ASX share prices change every day. Share prices can move a lot over a week or a month. 

We have to decide if the price being presented is good value or not. We can decide to buy shares at the price the market is offering. Perhaps we may take the price the market is willing to buy our shares for. Or we can just do nothing.

I don’t think there are many shares that are trading at great value at the moment due to uncertainty caused by COVID-19 (and the related impacts) as well as the strength of the share market’s recovery since March 2020.

But there are still some ASX shares I’d be happy to buy for my portfolio today:

Bubs Australia Ltd (ASX: BUB) – $3,500

Bubs is a business which is still fairly early on in its growth journey. It’s an infant formula business with a specialisation in goat milk products.

With a smaller business I think it’s important to think about the long-term. Don’t think about how much an ASX share may grow in six months. Think about where the business will be in three years or five years from now.

Bubs is doing an excellent job of growing its international revenue. In the quarter ending 31 March 2020 it more than doubled its Chinese revenue. Its ‘other markets’ revenue increased by about 20 times in that same quarter. I think the company has great global growth potential. There is a huge addressable market in Asia alone.

The Bubs share price looks good value to me. Due to the essential nature of the business’ products, I think Bubs has defensive revenue with a great growth trajectory.

WCM Global Growth Ltd (ASX: WQG) – $2,500

This is a listed investment company (LIC) that targets global businesses. It looks for international businesses that have an expanding economic moat. One of the main factors that WCM looks for is a rising return on invested capital. It also looks for businesses with a corporate culture that supports that goal of an improving economic moat.

Some of the ASX share’s current largest positions include Shopify, Tencent, Visa and MercadoLibre. These businesses are leaders in their respective markets.

The LIC’s returns have been strong over the past three years, yet the WCM Global Growth share price is still trading at a double digit discount to the pre-tax to the latest net tangible asset (NTA) disclosed in the weekly update.

City Chic Collective Ltd (ASX: CCX) – $1,000

City Chic is one of the most promising ASX retail shares in my opinion. The ASX share is a fashion leader in Australia for plus-size clothing for women.

City Chic was growing nicely before COVID-19 came along. Whilst store closures were tough, the company saw online sales growth of 57% during the shut store period. That’s impressive considering the company said two thirds of global sales are online.

I’m excited by City Chic’s aim of becoming a world leader in plus size women’s clothing. It’s making smart acquisitions to try to make this happen.

At 21x FY22’s estimated earnings I think the City Chic share price looks like a good long-term buy.

Vitalharvest Freehold Trust (ASX: VTH) – $2,000

There is a lot of uncertainty in the share market and economy at the moment. A cheap agricultural real estate investment trust (REIT) could be a good way to play this situation.

Farming returns can be quite different to the overall share market. Vitalharvest owns some of the largest berry and citrus farms in Australia. Those farms are leased to Costa Group Holdings Ltd (ASX: CGC). Hopefully the next 12 months will be better for Costa’s earnings because Vitalharvest has a profit share agreement with the horticultural giant.

I’m excited that Vitalharvest has a new manager which will be looking across the whole farming supply chain for investment opportunities. Things like food storage and food processing properties will be among the considerations for the ASX share’s portfolio.

At the current Vitalharvest share price it’s trading at an approximate 20% discount to the net asset value (NAV) at 31 December 2019. I think that’s a big discount that can close up with better earnings and distributions from the REIT.

Foolish takeaway

I think each of these ASX shares could beat the market over the next three to five years. Vitalharvest looks great value and I believe Bubs has a very good growth journey ahead of it, assuming China doesn’t cause any problems with exports.

More reading

• 4 trends to invest in before August earnings season
• Got $1,000? You should buy 1 of these 6 ASX shares
• 3 of the best mid cap ASX shares you can buy right now
• Here are two ASX shares I’ve recently bought
• The smartest ASX shares to buy if you have $2,000

Motley Fool contributor Tristan Harrison owns shares of WCM Global Growth Limited. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and COSTA GRP 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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Which ASX shares are the safest on the S&P/ASX 200 Index (ASX: XJO)?

Well, it’s a fraught question. What do we really mean by ‘safe’? For most investors, a ‘safe’ share is one that won’t lose its value under any market conditions. And on this front, it’s almost impossible to call any ASX share ‘safe’. See, the share market is a volatile place. In theory, it should always be pricing every asset according to its true and intrinsic market value. But the problem is that markets don’t put much store in theory. In reality, emotional investing (either fear or greed) is the predominant force in moving shares on a day to day basis. Legendary investor Benjamin Graham once said that the stock market is a ‘voting machine in the short-term, and a weighing machine in the long-term’, or words to that effect.

So it’s almost impossible to find a share that never loses its value at any point in time. A cash-based exchange-traded fund like the iShares Core Cash ETF (ASX: BILL) is probably your best bet. But that’s not too different to just having your money in a bank account anyway.

So what’s your next best option? A seasoned investor might point you to ASX blue chip shares like Woolworths Group Ltd (ASX: WOW) or Wesfarmers Ltd (ASX: WES). Or even the ASX banks, because they’re ‘safe as banks’ right? Well, try telling that to anyone who was a shareholder in Westpac Banking Corp (ASX: WBC), which saw its value crater by more than 50% between September 2019 and March 2020.

ASX blue chips are no safer than any other ASX 200 share in a market crash. What really matters is the durability of a business’ cash flow. If a company has a robust and resilient revenue base, it’s more likely (but not certain) to hold its market value over time.

What about inflation-safe ASX shares?

But perhaps market volatility is not the only thing that troubles some investors. The more pessimistic market participants amongst us have another fear: inflation. With governments around the world spending an unprecedented amount of cash to combat the coronavirus crisis, there are sections of the investing community that believe this will eventually lead to massive inflation – the loss of a currency’s purchasing power through increased supply.

Figuring out which ASX shares are best placed to survive a world of high inflation depends on a few factors. Firstly, does the company have sufficient pricing power to be able to increase its revenues at least in line with the rate of inflation? Those companies that dominate their markets usually have the most power in this regard and are more equipped to deal with a high-inflation world. Think Apple with its iPhones, or the A2 Milk Company Ltd (ASX: A2M) with its premium dairy products.

Secondly, does the company have real, tangible assets it can use to support its cash flow? Transurban Group (ASX: TCL) for example, owns and operates a series of toll roads. No matter what is happening with inflation, Transurban is always going to have a portfolio of assets that consumers want (or even need) to use. This gives Transurban a massive advantage in a world of high inflation. It’s a similar story with Sydney Airport Holdings Pty Ltd (ASX: SYD) or AGL Energy Limited (ASX: AGL). If you’re worried about future inflation, these kinds of companies are a good place to start looking for a ‘safer’ investment, in my view.

Foolish takeaway

There’s really no such thing as a ‘safe’ share or investment on the share market. If you have specific worries around inflation or any other kind of economic calamity, there are steps you can take to position your ASX portfolio accordingly. But investing in shares is never going to be a game of gains with no risk of losses. If you really can’t deal with the fact your portfolio’s value will fluctuate, then I would recommend periodically investing in exchange-traded funds (ETFs) without ever looking at your portfolio’s value. The only other option is leaving your cash in the bank, I’m afraid.

More reading

• Why this fund manager is preparing for a massive market crash
• ASX 200 rises 0.3%, investors bet on Tabcorp
• Are Marley Spoon shares future ASX blue-chips?
• Extended jobkeeper: Which ASX shares to buy?
• Kogan share price up 360% since March. Is it too late to buy?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk, Transurban Group, Wesfarmers Limited, and Woolworths 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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Is another massive market crash coming?

The S&P/ASX 200 Index (ASX: XJO) had another positive day, closing the day up 0.32% to 6,094 points. Since bottoming out on 23 March at 4,546 points, the ASX 200 is now up by 34%. It’s an incredible bull run, considering March brought us one of the sharpest and most severe bear markets in living memory. Despite its recent performance, the ASX 200 is still 9% below the level it was at the start of the year.

But one fund manager is betting that what he has labelled the markets’ “free pass” when it comes to the impact of the coronavirus pandemic won’t last forever.

An ultra-bearish fund manager

According to reporting in the Australian Financial Review (AFR), Rob Almeida, portfolio manager and strategist at MFS Investment Management, is calling time on the recent bull run in global markets. In fact, he sees another market crash on the horizon.

MFS is based in the US state of Massachusetts and has been around for around 90 years. Mr Almeida has one cardinal rule for his fund: “All that matters to investing is that you’re paying for future cash flows”.

And right now, he doesn’t see a positive outlook for cash flows at all. He’s also “having none” of the recent rally in global markets. In fact, according to the AFR, he has positioned his long/short strategy as “bearishly as possible”. The fund is sitting “in maximum cash and just 10 per cent exposure to equity (shares)”. The AFR quotes Almeida as stating the following:

One in three companies in Russell 10000 was unprofitable before the crisis. I can’t imagine that’s improved…I’ve got to believe we reach a point – I don’t know when – when investors stop giving companies and the economy a free pass on horrendous data… the quality of balance sheets, particularly in America, is the worst it’s been in over 100 years. There’s just no getting around that.

Almeida acknowledges the reckoning he’s been expecting for some months may not be entirely imminent. But with the level of conviction Almeida is placing within his fund on a dramatic reversal of market fortunes, I’m sure his investors are hoping he’s right.

Should ASX investors sell everything today?

I’m not prepared to follow Mr Almeida’s lead and liquidate 90% of my portfolio. However, I do think this gentleman has some good points, particularly surrounding cash flow. I like to invest in companies that are either producing healthy levels of recession-resistant cash flow today, or look to be able to in the foreseeable future.

The next year or 2 will be critical for many companies on the ASX. Some will be fine, but others will struggle and could even go under. And I do think it’s entirely possible we’ll see another market crash. We are by no means out of the woods yet with regards to the coronavirus. And there will be a point where the government can no longer afford to prop up the economy with record deficit spending.

So I’m not selling the farm just yet. But I am looking at my portfolio and seeing which businesses will be best placed to generate cash flow into the future, regardless of what happens within the economy.

More reading

• Which ASX 200 shares are the safest?
• ASX 200 rises 0.3%, investors bet on Tabcorp
• Kogan share price up 360% since March. Is it too late to buy?
• Why the Digital Wine Ventures share price is surging today
• Are ASX 200 shares about to take off on another bull run?

Motley Fool contributor Sebastian Bowen 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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The S&P/ASX 200 Index (ASX: XJO) went up around 0.3% today. The market responded positively to the economic update by Treasurer Josh Frydenberg.

NSW saw another 19 new COVID-19 cases and Victoria recorded 403 new cases. The Australian budget will have a deficit of $86 billion in the 2019-20 year and $184.5 billion in the 2020-21 year. A combination of huge support and a drop in tax return caused the large deficits. Low interest rates will make the debt manageable, according to Mr Frydenberg.

New leadership for Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price went up almost 5% today after announcing leadership succession.

Tabcorp’s board has selected Steven Gregg to succeed Paula Dwyer who will retire at the end of 2020. Mr Gregg is currently a non executive director and chair of the people and remuneration committee.

The ASX 200 gambling business also announced that David Attenborough will retire as Tabcorp’s managing director and CEO in the first half of the 2021 calendar year.

Current Tabcorp chair Ms Dwyer said: “With the integration of Tatts nearing completion, the time is now right for a new chairman to lead the Tabcorp board into the future. The appointment of Steven Gregg will provide continuity of leadership and an orderly transition as the company identifies and transitions to a new managing director and CEO.”

Coca Cola Amatil Ltd (ASX: CCL) share price bubbles

The Coca Cola Amatil share price bubbled higher by more than 5% after a June 2020 trading update and news of impairments.

Coca Cola Amatil’s trading volumes in June 2020 were down approximately 9% compared to June 2019. The quarter to 30 June 2020 saw volumes decline of around 23% compared to the prior corresponding period.

The ASX 200 share said that there has been improvement, but it varies across its geographic markets due to the differences in lockdown restrictions. In New Zealand, volumes were up 4% in June 2020 compared to June 2019. Australian volumes were down 3% for the month. Indonesia, where COVID-19 infection rates remain high, saw a 23% fall in volume despite improving significantly compared to May 2020 and April 2020.

Profit margins, particularly in Australia, have been adversely impacted by changing consumer behaviour due to COVID-19 restrictions. There has been a significant shift to the grocery channel and away from the higher margin ‘on-the-go’ channels.

Coca Cola expects to incur impairments in the range of $160 million to $190 million after tax in its FY20 half-year accounts.

Coca Cola Amatil managing director Alison Watkins said: “It is encouraging to see the improvement in our volumes as the pandemic restrictions were lifted across a number of markets. It has also been pleasing to see that the strength of our brands and strong sales capabilities continue to drive market share gains in Australia and New Zealand. We nevertheless remain cautious, given the reinstatement of lockdown measures from July in Melbourne and the rising COVID-19 infection rate in Indonesia.”

Dicker Data Ltd (ASX: DDR) announces unaudited FY20 half-year result

The company held its annual general meeting (AGM) today, the company announced its final unaudited half year result.

Total revenue was up 18.1% to more than $1 billion. Recurring software revenue increased by 53.1% to $225 million. Net profit before tax jumped 30.4% to $42 million and net profit after tax (NPAT) increased by 23.5% to $29.4 million.

Dicker Data said that it experienced a surge in demand for remote and virtual working solutions with hardware and software due to the increase in remote working.

The company, which is a distributor of hardware, software, cloud and emerging technologies said it saw improved margin as a result of increased focus on mid-market and small and medium businesses.

Dicker Data said that new vendors added during FY19 and the FY20 half-year accounted for $26.3 million of incremental revenue in the half-year result.

The Dicker Data share price rose 7.2% today. 

More reading

• Which ASX 200 shares are the safest?
• Why this fund manager is preparing for a massive market crash
• Kogan share price up 360% since March. Is it too late to buy?
• Why the Digital Wine Ventures share price is surging today
• Are ASX 200 shares about to take off on another bull run?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Marley Spoon AG (ASX: MMM) share price has had an amazing run in the last 3 months, with the company’s share price surging more than 868% since mid-March. The change in consumer behaviour during the lockdown period has benefitted the company, as many customers have opted to bypass supermarkets and move online.

So, if these positive trends and tailwinds continue, does Marley Spoon have the potential to become a blue-chip company in the long-term?

Demand fuels expansion

According to an article in the Australian Financial Review, Marley Spoon has signed a 10-year lease to take a 14,200 square meter space at a logistics facility being built by Charter Hall Group (ASX: CHC). The company is looking to expand its operations in order to make its supply chain more efficient after experiencing unprecedented demand during the coronavirus pandemic.

Marley Spoon’s management noted that there has been a fundamental shift in consumer shopping habits, with more shoppers going online for convenient and affordable options. According to management, a larger purpose-built facility will allow further automation and efficiency, whilst also allowing Marley Spoon to expand its offerings and services.

The new facility follows Marley Spoon’s recent completion of a $16.6 million capital raising in order to strengthen the company’s balance sheet and fund continued global expansion.

What’s the outlook for Marley Spoon?

Marley Spoon is the second largest subscription-based meal-kit provider in Australia. The company delivers fresh ingredients to customers in Australia, the United States and Europe. In its most recent trading update, Marley Spoon reported unprecedented demand for its services during the pandemic. As a result, the company saw a 46% increase in revenue for the first quarter and estimates that 7.5 million meals were delivered during that period.

Global market research company Nielsen reports there is a growing consumer appetite for meal kits in Australia with annual sales in the sector over $300 million, growing at a rate of 40% compared to 2018. Marley Spoon is well poised to benefit from this trend, especially after the company signed a $30 million, 5-year strategic partnership with Woolworths Group Ltd (ASX: WOW) last year.

Will Marley Spoon become a blue-chip?

Without a long-term track record of growth and profitability, I think it would be too bold and presumptuous to assume that Marley Spoon could become a blue-chip. In the short-term, it is more likely to be a takeover target for larger companies and conglomerates that are interested in expanding into the delivered food services. However, there is no denying the potential for Marley Spoon given the growth potential in the sector and the leverage provided by its strategic partnership with Woolworths.

More reading

• Which ASX 200 shares are the safest?
• Why Marley Spoon and these ASX shares are hitting new highs
• Why the Telstra share price is underperforming the market
• You probably shop at these 7 ASX retailers. Should you buy shares in them too?
• Why you should buy ANZ and these ASX dividend shares for income

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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Like many companies, junior ASX healthcare company Medical Developments International Limited (ASX: MVP) has had a volatile 2020.

After soaring to an all-time high of $11.78 in February, the Medical Developments share price was savaged in the sell-off in March, losing almost two-thirds of its value in the space of a single month. And despite climbing back up to closet at $6.52 this afternoon, those all-time high prices seem like a distant memory now.

So, what happened?

Back in March – possibly in an effort to halt its plummeting share price – Medical Developments’ management released a statement to the market trying to reassure investors that the damage to its business from the COVID-19 pandemic was limited. It claimed to have plenty of stock on hand to fulfil orders throughout 2020, and demand for its pharmaceutical products had remained robust.

But the market reaction in the intervening months has been lukewarm. There was a sharp recovery in April, with the share price quickly surging back up over $8. But the company has consistently failed to capture the same level of investor interest as it did earlier in the year, and over the last month, the MVP share price has slid nearly 15% lower.

What does Medical Developments International do?

Medical Developments International is a pharmaceutical and medical device company which specialises in pain management as well as treatments for asthma and chronic obstructive pulmonary disease. Its flagship product is a non-opioid analgesic named Penthrox.

2020 was shaping up to be another bumper year of expansive growth for the company, however the pandemic scuppered many of those plans. Despite its claims that COVID-19 had not had an adverse impact on existing demand for its products, Medical Developments did note that clinical trials of its products underway in geographies like China, the UK and South Korea were on provisional hold due to the pandemic.

For shareholders betting on Medical Developments gaining quick access to these potentially lucrative markets, this news may have been enough for them to jump ship.

MVP has still managed to gain a foothold in other markets, however. In April and May alone, Penthrox was approved for sale in Thailand, the Netherlands, Bosnia & Herzegovina, and Hungary. And although none of these regions carry the same weight as China or the UK, these approvals still show there is positive momentum behind the Penthrox brand.

Should you invest in Medical Developments International?

This has been a difficult year for many ASX healthcare companies. Market leaders like Cochlear Limited (ASX: COH) and CSL Limited (ASX: CSL), the former jewels of many investors’ portfolios, have lost a significant amount of their lustre. And the growth trajectories of many exciting emerging players like Polynovo Limited (ASX: PNV) and Opthea Limited (ASX: OPT) have stalled significantly.

However, this correction in the market can offer great buying opportunities. In the case of MVP, investors can look to the recent approval in Thailand as evidence that it can gain a foothold in the Asian region. The company has stated that it hopes this can be “a catalyst for a number of other country approvals in Asia.”

If so, it means that the expansion the market had priced in back in February hasn’t disappeared completely, it’s just been delayed. This means that right now, the Medical Developments share price could offer a great buying opportunity for new investors with the right risk appetite and a long-term outlook.

More reading

• Stock of the day: Traka Resources share price explodes 270% as it secures gold project
• Why retirees might want to buy Coles and this ASX dividend share
• Why the Opthea share price surged more than 20% today
• Extended jobkeeper: Which ASX shares to buy?
• Kogan share price up 360% since March. Is it too late to buy?

Rhys Brock owns shares of Cochlear Ltd. and Medical Developments International Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., Medical Developments International Limited, and POLYNOVO FPO. The Motley Fool Australia has recommended Cochlear Ltd. and Medical Developments International 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 Traka Resources Ltd (ASX: TKL) share price exploded by as much as 270% today after the mining exploration company announced it had secured rights to the advanced Mt Cattlin Gold Project.

Traka agreed to exchange its free carried 20% interest in the Mt Cattlin North Tenements for 100% of gold and other mineral potential (excluding pegmatite minerals) on the tenement area. 

What does Traka Resources do? 

Traka Resources is a mineral exploration company based in Western Australia. It looks for gold, copper, nickel, platinum, iron ore, titanium, and lithium, among other minerals. Listed on the ASX since 2003, Traka Resources has 3 current projects across Western Australia and Queensland. 

What did Traka Resources announce today? 

Traka Resources announced it had secured the rights to the Mt Cattlin Gold Project via an agreement with Galaxy Resources Limited (ASX: GXY). The Mt Cattlin North Tenements have a long history of gold mining and exploration. After decades of inactivity, Traka Resources says this represents an excellent advanced gold project. 

The new agreement with Galaxy Resources dissolves the existing joint venture but gives Traka the ability to acquire mining leases over future gold production areas. One of the prime targets, the Maori Queen Mine, contains a high-grade gold shoot characteristic of opportunities to be mined. It was originally discovered by an outcropping of gold and copper on the surface. 

How has Traka Resources been performing?

The Traka Resources share price jumped as much as 270% higher today following the news. It has since been sold down slightly and closed today’s trade up by 250% at 3.5 cents.

The company also has a 100% beneficial interest in the George Creek Project which is targeting lead, copper, cobalt, and Zinc. Traka completed a comprehensive exploration project last year and identified the targets minerals at the site, however COVID-19 restrictions are currently preventing access to the project. 

Traka Resources used $883,000 cash in operating activities in the 9 months to 31 March 2020. It began the quarter with cash and cash equivalents of $387,000, down from $903,000 at the start of the financial year. It received $250,000 from the disposal of a tenement in FY20.  

More reading

• These are the 10 most shorted shares on the ASX
• Why Galaxy, Platinum, Sezzle, & Treasury Wine shares are storming higher
• Here are the 10 most shorted shares on the ASX
• These are 10 most shorted shares on the ASX
• The latest ASX recommendation changes by top brokers

Motley Fool contributor Kate O’Brien 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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If you’re in search of a source of income in retirement, then I think the share market is a great place to look.

Especially given how low the interest rates on offer with traditional income-generating assets have fallen.

Three dividend shares that I think would be great options for retirees are listed below. Here’s why I like them:

Coles Group Ltd (ASX: COL)

This supermarket giant has been a very strong performer during the pandemic. This is due to panic buying from consumers, increasing consumption at home, and the pricing power the growing demand has given supermarkets. And while it has incurred additional costs because of social distancing initiatives and increased staffing, I still believe a strong profit result is coming in August. This should put Coles in a position to increase its dividend nicely for shareholders. Looking ahead, I believe the future is bright thanks to its strong market position, cost cutting plans, focus on automation, and long track record of same store sales growth. Based on the current Coles share price, I estimate that its shares offer a fully franked 3.5% FY 2021 dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider buying is the Vanguard Australian Shares High Yield ETF. As its name implies, this exchange traded fund gives investors exposure to many of the highest yielding dividend shares that the Australian share market has to offer. And this is all done through just a single investment. The fund is invested 66 shares in total. This includes the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four, and telco giant Telstra Corporation Ltd (ASX: TLS). Estimating the yield for next year is tricky at present, but I would expect it to be in the region of ~5% in FY 2021.

More reading

• Is the Tassal share price a potential outperformer?
• I would buy Coles and these ASX dividend shares right now
• Why the Telstra share price is underperforming the market
• You probably shop at these 7 ASX retailers. Should you buy shares in them too?
• The Coles share price is flying under the radar

Motley Fool contributor James Mickleboro 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 COLESGROUP DEF SET. 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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