Is the share price of NIB Holdings Limited (ASX: NHF), AMP Limited (ASX: AMP) or BWP Trust (ASX: BWP) a strong buy?

In the current investing conditions it’s hard to find shares that are good value. Some of the ASX tech growth shares are trading with very high forward price/earnings ratio multiples like Appen Ltd (ASX: APX) and Afterpay Ltd (ASX: APT).

I’m inclined to consider some non-tech ASX shares for my portfolio. Could one of these three ASX shares be considered a strong buy?

NIB

NIB is one of the biggest private health insurance businesses in Australia.

The company is in an interesting position with the ongoing global COVID-19 pandemic. Elective surgeries were delayed earlier in the year, though they have gradually returned as well as allied healthcare treatment like dentistry.

NIB recently acknowledged that there were likely to be some savings in claims expenses and there could be a possible cash refund for members in part compensation for the lack of access of private health treatments.

The ASX share has postponed its premium increase by six months to October 2020, it has offered financial hardship support, extended product coverage for no extra cost, extended cover to include telehealth consultations and offered frontline healthcare workers a $250 ‘wellness rebate’.

There was uncertainty for the private health insurance industry before COVID-19 with a national discussion about premium affordability. The picture looks even more clouded now. If people ditch their private health insurance due to household budget difficulties then that could be tough for NIB. There’s also the current loss of incoming international students and workers who would have taken up private health insurance.

NIB is trading at 17x FY21’s estimated earnings at the current NIB share price. It can be smart to invest when there’s a lot of fear and uncertainty. I just don’t see a big turning point for Australian policyholder growth unless the federal government does something. Though a vaccine could boost the NIB share price. 

AMP

AMP shareholders have been through a very tough time since the start of 2018. The Hayne royal commission really hurt the financial services business.

Of course, every business has a price as long as it’s not going to go broke. AMP is still worth several billion dollars. It has the financial firepower to potentially change things around.

The company recently sold AMP Life for $3 billion, including $2.5 billion cash. A sizeable part of the $2.5 billion cash pile will be used to deliver the new AMP strategy. Only time will tell if AMP can truly turn things around. Low-cost exchange-traded funds (ETFs) are now in high demand by younger investors, it’s businesses like Vanguard, Blackrock and BetaShares that are attracting a lot of fund flows.

It’s trading at 14x FY21’s estimated earnings at the current AMP share price. The key question will be about what direction earnings will go in FY22 and beyond. I’m not convinced there’s good future growth potential with AMP.

BWP

BWP Trust is a real estate investment trust (REIT) which owns warehouses that are leased to Wesfarmers Ltd’s (ASX: WES) Bunnings.

Most REITs have seen their share prices decline due to COVID-19 like the office building REITs and shopping centre REITs.

Arguably, BWP is one of the best placed REITs in the sector because Bunnings performed so strongly because of the number of people who decided to undertake a home DIY project during lockdowns. BWP doesn’t directly profit from that, but it would help Bunnings continue to pay the rent to BWP.

Indeed, the REIT has guided that the full year FY20 distribution will be 18.29 cents per unit, a 1% increase from FY19. I think that’s a solid result considering all the uncertainty that occurred throughout FY20.

At the current BWP Trust share price it offers a 4.7% distribution yield.

Foolish takeaway

I don’t think I’d call any of these ASX shares a buy at the current price. BWP would be the one I’d buy out of the three. Generally, when I buy dividend shares for yield I like them to have a yield of more than 6% – BWP Trust’s isn’t that large. 

More reading

• Why you should buy Telstra and these ASX dividend shares for income
• These ASX dividend shares are better than term deposits
• Forget property! I’d buy these ASX dividend shares instead
• Broker warns Afterpay and these ASX stocks are caught in an overcrowded trade
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended NIB Holdings 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 Is the NIB, AMP or BWP share price a strong buy? appeared first on Motley Fool Australia.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Helloworld Travel Ltd (ASX: HLO)

According to a note out of Morgans, its analysts have upgraded this travel agent’s shares to an add rating with an improved price target of $2.46. This follows its equity raising, which has been undertaken to strengthen its balance sheet during these difficult trading conditions. Although the broker doesn’t believe its earnings will return to previous levels until FY 2023, unless a vaccine is developed, it believes Helloworld’s shares are cheap at the current level and has upgraded them. While I agree that its shares look cheap, I would wait for travel markets to recover before considering an investment.

OceanaGold Corp (ASX: OGC)

A note out of the Macquarie desk reveals that its analysts have upgraded this gold miner’s shares to an outperform rating with an improved price target of $3.70. The broker made the move in response to the release of its economic assessment of the Waihi District in New Zealand. It notes that the company’s estimate of 2.2 million ounces and an all-in sustaining cost of US$627 per ounce was far better than it was expecting. I think OceanaGold could be a good option for investors looking for exposure to gold.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating but lowered their price target on this banking giant’s shares to $23.50. The broker has been busy looking through the banking sector and working out what the future holds for the banks following the pandemic. While it sees further loan deferrals, slower dividend recoveries, and higher capital buffers, it also sees value in some bank shares. Westpac is the broker’s preferred pick, followed by Australia and New Zealand Banking GrpLtd (ASX: ANZ). I agree with Citi that the Westpac share price is in the buy zone right now.

More reading

• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• Cash rate on hold until 2022? Buy these ASX dividend shares
• Are our ASX bank shares expensive by global standards?
• BKI Investment share price rises despite 35% drop in FY20 profit
• ASX 200 flat: Westpac class action, Rio Tinto Q2 update, travel shares sink

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Helloworld 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 Leading brokers name 3 ASX shares to buy today appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) rose 1.9% last week to finish the week at 6033.6, having received a mid-week boost on hopes of a coronavirus vaccine. The continued buoyancy of the market indicates an accelerated recovery from COVID-19 is being priced in, but experts have warned of ongoing impacts with a vaccine unlikely to be widely available for at least a year. 

Investors looked to lock in gains from recent meteoric share price rises last week, rotating out of high flying technology shares such as Afterpay Ltd (ASX: APT). The technology sector weighed on the share market last week with big names dipping sharply. EML Payments Ltd (ASX: EML) fell 6.3%, Megaport Ltd (ASX: MP1) fell 6.9% and Altium Limited (ASX ALU) fell 4.2%.

We take a look at 5 of the worst performing ASX shares last week. 

Avita Therapeutics Inc. (ASX: AVH) 

The Avita Therapeutics share price fell 19% to finish last week at $6.38. The Avita Therapeutics share price has been dropping since the company provided an update on 10 July that revealed sales below analyst expectations.

Sales of Avita’s RECELL System were US$3.79 million in the 4th quarter, a negligible increase over third quarter sales of $3.78 million. At the end of the quarter the company had cash of approximately US$73.4 million, a decrease of US$5.92 million from the end of the previous quarter. 

COVID-19 led to challenging commercial conditions for Avita. Nationwide protective orders led to a decrease in the incidence of burns, which its RECELL System is used to treat. Nonetheless, in the quarterly update CEO Mike Perry said the clear benefits of the system, which include shortened hospital stays along with less invasive and fewer surgeries, were continuing to resonate with hospitals and physicians.

In positive news, the company announced last week that the US Department of Health and Human Services would procure the RECELL System to build preparedness for public health emergencies. 

Mesoblast Limited (ASX: MSB)

The Mesoblast share price fell 9.5% last week to close the week at $3.32. There was no news out of the regenerative medicine company to prompt the fall in the share price, however the Mesoblast share price remains up 200% from its March low. It may be that investors are taking profits after the surge in the share price. Mesoblast is behind Remestemcel-L, a product that is being trialed in the treatment of seriously ill coronavirus patients. 

Remestemcel-L has been used to treat graft versus host disease and is believed to counteract the inflammatory process involved in several diseases. The product has been shown to improve respiratory and functional outcomes in patients with inflammatory lung disease. In the third quarter Mesoblast recorded a 113% increase in revenues which reached US$31.5 million. Loss after tax was reduced by 34% to US$45.3 million, driven by the increase in revenues, and a 15% decrease in research and development spend. 

Polynovo Ltd (ASX: PNV) 

The Polynovo share price declined 7% last week to finish the week at $2.26. Polynovo is a medical device company producing dermal regeneration solutions using its patented NovoSorb biodegradable polymer technology. Despite announcing a record US sales month in June, the Polynovo share price declined over the week as investors rotated out of the stock. Sales in the June quarter were 33% greater than the March quarter, with the company forecasting FY20 sales will be at least double those of FY19. 

In its recent trading update, Polynovo chair David Williams said:

[S]ales are still lumpy but there is a strong upward trajectory as surgeons embrace our product and the patient result it gives. While FY20 sales will show impressive growth over FY19, the sales run-rate is more impressive and should be a better indicator of the near-term future.

Megaport Ltd (ASX: MP1)

The Megaport share price fell 6.9% last week finishing the week at $13.64. There was no news out of the technology company to prompt the drop in the share price, but investors may have been cashing out after the company rebounded strongly from its March low. Megaport shares fell to $6.74 in March but have since gained 102% (at the time of writing). 

Megaport operates in the network-as-a-service space, providing bandwidth which allows users to connect with cloud services and data centres. Having launched services in Japan last year, Megaport now operates in 21 countries and is partnered with Microsoft Azure, Google Cloud, IBM, Alibaba, and Oracle. Megaport reported revenue of $25.9 million in 1H FY20, a 70% increase on the prior corresponding period. Profit after direct network costs increased $8.3 million or 173% to $13.2 million. 

Afterpay Ltd (ASX: APT)

The Afterpay share price fell 6.8% last week to finish the week at $67.37. This appears to be the result of profit taking with shares in the buy now, pay later (BNPL) provider hitting a high of $73.50 the week before.

Afterpay in fact announced 2 new partnerships last week, which should help expand its market share. A deal with Apple Pay means customers can now use Apple Pay to make purchases through Afterpay in physical retail stores and online. A partnership with Google Pay means customers using this payment method will also be able to utilise Afterpay. 

The largest of the ASX BNPL providers by market capitalisation, Afterpay has been a standout in the post-March market recovery. Growing customer numbers and transaction values have driven the share price higher, although Afterpay is yet to achieve profitability. In 1H FY20, the company reported $4.8 billion in underlying sales. Total income increased 105% to $212.2 million, however a statutory loss after tax of $31.6 million was recorded. 

More reading

• How to invest $10,000 in ASX 200 shares for growth and dividends
• Why these 9 ASX shares have doubled in value in the past year
• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• Top brokers name 3 ASX shares to buy next week
• 3 five-star ASX shares to buy

Kate O’Brien owns shares of Avita Medical Limited and POLYNOVO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, MEGAPORT FPO, and POLYNOVO FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Avita Medical Limited and MEGAPORT 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.

The post 5 of the worst performing ASX shares from last week appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) ended up 1.9% last week to finish the week at 6033.6. The market was boosted mid-week on hopes of a coronavirus vaccine, and seems to be pricing in an accelerated recovery from COVID-19. Experts, however, have warned impacts will be ongoing, with a vaccine unlikely to be widely available for at least a year. 

Investors moved out of high flying technology shares such as Afterpay Ltd (ASX: APT) last week, possibly locking in gains from recent meteoric share price rises. The S&P/ASX 200 Information Technology Index (ASX: XIJ) ended the week down 4.5%. Hurdles to economic recovery may prompt higher volatility as investors look to cash in on share price rises since March. 

The share market was buoyed by healthcare and the miners last week. The S&P/ASX 200 Health Care Index (ASX: XHJ) gained 0.8%, with Ansell Limited (ASX: ANN) gaining 2.2%. BHP Group Ltd (ASX: BHP) was up 3.5%, and Rio Tinto Limited (ASX: RIO) rose nearly 5%.

We take a look at the 5 top performing ASX 200 shares last week. 

Alumina Limited (ASX: AWC) 

The Alumina share price rose 12.9% last week to finish the week at $1.80 following strong second quarter earnings. Alumina has interests in bauxite mining, alumina refining, and aluminium smelting operations via a joint venture. The share price rose when Alumina announced it had received $58.6 million in distributions from the joint venture, which was above analyst expectations. This was an 87% increase on the $31.3 million received the previous quarter. 

Alumina prices have risen from their lows of $225 a tonne in April. Increased importing by China has seen prices rise to $284 a tonne. Commenting on the rebounding commodity price, CEO Mike Ferraro said:

Global demand for smelter-grade alumina so far in 2020 is slightly higher than 2019 volumes. Market sentiment globally has improved and there are signs of a promising economic recovery in China. However, it is still to be seen how the economic impact of the pandemic will pan out.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp Group share price gained 10.8% last week to finish the week at $16.91. The debt collection group announced its unaudited FY20 results last week, revealing FY20 net profit after tax is expected to be $10 million–$15 million. This includes impairment charges relating to purchased debt ledger assets and additional provisioning from the impact of the COVID pandemic. Net profit before these adjustments is expected to be $75 million–$80 million. 

Credit Corp reports its customers have been less prepared to agree and maintain longer-term repayment plans since the implementation of isolation measures. This initially produced a sharp decline in collections and rising loan book arrears. More recently, willingness to make one-off payments has brought collections for May and June closer to pre-COVID levels. Persistently elevated levels of unemployment will likely see loan book arrears rise. Nonetheless, Credit Corp reports increased interest in debt sales.

With a strong capital position including no net debt and undrawn funding lines of $375 million, Credit Corp will be able to maximise investment opportunities as they arise. 

Cooper Energy Ltd (ASX: COE) 

The Cooper Energy share price rose 10.5% last week to close the week at 42 cents. Cooper Energy is an oil and gas company supplying customers including AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Gas is produced in the Otway basin and accounts for the major share of the company’s sales revenue, production, and reserves.

There was no news out of Cooper Energy last week to account for the rise in share price, however the company has a number of projects under development which could add value and increase gas production. 

Gas prices have trended lower recently, led by LNG prices. This is expected to improve in July, however, and in the southern states production from existing and committed sources is expected to fall short of demand by 2021. With capital spending being reduced in FY20 and FY21, this shortfall could widen, leading to the need for new sources of supply. 

Fortescue Metals Group Limited (ASX: FMG) 

The Fortescue Metals share price climbed 10.4% last week to finish the week at $16.39 with the miner benefitting from a soaring iron ore price. Iron ore rose to $110 a tonne in July, its highest point since August 2019. The surge in coronavirus infections in Brazil triggered concerns of a supply disruption, as demand from China rises. The Chinese Government has pledged to increase infrastructure spending to offset the impact of coronavirus on the economy. 

In the March quarter Fortescue reported record iron ore shipments of $32.3 million tonnes, 10% high than Q3 FY19. Year-to-date shipments were a record $130.9 million tonnes. Costs were 2% lower than 3Q FY19. Strong free cash flow generation resulted in cash on hand of US$4.2 billion at 31 March 2020 and net cash of US$0.1 billion, compared to net debt of US$2.9 billion at 31 March 2019. 

Orocobre Limited (ASX: ORE) 

The Orocobre share price rose 9.4% last week to finish the week at $2.80. Orocobre is a mineral resource company focused on lithium and borax mining operations. There was no news out of the company to prompt the price rise last week and lithium prices remain at record lows. Demand continues to be subdued in China’s lithium market, despite the resumption of economic activity. Nonetheless, investors may be buying into Orocobre now as lithium prices are poised to rally in the next few years as electric vehicle sales accelerate. This will be driven by government efforts globally to shift toward cleaner modes of mobility. 

In the June quarter, Orocobre sold approximately 1,600 tonnes of lithium carbonate at around US$4,105 a tonne. COVID-19 restrictions limited the ability to complete sales during the quarter. While most logistical issues have been addressed, delivery of product is yet to return to normal levels as customers delay shipments due to lower production and excess inventory.

More reading

• ASX 200 down 0.5%: Sydney Airport and South32 updates, HUB24 delivers record Q4
• Why the South32 share price is falling today
• 3 ASX shares to leverage the booming iron ore price
• Is the Xero share price in the buy zone right now?
• Coles and 2 more ASX 200 shares to watch this week

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.

The post 5 top performing ASX 200 shares from last week appeared first on Motley Fool Australia.

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The 1300 Smiles Limited (ASX: ONT) share price is currently trading 3.11% higher after the release of the company’s most recent trading results today.

1300 Smiles owns and operates full-service dental facilities in New South Wales, South Australia and across 10 major population centres in Queensland. 

Trading update

Despite the coronavirus pandemic impacting its April and May profitability, the group delivered strong June results.  

The group reported that its June 2020 revenue was up 18% compared with the same time last year (June 2019). Additionally, same-store sales increased by 20%. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 65% on the prior corresponding period (pcp). The group also reported its online booking platform saw a 216% increase in use on pcp. 

1300 Smiles had net debt of $8.3 million as at the end of last month.

In the update, the group highlighted it benefitted from the reopening of dental clinics after restrictions went back down to level 1. Pleasingly, the strong results last month have continued this month. The group is still finalising its full year results, but reported its revenue was only down by 3%.

1300 Smiles managing director Dr Daryl Holmes said “these are truly amazing results that I am so excited and reassured by, after coming through the most challenging and extraordinary months… the ongoing out-performance continues to amaze our board and I.”

Today’s announcement follows an update on 6 April 2020. In April, the group had about 50% of its practices open throughout its network, in accordance with advice from the relevant authorities.

Across the pandemic, 1300 Smiles has been supported by its senior lender Commonwealth Bank of Australia (ASX: CBA). It had approximately $10 million in undrawn facilities, as per the April update.

About the 1300 Smiles share price

In its half yearly report released in February this year (before the full impact of the pandemic on operations), the company reported revenue and net profit after tax was up 14.5% and 6.8%, respectively. 

However, the group’s shares have since been impacted by the lockdown restrictions and are trading down 15.87% over the past year. The 1300 Smiles share price is currently sitting at $5.30 per share. 

More reading

• Leading brokers name 3 ASX shares to buy today
• 5 of the worst performing ASX shares from last week
• 5 top performing ASX 200 shares from last week
• 2 quality ASX 200 shares to buy and hold beyond 2027
• How to invest $10,000 in ASX 200 shares for growth and dividends

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 1300SMILES 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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In my opinion, investing in ASX 200 shares is very much a long term game. Here we look at two quality ASX 200 shares that may not have been top performers over the past year in terms of share price gains, but which I believe are both well positioned for above average shareholder returns over the next five years and beyond.

2 ASX 200 shares to buy and hold 

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

The Soul Patts share price rallied strongly during 2018, however lost some ground in the first part of 2019. Since then, it has been largely trending sideways, despite a dip in the early phase of the coronavirus pandemic. However, I believe looking back over a longer period provides greater insight into the Soul Patts business model. Over the past 10 years, this ASX 200 share has increased by nearly 60%.

In fact, Soul Patts has a strong, long-term track record of outperforming the ASX index. Also, it has been listed on the ASX for over a century, and has paid a dividend every year in that time.

I am particularly attracted to Soul Patts as an ASX 200 share investment due to its highly diversified business model. The company invests across a broad spectrum of industries, ranging from pharmacies and telecommunications to mining and building products.

Soul Patts also keeps a significant amount of cash on its books. This positions it well to snap up any lucrative investment opportunities that may come its way. With its share price currently trading at well below levels seen in early 2019, Soul Patts is definitely in my buy zone right now.

Blackmores Limited (ASX: BKL)

The Blackmores share price has experienced a downward trend after its lofty heights at the beginning of 2016 when it was trading above $210. It is now trading at $73.15. However, I feel this downward trend needs to be considered within the context of Blackmores’ share price performance during 2015, when it grew at a phenomenal pace. At the beginning of 2015, the Blackmores share price was trading at around half of its current level.

Granted, Blackmores recent financial performance has not been overly impressive. In particular, the company’s operations in China have underperformed. However, Blackmores now has a plan in place to rejuvenate its growth in Asia, particularly in the massive Chinese market. The company is injecting more funds into its South East Asian operations, and will also target the Indian market.

Despite the challenges ahead, Blackmores remains my buy zone. I believe that its Asian strategy holds promise, and with its share price well down on the levels seen at the beginning of 2019, I believe it offers a reasonably good buying opportunity for patient, long-term investors.

Foolish takeaway

Soul Patts and Blackmores are two quality ASX 200 shares that are in my buy zone right now. My pick of the two would probably be Soul Patts, due to its more diversified business model and strong track record of shareholder returns.

More reading

• How to create a yearly income of $65,000 in dividends
• Fund managers have been buying these ASX shares
• What I’m looking for in dividend shares during COVID-19
• 2 ASX shares that could be 10-baggers
• 3 top ASX 200 blue chip shares to buy

Motley Fool contributor Phil Harpur owns shares of Blackmores Limited. The Motley Fool Australia owns shares of and has recommended Blackmores 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 2 quality ASX 200 shares to buy and hold beyond 2027 appeared first on Motley Fool Australia.

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Growth and dividends. That’s the holy grail that most ASX 200 share investors are looking for.

It’s a rare combination, but one that can be an absolute gold mine if you can find it.

If you’re looking to invest $10,000 for both growth and dividends, here’s how I’d go about setting up a brand new ASX 200 share portfolio.

Where I’d invest $10,000 in ASX 200 shares

I’m going to assume I’m building a diversified portfolio from the ground up. I personally like the ‘satellite’ approach, which is underpinned by a diversified core with some smaller allocations to growth companies.

That means it’s good to start with a cornerstone investment that can underpin portfolio growth. With $10,000 to invest, allocating your first $5,000 to a diversified exchange-traded fund (ETF) like Vanguard Australian Shares Index ETF (ASX: VAS) could be a good move.

Vanguard Australian Shares Index ETF seeks to track the S&P/ASX 300 Index (ASX: XKO) and invests in 306 companies. With a management fee of just 0.10% p.a., this Vanguard fund could give your portfolio instant diversification with a high weighting towards ASX 200 shares.

Once you’ve got your $5,000 ETF investment, it’s time to build out the ‘satellite’. If you’re looking for growth in the next 10 years, it’s worth thinking about potential boom industries.

To me, that means I’m looking in the biotech and data management industries.

With the remaining $5,000, I wouldn’t want to spread my investment too thin across ASX 200 shares. That means shares like Polynovo Ltd (ASX: PNV) and NextDC Ltd (ASX: NXT) could be in my sights.

Polynovo continues to kick goals and make the most of its significant research and development capabilities. Polynovo shares are up 17.65% this year but further applications of its NovoSorb BTM product could see the ASX 200 biotech share climb higher, in my view. Specifically, Polynovo is eyeing off the lucrative breast augmentation and hernia repair markets right now.

I think the data management sector could also have a huge decade in the 2020s. NextDC is currently a leader in the data storage and security space. That leaves the ASX 200 tech share well-placed to climb higher if earnings continue at a strong pace in the next decade.

So… what’s the end result?

Putting $5,000 into Vanguard Australian Shares Index ETF should provide a handy dividend and franking credits for investors. Then, investing $2,500 in each of NextDC and Polynovo shares rounds out your ASX portfolio with a potential growth platform. If these 2 Aussie companies can continue their strong growth in the next 10 years, then that could be a solid mix of growth and dividends by 2030, in my opinion.

More reading

• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• 3 reasons to buy Vanguard Australian Shares Index ETFs
• These were the worst performing ASX 200 shares last week
• 3 excellent ASX ETFs to buy for dividends
• Where to invest your first $500 into ASX shares

Ken Hall owns shares of Vanguard Australian Shares Index. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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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