If you’re currently in the process of building a retirement portfolio, then you might want to take a look at the shares listed below.

I believe they are great options for investors looking for a combination of growth and income. They are as follows:

Coles Group Ltd (ASX: COL)

The first share I would consider for a retirement portfolio is Coles. I think the supermarket giant would be a great fit due to its defensive earnings, strong market position, and its refreshed strategy. This strategy is aiming to deliver $1 billion in cumulative savings by FY 2023 through efficiencies and the use of automation. Combined with expansions and its long track record of same store sales growth, I expect Coles to deliver solid earnings and dividend growth over the next decade.

Ramsay Health Care Limited (ASX: RHC)

I think Ramsay Health Care would be a good option for a retirement portfolio. While I expect its growth over the short term to be challenging, I believe its long term outlook is very positive. This is due to its world class network of private hospitals and their exposure to the growing demand for healthcare services. In addition to this, Ramsay has a penchant for making earnings accretive acquisitions and I wouldn’t be surprised if it were lining up more at present. Overall, I believe it can deliver strong total returns for investors over the long term.

Rural Funds Group (ASX: RFF)

Another option to consider is this real estate investment trust (REIT). It has a focus on agricultural assets and owns a wide range of properties across several different industries. This includes cattle, wine, and almond production. Given the quality of its assets, its use of rental indexation, and its ultra-long tenancy agreements, I believe the company is well-positioned to deliver solid income growth over the next decade and beyond. This bodes well for its distributions, which management is aiming to grow by at least 4% per annum over the long term. This could make it a top option for a retirement portfolio.

More reading

• 3 exciting small cap ASX healthcare shares to watch
• 2 ASX healthcare shares to buy for long-term growth
• 3 fantastic ASX 200 shares to buy right now
• Coles shares and 2 other ASX 200 companies to buy in the current market
• Ramsay Health Care and 1 other ASX share I would buy for both growth and income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Ramsay Health Care 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 Altium Limited (ASX: ALU) share price dropped sharply by more than 40% during the initial phase of the coronavirus pandemic from mid-February to mid-March. Since then its share price has regained just over half of those losses.

Altium has continued to perform reasonably well from a business perspective throughout the crisis, despite some short-term challenges.

Is the Altium share price a buy right now?

What is compelling about Altium’s business model?

Altium designs software which enables engineers to produce printed circuit boards for a broad range of electronic devices. These include everything from computers to cars and a growing range of devices that make up the ‘Internet of Things’.

Altium’s software tightly integrates into its customers’ systems and processes. This results in high customer switching costs. It also helps to lift Altium’s pricing power and recurring subscription revenue. In addition, Altium benefits from high product margins and operating leverage.

I feel that all of these factors make Altium an attractive share to invest in.

How has Altium performed recently?

In a May update, Altium informed the market that it may not reach its aspirational goal of US$200 million in total revenue during FY 2020. Altium still anticipates headwinds up to the end of June. Ongoing lockdown restrictions due to COVID-19 are having an impact in particular in the United States and Western Europe.

The company has also recently experienced challenges to sales, particularly at the smaller end of its target market. This includes signs of distress amongst some start-ups and other smaller customers.

However, on a positive note, the wider electronics industry appears to be holding up relatively well during the pandemic. Engineers have been utilising the excess time and capacity due to the slowdown in manufacturing to become more active in prototype designs. This trend is definitely benefiting Altium.

Altium continues to accelerate the rollout of its new Altium 365 cloud platform. It also reported that it remains in a strong financial position with a current cash balance in excess of US$77 million.

Is the Altium share price in the buy zone right now?

With Altium’s share price down significantly from pre-coronavirus levels, I think that this provides investors with a reasonably good buying opportunity. I believe that any further challenges that Altium may face are well factored into its current share price. In fact, I feel that the market may have over-exaggerated Altium’s current issues.

Altium’s long-term growth prospects continue to look attractive. The growing number of smart connected devices is likely to lead to continued demand for Altium’s products over the next decade.

More reading

• Why I think Xero shares are a great long-term buy
• How to become wealthy by investing $1,000 into ASX shares
• 3 ASX shares to buy and hold for the next decade
• Is the Altium share price the steal of the century?
• The most explosive ASX tech shares you can buy today

Phil Harpur owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium. 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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If I had $500 to invest into my first ASX shares I’d pick one of the two ideas in this article.

Investing in ASX shares is one of the best ways to grow your wealth in my opinion. But it can be difficult to know where to start.

There are thousands of different things you can invest in on the ASX. You could pick an exchange-traded fund (ETF), a managed fund, a listed investment company (LIC) or go straight for individual shares.

I think diversification is important for beginner investors. If you invested your first $500 into Commonwealth Bank of Australia (ASX: CBA) shares then 100% of your portfolio would be in one share.

It could be a wise idea to choose an investment that provides good diversification straight away. Some investments give exposure to a portfolio with the one pick. That’s one of the main reasons why LICs are so attractive.

With that in mind, here are two ASX shares I’d happily buy with my first $500:

Share 1: MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is a great LIC run by Chris Mackay, the co-founder of Magellan Financial Group Ltd (ASX: MFG).

It aims to invest in great businesses listed internationally. Not many ASX shares would count among the best businesses in the world.

It’s invested in shares like Visa and Mastercard. Those two global payment businesses actually make up around a third of the portfolio. I think they have good growth runways with the shift away from physical cash payments to online shopping and contactless payments.

MFF Capital has been a solid ASX share over the past five years. The MFF Capital share price has risen by 54% since June 2015 despite the big selloff caused by COVID-19.

I think MFF Capital is worth owning because it has a diversified portfolio. Some of its other investments include Home Depot, CVS Health, Microsoft and some international banks.

At the end of May 2020 MFF Capital’s portfolio was 46.4% net cash. That means it’s well protected if the market were to fall again. It also means it has a good cash pile to buy beaten-up shares if that opportunity comes.

Share 2: Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is another overseas-focused LIC. The ASX share invested in a range of funds that invest in overseas shares. The fund managers of those funds work for free so that Future Generation Global can donate 1% of its net assets per year to youth mental health charities.

Some of the fund managers it’s invested with include Magellan, Cooper Investors, Marsico Capital Management, Caledonia and Munro Partners. Each fund manager’s fund comes with its own portfolio of shares. So Future Generation Global’s underlying portfolio is very diversified.

At the end of May 2020, Future Generation Global’s gross investment performance was showing a clear outperformance of the MSCI AC World Index (AUD). Over the past three years, Future Generation Global’s 10.9% per annum portfolio performance outperformed the index by 1.7% per annum. Over the prior six months the index declined 4.2% whilst the Future Generation Global portfolio returned 1.2%.

If you’re looking to buy the shares at a good price then you’re in luck. The May 2020 net tangible assets (NTA) per share was almost $1.48, which compares to today’s share price of $1.16. That’s a 22% discount, which is very large considering the regular outperformance.

Foolish takeaway

I really like both of these ASX shares for the global exposure they provide, the quality investors involved and the attractive valuation on offer. At the current prices it’s hard to pick a favourite, I’d really like to buy both.

More reading

• Got $20,000? These are the ASX shares I’d buy during COVID-19
• Is this the start of a second COVID-19 share market crash?
• These ASX shares are the best way to invest overseas
• 3 ASX shares to buy for the big shift to contactless payments
• How to become a millionaire before your parents with ASX shares

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd. 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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Currently, most Australian bank accounts are paying less than 2% interest. It’s really not much and it will be hard to get rich on bank interest. ASX 200 dividend shares, on the other hand, come with a number of advantages.

Why buying ASX 200 dividend shares is a better option 

Firstly, dividend shares usually come at least partly franked. This means some or all of the taxes you need to pay on those dividends are already paid for you. Bank interest, on the other hand, does not come with franking credits so the whole amount is counted as taxable income.

Additionally, dividend shares can offer a higher return than bank interest. Currently, there are a number of ASX 200 shares yielding between 3% and 6%, or higher. These returns could help you to build wealth much faster than relying on minimal bank interest.

Further, dividend shares offer another advantage, capital appreciation. As the companies that you are invested in grow, you can expect to see the share price rise over the long term. While this does not provide an immediate result if you buy for dividends, you can sell the shares later and usually see an additional return in the form of capital appreciation. 

Sound convincing? Check out the ASX 200 dividend share options below and see whether they fit your portfolio preferences.

BHP Group Ltd (ASX: BHP)

The BHP share price is $36.25 at the time of writing. BHP has proven itself over the years as a solid payer of dividends to shareholders. In 2010, BHP paid dividends of 87 cents per share. Fast forward to 2019 and BHP paid dividends of $1.33. That’s an increase of 52.87% in dividends in less than 10 years. Currently, BHP sits on a trailing fully franked dividend yield of 6.05%.

Currently, BHP produces iron ore, coal, copper, nickel and petroleum. It does this from high-quality assets in Australia, the UK, North America, South America, Africa and the Caribbean. It currently has a number of projects under development and has, as announced so far, continued these despite the recent coronavirus pandemic.

Brickworks Limited (ASX: BKW)

The Brickworks share price is $15.40 at the time of writing. Brickworks has been listed on the ASX since 1962 and its origins date back to 1934. It has grown or maintained its dividend every year since 1976.  Despite the effects of several recessions and other market turmoil over the last 44 years, Brickworks has an outstanding track record of paying dividends to shareholders. Currently, Brickworks trades on a fully franked dividend yield of 3.96%. In 2010, Brickworks paid dividends of 40 cents. Last year, however, the company paid dividends of 57 cents. This equates to an increase of 42.5% over the period. 

Brickworks is a building materials, construction and investment group with exposure to the residential and commercial property markets in Australia and the US. According to a recent announcement, Brickworks is currently Australia’s largest brick manufacturer with a market position in every state. It also produces masonry, roofing, walling and flooring products. Brickworks also has a $710 million stake in a joint venture property trust with Goodman Group (ASX: GMG). This generates a rental income of 6% per year and last year provided a capital appreciation of 11%. Additionally, Brickworks has a 39.4% share in investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) worth $1.8 billion. In turn, this company owns a 44.1% stake in Brickworks. 

Transurban Group (ASX: TCL)

At the time of writing, the Transurban share price is $14.83. Transurban listed on the ASX in 1996 and was founded to build the Citylink toll road in Melbourne. Transurban has paid a dividend every year since 2002. In 2010, Transurban paid 25 cents in dividends. Going forward to 2019, Transurban paid a dividend of 61 cents. This was an increase of 144%. Transurban trades on a fully franked trailing dividend yield of 4.12%.

Transurban has a stake in 18 toll roads, tunnels and bridges in Australia, the US and Canada. This gives it a diversified income with the company receiving tolls from sources in 3 different countries. Transurban has continued its expansion projects during the coronavirus shutdowns. It currently has 3 projects underway with 2 set to be completed in 2021 and one set to be completed in 2023. These projects will deliver new revenue streams as operating rights on existing toll roads begin to age. Additionally, Transurban is currently pursuing more opportunities in Australia and the US. 

Foolish takeaway

With bank interest low at present, investors can realise other opportunities to earn income such as through ASX 200 dividend shares. Additionally, this income can come with franking credits and can provide the potential for capital appreciation. While some may see bank deposits as a safe bet, with returns of less than 2% it is likely that their capital will get swallowed up by inflation. The high-quality ASX shares identified could provide ongoing dividends higher than bank interest. These can be coupled with long-term capital gains. This writer thinks you should forget bank interest and invest in high-quality dividend shares instead. 

More reading

• ASX 200 down 0.1%: Carsales update impresses, a2 Milk surges higher
• Why I would buy CSL and these ASX blue chip shares
• 2 unloved ASX shares that could stage a big turnaround
• 3 fantastic ASX 200 shares to buy right now
• 2 ASX blue chip shares I think every portfolio should hold

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of Transurban 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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If you’re looking for a way to diversify your portfolio to offer some protection from market shocks and optimise your returns, then I think the two exchange traded funds (ETFs) listed below could be worth considering.

As well as giving investors exposure to a wide range of shares in different markets and industries, I believe these ETFs also have the potential to provide strong returns for investors in the future. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you were to buy only one ETF, I would make it the BetaShares NASDAQ 100 ETF. This is because this ETF gives investors access to the 100 shares that are trading on the famous NASDAQ 100 index. These include countless household names such as Amazon, Facebook, Microsoft, and Netflix.

One area of the market which is not represented on the index is the financial sector. This could make it a good option for investors that have a high weighting towards shares such as Australia and New Zealand Banking GrpLtd (ASX: ANZ) and the big four banks.

iShares Global Healthcare ETF (ASX: IXJ)

Another ETF to consider buying is the iShares Global Healthcare ETF. If your portfolio is lacking exposure to the healthcare sector, then I think this ETF would be a good way to do it. As well as giving investors access to Australian healthcare shares such as CSL Ltd (ASX: CSL), Ramsay Health Care Limited (ASX: RHC), and Sonic Healthcare Limited (ASX: SHL), it provides exposure to many global healthcare giants.

This includes the likes of Johnson & Johnson, Novartis, Pfizer, Roche, and Sanofi. And given the positive outlook for the healthcare sector over the next couple of decades due to ageing populations and increased chronic disease, I believe it could provide strong returns for investors over the long term.

More reading

• 2 ASX ETFs I would buy for diversification and strong long term returns
• Tech shares! Should we even invest in anything else?
• 3 of the best ETFs to give ASX investors international exposure
• Are Macquarie Group shares worth investing part of $3,000 into this June?
• 3 top ETFs you can easily diversify your portfolio with immediately

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Ramsay Health Care Limited and Sonic Healthcare 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 Spheria Emerging Companies Ltd (ASX: SEC) share price is edging higher on Wednesday after the release of its May investment update.

What happened in May?

During the month of May, Spheria Emerging Companies recorded a solid return but continued to underperform its benchmark.

The fund manager reported a 7.2% gain in May, compared to a 10.6% gain by the S&P/ASX Small Ordinaries Accumulation Index. This means its return over the last 12 months is now a negative 12.7%, whereas the index is down 2.9%.

What is Spheria invested in?

A number of companies contributed to its 7.2% gain last month. Positive performers in the fund included retailer Beacon Lighting Group Ltd (ASX: BLX), appliance manufacturer Breville Group Ltd (ASX: BRG), fashion retailer City Chic Collective Ltd (ASX: CCX), and telco Superloop Ltd (ASX: SLC).

Management commented: “These stocks continued their recovery over May post the selloff in March. Superloop is benefitting from increased data demand and a much greater focus on cash flow generation with a moderating capex profile.”

The fund manager also notes that Breville “appears to have continued to trade well through the shutdown period as consumers purchase small home appliances.” It took part in its $101 million capital raising during the month.

That wasn’t the only capital raising it took part in. It also added to its position in Blackmores Limited (ASX: BKL) by participating in its $117 million capital raising. This could be an indication that it remains optimistic on its prospects.

The detractors.

The biggest factor in its underperformance in May was not necessarily what it owned, but what it didn’t own.

Spheria notes that there were a few names in the gold space which it doesn’t own, including Saracen Mineral Holdings Limited (ASX: SAR) and Regis Resources Limited (ASX: RRL), which contributed strongly to the S&P/ASX Small Ordinaries Accumulation Index’s gain.

Though, one share in the portfolio that did weigh on its performance was Village Roadshow Ltd (ASX: VRL). It declined 10% during May on the back of a revised takeover offer from BGH Capital.

Where will the future gains come from?

Spheria appears optimistic on the future and notes that “the prospects for a reasonable economic recovery are real.”

In suspects that this could ultimately lead to a rotation into cyclical sectors which offer value for money.

“Whilst high growth concept stocks particularly in the fintech space have led the recovery so far, there remains the prospect of a strong rotation into cyclical sectors which offer far greater relative valuation appeal. Sectors which include building materials, consumer discretionary and media,” the fund manager explained.

It concluded: “The re-emergence of private equity and corporates on the acquisition path is also likely. With our focus on strongly cash generative businesses with modest gearing we should be the beneficiary of some of this activity looking forward.”

More reading

• Why the Beacon Lighting share price is soaring 22% today
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 jumps almost 4%, Webjet share price soars
• Why AusCann, Phoslock, Kogan, & Village Roadshow are dropping lower
• The ASX winners and losers from the latest S&P index shake-up

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 SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended Blackmores 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 Beacon Lighting Group Ltd (ASX: BLX) share price is beaming today after the retailer announced bumper second-half sales growth.

At the time of writing, Beacon Lighting shares have surged 22.61% to $1.22, taking the company’s year-to-date share price movement back into positive territory (albeit marginally).

What did Beacon Lighting announce?

This morning, Beacon Lighting delivered a business update. This is the first time investors have heard from the company since the release of its first-half FY20 results back in February.

In today’s release, Beacon revealed that its stores have been able to trade throughout the COVID-19 pandemic. This has helped the company to achieve strong sales growth in the second half of FY20.

Accordingly, for the period 30 December 2019 to 14 June 2020, Beacon delivered total sales growth of 15.5% and comparable sales growth of 16.9% over the corresponding period in 2H19. Meanwhile, the company’s online channel reported bumper growth of 77.7%.

As for year-to-date results (1 July 2019 to 14 June 2020), Beacon has achieved total sales growth of 7.1%, comparable sales growth of 6.4%, and online sales growth of 47.8% over the corresponding period in FY19.

The company attributed this uplift in sales to changes in consumer behaviour in the wake of COVID-19.

Further developments and profit guidance

On 9 December 2019, Beacon disclosed it had sold its Brisbane distribution centre to Charter Hall for $28 million under a sale and leaseback arrangement.

This morning, Beacon revealed that the sale realised a cash flow profit before tax of $13.5 million. Given the sale and leaseback accounting rules, the company realised a profit before tax of $7.8 million which will contribute to its FY20 statutory results.

At the end of last year, the company also announced the closure of Beacon Energy Solutions. The retailer disclosed today that the cost to close the business will be approximately $5 million, exceeding original forecasts of between $3.4 million and $3.9 million.

Excluding the impact of the distribution centre sale, the Beacon Energy Solutions closure and lease accounting changes, the company’s FY20 underlying net profit after tax (NPAT) is expected to exceed the $16.5 million result achieved in FY19.

More reading

• Here’s where this ASX fund manager sees value for investors
• Is this ASX small cap the best placed to benefit from the $700m HomeBuilder grant?

Motley Fool contributor Cathryn Goh 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.

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