The public health response has forced Aussies to stay home and many businesses have shut down.

That’s put pressure on the economy, Aussie households and corporate earnings. The big banks underpin the economy and could feel the blow of a recession harder than most. That has spooked investors in 2020 and sent the NAB share price falling lower.

NAB reported a $1,313 million half-year net profit and cash earnings of $1,436 million. That means the ASX bank’s cash earnings slumped 51.4% on the prior period or 24.6% excluding notable items.

NAB also announced plans to raise up to $3.5 billion via a fully underwritten institutional share placement of $3 billion and a non-underwritten Share Purchase Plan (SPP) to raise approximately $500 million.

The bank raised the funds at $14.15 per share, which represented an 8.5% discount to its last close price. However, the NAB share price is now trading at $15.34 per share, so is it back in the buy zone?

Is the ASX bank back in the buy zone?

I think there’s more uncertainty ahead for the ASX banks in 2020. While the government stimulus measures are helping to prop up the economy, there are question marks over what happens in September and beyond.

If restrictions continue to ease, we could see the NAB share price bounce back quickly. With the economy up and running, the economic burden on businesses and households could be eased quicker than expected.

I think NAB is a speculative buy in the current climate but could be a long-term success if you’re willing to buy and hold.

More reading

• 3 ASX 200 shares to watch this week
• 2 quality ASX shares to buy for long-term growth
• 5 ASX 200 winners and 4 losers of last week
• 5 things to watch on the ASX 200 on Monday
• Why these ASX stocks will be under the spotlight on Monday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Is the NAB share price a buy today? appeared first on Motley Fool Australia.

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It was a bumper week for ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) jumped 1.71% higher.

Last week I was watching Northern Star Resources Ltd (ASX: NST), Woodside Petroleum Limited (ASX: WPL) and Wesfarmers Ltd (ASX: WES).

The Northern Star share price jumped 3.06% higher as investors looked to the safety of gold amid continued volatility. Woodside shares climbed as OPEC slashed production – a potential sign that the oil price war is coming to an end. Wesfarmers shares gained 2.53% despite announcing 75 Target store closures on Friday.

After a big week for last week’s top picks, here are the 3 ASX 200 shares that I’ll be keeping my eye on in the week ahead.

3 ASX 200 shares to watch this week

I think it’s worth watching the CSL Limited (ASX: CSL) share price this week. The biotech giant’s shares fell 3.61% lower last week and are trading at $290.93 right now.

CSL shares have had strong support around the $290-300 per share mark. I think earnings could still be steady in 2020 given CSL’s operations are spread far and wide across the healthcare sector.

Another ASX 200 share to watch is A2 Milk Company Ltd (ASX: A2M). The Kiwi dairy group’s shares fell 2.88% last week but remain up 22.80% in 2020. 

I think investors are wondering how to value the dairy company right now. Tensions with China may threaten more exports than just barley and a2 Milk generates significant revenue from its Asian sales channels.

My final ASX 200 share to watch this week is Stockland Corporation Ltd (ASX: SGP). In contrast to the other 2, Stockland shares rocketed 13.70% higher last week.

Many of the Australian real estate investment trusts (REITs) jumped in value last week as Aussies anticipated the easing of coronavirus restrictions. That’s good news for the retail REITs and their tenants, and could provide a much-needed earnings boost in 2020.

The Stockland share price is worth keeping an eye on this week to see if there’s more growth in store as the Aussie economy begins to re-open.

More reading

• Is the NAB share price a buy today?
• 2 quality ASX shares to buy for long-term growth
• 5 ASX 200 winners and 4 losers of last week
• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 growth shares I want to buy for my portfolio

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk and Wesfarmers 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 ASX 200 shares to watch this week appeared first on Motley Fool Australia.

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In turbulent times like these, expanding your portfolio with quality, diversified, well-priced ASX shares with a proven track record is, I believe, a good way to achieve portfolio stability. Not to mention, help provide the foundation for strong shareholder returns over the next decade and beyond. 

Here are two S&P/ASX 200 Index (ASX: XJO) shares which I believe meet these criteria: Ansell Limited (ASX: ANN) and Brickworks Limited (ASX: BKW).

Ansell

Ansell is involved in the development, manufacturing and sale of gloves and protective personal equipment in the industrial and medical markets.

The manufacturer reported in a business update in late March that it has been experiencing high demand for its hand and body protection products, as these products are industry certified for protection against infections such as the coronavirus. This includes its single-use examination gloves and surgical gloves. These products are very likely to continue seeing strong demand over the next few months as the crisis continues. Although there has been reduced demand for some of its industrial products, the overall demand for Ansell’s product portfolio has been higher over the past few months.

This increased demand has helped drive up its share price. Despite an initial dip in its share price in February and the middle of March, at the time of writing Ansell was at a 52-week high of $34.82.

Even with this recent share price increase, I still think that Ansell offers a relatively good buying opportunity for investors with a long-term investment horizon.

Ansell’s significant size and geographic spread helps the company maintain a very strong competitive position. Also, new product lines position Ansell well to generate growth over the next few years, supported by a strong research and development program.

Brickworks

Brickworks has gained a strong reputation as one of the most consistently performing businesses on the ASX over the past few decades, underpinned by its diversification across a number of divisions.

The group’s Building Products division manufactures and distributes a range of bricks and other masonry products. Its property division owns a significant holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), providing the company with a strong and steady dividend income stream.

Brickworks also has a significant stake in an industrial property trust with Goodman Group (ASX: GMG), which builds and operates a range of property for industrial businesses.

Although there is always the risk of a further downturn in the building industry, I believe that the significant fall in its share price since late February by more than 30%, now offers investors a relatively good buying opportunity.

Brickworks shares also currently offer an attractive trailing dividend yield of 4.27%, which grosses up to 6.1% with full franking.

More reading

• ASX 200 shares to buy for growth and income
• Is the NAB share price a buy today?
• 3 ASX 200 shares to watch this week
• Replace your term deposit with these dividend shares
• 5 ASX 200 winners and 4 losers of last week

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ansell 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.

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At the weekend I looked at how $20,000 investments in a number of ASX shares have fared over the last decade.

Given the success of these investments, today I thought I would look at a few shares which I think investors ought to invest $20,000 into today for the next 10 years.

Here why I think these three top ASX shares could provide strong returns for investors:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a fintech company providing software and services to the wealth management and funds administration industries. The key product in its portfolio is the Sonata wealth management platform. Sonata allows users to connect and engage with their clients anytime, anywhere, through computers, tablets or smartphones. It is proving to be very popular with financial institutions due to the way it simplifies legacy client systems into one unified customer-centric solution. Also supporting its growth in the future will be the recent acquisitions of Midwinter and Finocomp. These have strengthened its offering and opened the company up to new and lucrative markets.

Jumbo Interactive (ASX: JIN)

Another option for that $20,000 investment is Jumbo. It is an online lottery ticket seller and the operator of the Oz Lotteries website. Its shares have fallen heavily in recent months due to concerns over its slowing growth. However, this has been caused by an increased investment in the future growth of its software-as-a-service (SaaS) business. I think this selling has been overdone and created a buying opportunity for investors. Especially when you consider its massive market opportunity. Last year management noted that approximately 7% of the world’s lottery tickets are sold online. This implies that 93% of a ~US$300 billion global market has yet to transition online. Jumbo is aiming to grow its ticket sales to $1 billion per annum by FY 2022, which is still only scratching at the surface of the overall market.

NEXTDC Ltd (ASX: NXT)

Another ASX share for investors to consider investing $20,000 into is NEXTDC. I think it is a great way to gain exposure to the rapidly growing cloud computing market. This is because NEXTDC’s world class data centres have been experiencing a material increase in demand for capacity over the last few years. And with more infrastructure expected to shift over to the cloud in the next decade, it looks well-positioned to profit greatly.

More reading

• 3 explosive ASX growth shares to buy
• Why this ASX infrastructure company could help protect your portfolio in a downturn
• 3 mid cap ASX growth shares to buy for monster returns
• 1 ASX growth company I’d buy with $2,000
• Why I’d invest $1,000 in this ASX tech share today

James Mickleboro owns shares of NEXTDC 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 has recommended Bravura Solutions Ltd 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.

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The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch today as news broke on Saturday that the company had increased its stake in Cadente Copper to 20%. This cements its right to preserve its stake through future capital raisings and moreover, to participate in debt issues. The company is exploring a copper-gold porphyry in Peru.

Argentina and Ecuador are also part of Fortescue’s exploration program. 

The South American investment logic

I have worked for Andrew Forrest in the past. Like anybody else, I have worked out that when he sees something in the distance in mining, then he is probably correct. 

He went against the odds at Murrin-Murrin with the laterite nickel-cobalt mine, which required a massive and highly technological processing operation. In the past 4 years, nickel has been the stand out performer in base metals. He also went against the odds in the Pilbara mining low-grade ore using surface excavation machines. This was unheard of. 

Regardless of the current situation, copper is likely to see strong demand in the decade to come on the back of its increase in use for electric vehicles and batteries, as well as continued growth in China and India. As for gold, the precious metal is likely to see sustained high prices. The combination of uncertainty, large volumes of quantitative easing, and low interest rates work in unison to keep gold high. 

The Fortescue track record

It is hard to recall a week when Fortescue wasn’t up to something new or visionary over the past decade. At the recent Macquarie Conference, it covered its future plans. The US$1.3 billion Eliwana project. The US$2.6 billion Iron Bridge project. A US$800 million investment in energy infrastructure, including 275 kilometres of transmission lines and 150 megawatts of solar-powered generation. As always, Fortescue supports local suppliers and local contractors. 

Current position

Over the past decade, Fortescue has achieved some truly impressive compound annual growth rates (CAGR). These include 14.1% for sales, 16.8% for cash flow, 17.6% for earnings per share, and a share price CAGR of 10.8%.

At the time of writing, Fortescue is trading at a very low price-to-earnings ratio of 5.49. This is a level well below its 10-year average of 10. At this low price, you also get a company that has a dividend CAGR of 36.3% and a 12-month trailing dividend yield of 7.36%.

Regardless of any sabre rattling that goes on between the great powers, only Australia can fulfil the iron ore quantities and qualities required by China. Over the medium term, when the current tensions have subsided, I believe Fortescue will still be one of the engines of the Australian economy. 

More reading

• Here are 2 ASX dividend shares with yields over 10%
• Top brokers name 3 ASX shares to sell next week
• How to make a $50,000 passive income with ASX shares
• ASX 200 drops 1% on Friday
• ASX 200 drops 0.4%, Chinese threat to Australian iron

Motley Fool contributor Daryl Mather owns shares of Fortescue Metals Group Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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