If you’re interested in bolstering your portfolio with some blue chip shares, then I would suggest you consider the four listed below.

Here’s why I think they are quality options for blue chip investors:

BHP Group Ltd (ASX: BHP)

I believe that BHP would be a great blue chip option for investors. I think the Big Australian is the standout option in the resources sector thanks to its world class, low cost, and diverse operations and the strong free cash flows they generate.

Commonwealth Bank of Australia (ASX: CBA)

With Commonwealth Bank’s shares down 35% from their 52-week high, I think now could be an opportune time to invest. Especially given how the banking giant appears to have got all the bad news out of the way now following its third quarter update this week. And while trading conditions remain tough, I believe things will improve in 2021 and a return to growth could follow soon after.

Telstra Corporation Ltd (ASX: TLS)

Another company which I believe isn’t far off a return to growth is Telstra. Times have been hard for the telco giant, but things are starting to look positive now. This is due to its T22 strategy, the easing of the NBN rollout headwinds, increasing data consumption, and the arrival of 5G internet. Another positive is that its free cash flows appear sufficient to support its current dividends. This could mean the cuts are over.

Woolworths Limited (ASX: WOW)

A final blue chip to consider buying is this retail conglomerate. I think its strong brands, entrenched customer base, and non-discretionary nature makes for a very defensive business model. This should ensure that it continues growing its earnings and dividends over the next decade no matter what happens in the economy post-pandemic.

More reading

• Goldman Sachs names 5 reasons iron ore prices won’t crash
• Looking for dividend income? Try these 3 ASX shares
• Leading broker names CBA shares as a sell
• Top brokers name 3 ASX shares to sell right now
• Why I’d buy and hold Telstra shares for a decade

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 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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The Stockland Corporation Ltd (ASX: SGP) share price has slumped 41.34% lower in 2020 and is underperforming the S&P/ASX 200 Index (ASX: XJO) – but is it in the buy zone yet?

Why the Stockland share price has been hammered

Let’s start with what Stockland actually does. The group is a real estate investment trust (REIT) that invests in a large portfolio of commercial and residential property. In fact, Stockland’s portfolio spans residential, retail, workplace and logistics, and retirement living villages.

On the surface, the Stockland share price looks to be a bargain. A diversified real estate manager with $7 billion in assets that are trading 40% lower this year – what’s not to like?

But these aren’t normal times and investors have been spooked. Specifically, it’s quite hard to value real estate assets right now. COVID-19 restrictions have reduced demand in the retail and office sectors. That could mean fewer tenants and/or lower rent in the future which lowers asset values.

These valuation questions and hit to earnings have rocked the Stockland share price hard this year. But, state and federal governments are slowly easing restrictions, so could Stockland be undervalued right now?

Is now a good time to buy the ASX REIT?

Now, just because an ASX share has fallen lower does not necessarily make it a buy. On the other hand, a long-term investor should be able to see through the day-to-day or month-to-month noise.

The real question is whether or not the Stockland share price is appropriately valued. Do the current conditions make the Aussie REIT worth less in the future? My answer is probably.

It’s true that rents will take a long time to recover. There’s pressure right across the economy, including residential real estate with high unemployment testing asset quality.

On the other hand, I think the Stockland share price will bounce back. Stockland is a strong ASX dividend share that is currently yielding 10.17%. Of course, this may well be slashed due to soft earnings and being artificially high from the share price declines. However, I believe we’ll see more shoppers back in retail centres and continued demand for real estate assets.

So, while the Stockland share price may be worth less, I don’t think it’s worth 40% less. That means the current $2.71 per share valuation could be a steal if you’re investing for the long-term.

More reading

• ASX 200 drops 1.7%, Xero reports a profit
• ASX fundie says ASX 200 was more volatile in March than during the GFC
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• Why I’d buy and hold Telstra shares for a decade
• How to invest $1,000 like Warren Buffett today

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.

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It’s funny how you never hear people talk about their superannuation until there’s some good old-fashioned volatility in the markets. Unfortunately, it’s normally not things which I find encouraging to hear.

See, some people get the idea that when the share market is crashing, it’s then a good time to convert the capital in their super funds from ASX shares to cash or fixed-interest investments. You know, so they ‘don’t lose any more’.

This is a terrible idea and a terrible way to treat your retirement savings. Here’s why.

When people start realising the share market is ‘crashing’, it’s normally after the markets have already lost a healthy chunk of their value, say 10-15%.

By the time they convert their shares to cash within their super fund, it might be at 20%. So you’re selling your assets at a 20% discount and going to cash, locking in a substantial loss.

People usually decide to go back to shares when the markets are recovering, too. Some of the best days of positive returns in the share market often come after days of heavy selling. So it’s highly likely that anyone who is trying to convert their cash back into shares will miss most of these days.

What’s really happening is losses are being locked in, and gains locked out. It’s an awful way to invest.

What should you do with your super if there’s a market crash?

Well, if you’re more than 10 years away from retirement, either do nothing or add more cash! You have plenty of time to ride out any future crashes and benefit from buying more shares when they’re on sale. Playing around with your super fund when there’s volatility in the markets will not help your retirement fund at all.

If you’re nearing retirement and wish to be a little more conservative with your capital, the time to put this in motion is when times are good, not in the middle of a market crash. Yes, this will take a small amount of foresight and might involve giving up some potential gains. But that’s the price of reducing volatility – there’s not really a free lunch here.

So have a think about what you would do if the markets fell 15% next week. Hopefully, the answer is nothing but if it isn’t, make a plan now so you don’t have to when it’s too late!

More reading

• ASX 200 drops 1.7%, Xero reports a profit
• 3 top ASX 200 shares every investor should buy
• ASX small-cap sector rallies strongly during April
• Got $5,000 to spend? Here are 5 ASX shares you can buy today
• Goldman Sachs names 5 reasons iron ore prices won’t crash

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.

The post How to manage your super in an ASX market crash appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) fell by 1.7% today in another red day for the Australian share market.

Australia’s unemployment numbers were revealed today with the economy losing 594,300 jobs. Youth unemployment and the number of hours worked also showed a painful decline.

These job numbers are probably why the ASX 200 lost quite a bit of ground over the last two hours of trading.

There were some individual highlights within the ASX 200:

Xero Limited (ASX: XRO)

The Xero share price fell around 4.7% today after the ASX 200 accounting software business released its FY20 report to investors.

Operating revenue grew by 30% to NZ$718.2 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up 88% to NZ$137.7 million. Free cash flow grew 320% to NZ$27.1 million and Xero generated a net profit of NZ$3.3 million.

Total subscribers grew by 26% to close to 2.3 million. UK subscribers increased by another 32% to 613,000.

Xero warned that trading in the early stages of FY21 has been impacted by the coronavirus environment.

Charter Hall Group (ASX: CHC) 

The share price of the ASX 200 property group business rose by 4.25% after giving a market update.

Charter Hall reaffirmed its FY20 earnings guidance for approximately 40% operating earnings per security growth compared to FY19.

At 30 April 2020 it had $39.2 billion of funds under management (FUM) and a development pipeline of $7.3 billion. So far during the year it has seen FUM growth of $8.8 billion.  

Breville Group Ltd (ASX: BRG)

The share price of Breville jumped 6.7% higher today after reacting to a trading update and the capital raising. The share price of the ASX 200 business was up more than 10% earlier today.

Breville has already completed a $94 million institutional placement with significant support from existing investors.

In the trading update Breville said that it delivered 32% revenue growth for the period from 1 January 2020 to 30 April 2020. Revenue growth in March was 25% and in April was 21%. The gross margin in January to April 2020 was consistent with the first half of 2020.

Despite the good performance, the ASX 200 company has moved to manage cashflow and reduce cash expenses.

Returns as of 7/4/2020

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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.

More reading

• Got $5,000 to spend? Here are 5 ASX shares you can buy today
• ASX fundie says ASX 200 was more volatile in March than during the GFC
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• Why I’d buy and hold Telstra shares for a decade
• How to invest $1,000 like Warren Buffett today

The post ASX 200 drops 1.7%, Xero reports a profit appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is full of top shares that would be good additions for almost any portfolio.

ASX 200 shares are large enough to be fairly robust (compared to small caps). And outside of the ASX 20, I think there are many ASX 200 shares that have good growth potential despite the coronavirus.

Here are three of those ideas:

Service Stream Limited (ASX: SSM)

Service Stream is involved in designing, building, maintaining and operating network infrastructure. The networks it’s involved with include telecommunications, electricity, gas, water and ‘new energy’.

Underlying profit and the dividend have continued to grow attractively over the last few years and utilities will continue to be important during this period and beyond.

I think it could provide an attractive combination of dividends and earnings growth over the coming decade compared to most ASX 200 shares.

Altium Limited (ASX: ALU) 

I think Altium is one of the highest-quality shares in the ASX 200. It has very efficient, focused management that are steering the company towards achieving a global market leading position by 2025.

The electronic PCB software business has been a solid performer year after year. It’s facing short-term impacts from the coronavirus which is causing prices to fall and probably the margin too. But for the long-term I think it’s better to continue winning new clients so that after the coronavirus it has a large group of new, sticky clients that will pay full price fees year after year. It’s still aiming for 100,00 Altium Designer subscribers by 2025. 

The cloud offering of Altium 365 is an imperative part of winning over new clients. It’s why Altium is investing heavily in Altium 365 for an even better experience. 

Altium has a very solid balance sheet. In the recent update it said that it had US$77 million of cash.

I’d love to buy more Altium shares for my portfolio, but I’m waiting for a cheaper share price.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX 200 share stalwart. It has been listed on the ASX for decades and it hasn’t decreased its dividend for over forty years. That’s a great record in my opinion.

In the short-term I don’t think most investors are giving enough weight to the quality and value of its non-construction assets. If the industrial property trust was valued by the market like 50% partner Goodman Group (ASX: GMG) is, Brickworks would have a higher share price. Brickworks’ investment division also provides very defensive earnings and dividends.

Things do look tough on the construction side of things in 2020. But it won’t be like this forever. Australia and the US will continue to need building products in the future, even if it takes 12 months (or more) to recover. But Brickworks is a great business which will recover quickly once orders start coming in.

It also current offers a grossed-up dividend yield of 6.4%. I think it could be one of the best ASX 200 dividend shares.

Time to buy these ASX 2oo shares?

I think all three of these shares look like good long-term ideas to me. I’m waiting for a better share price to buy Altium shares, but Brickworks could be a great long-term buy today. 

More reading

• ASX shares I’d invest $10,000 into today
• How to build good wealth with small investments
• Top brokers name 3 ASX 200 shares to buy right now
• Revealed: 5 dividend shares for reliable income
• Is the Altium share price a buy?

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Service Stream 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 ASX saw particularly strong growth during the month of April, following the lead of global markets, as the number of active coronavirus cases locally started to ease.

The Australian small-cap sector performed especially well last month. The S&P/ASX Small Ordinaries Accumulation Index was up strongly by 14.3%, driven by share price growth across a number of industry sectors.

Investment fund manager Perennial recently released its latest monthly report, citing regenerative medicine company Mesoblast Limited (ASX: MSB) as one of the best small-cap performers. Mesoblast shares rocketed 143% higher during April as the company continues to make good progress in its trials for coronavirus patients suffering from acute respiratory distress syndrome.

Some other ASX small-cap shares that performed particularly strongly in April were ones that had seen heavy sell-offs in March and subsequently rebounded during the following month. These include online lender MoneyMe Ltd (ASX: MME) which was up by 61% and Emeco Holdings Limited (ASX: EHL), an Aussie heavy-duty equipment provider that operates in the mining services sector, up by 39%.

ASX online retail shares rally

Perennial further noted that ASX retailers with a substantial online presence also started to see strong growth. Due to the harsh lockdown restrictions, there has been a surge in online spending at specialist retail sites.

This includes Kogan.com Ltd (ASX: KGN) which saw share price growth of 49% in April. In fact, Kogan shares have rocketed 150% higher since mid-March. The company released a trading update in April, reporting a 30% increase in gross sales and a 23% jump in gross profit during the March quarter. The month of March saw particularly strong growth, with sales increasing by more than 50% on the prior corresponding period.

In other news in the online retail space, the share price of manchester and homewares provider Adairs Ltd (ASX: ADH) was up by 76% during April, while City Chic Collective Ltd (ASX: CCX) rose by 49% as it continued to serve customers with its strong online channels.

Defensive shares appreciated by the market

In addition, there were strong share price rises from some of the more defensive shares in sectors that were caught up in the wider market sell-off despite not having significant direct exposure to the pandemic.

These include broadband provider Superloop Ltd (ASX: SLC), which saw an impressive 41% rally in its share price during April, as well as Integral Diagnostics Ltd (ASX: IDX), which enjoyed a 32% share price rise.

ASX resources sector bounces back

Perennial further pointed out that the small-cap resources sector also rallied strongly during April. This was on the back of heavy recent falls and the release of quarterly production updates. Gold and base metals mining company Aurelia Metals Ltd (ASX: AMI) posted a 38% gain in April, while the larger Sandfire Resources Ltd (ASX: SFR) was up by 37%.

More reading

• These ASX shares are set to dominate the post-COVID-19 economy
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• Why Breville, Graincorp, Mesoblast, & Newcrest shares are charging higher
• With Aussie wages set to fall, could ASX 200 shares follow?
• 4 top ASX shares to invest $4,000 into immediately

Phil Harpur owns shares of Kogan.com ltd. 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 Kogan.com 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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If you’ve got $5,000 to spend, the world is your oyster. You could buy a new TV, a new iPhone or a not-so-new car.

But I think the best use of the money you have but don’t really need is investing in ASX shares. ASX shares are one of the best pathways to long-term wealth available, so why not set yourself up for the future and invest the $5,000 today!

If you do want to tread that path, here are 5 ideas to get started:

Afterpay Ltd (ASX: APT)

Afterpay is one of the best-performing shares you can buy on the ASX. In just the last 2 months, Afterpay has gone from $8 a share to over $40. I would definitely call this company a trend-setter and it remains at the vanguard of the fast-growing buy now, pay later sector. You could do a lot worse than this growth story.

Xero Limited (ASX: XRO)

Xero has an equally successful story, becoming one of the most popular accounting software programs in the country and soon (it seems), the world. Xero has a highly lucrative Software-as-a-Service (SaaS) business model, which allows for exponential revenue growth if it can keep its subscriber growth at a healthy rate.

CSL Limited (ASX: CSL)

CSL is now the largest company on the ASX, and it hasn’t claimed that crown by being a lousy ASX performer. CSL is a truly phenomenal global growth story. It only ‘IPOed’ for 77 cents back in 1994 (once you adjust for stock splits), so an investment then would have been a life-changing experience. Even though the company is now trading for over $300 a share, I still think this company has plenty of runway left and is also well on its way to becoming a formidable dividend payer.

Macquarie Group Ltd (ASX: MQG)

I’m not a big fan of investing in the ASX banks at the moment, but I do think Macquarie is a strong exception. It has very little exposure to ‘retail banking’ through mortgages and loans. Instead, Macquarie has built a successful asset management business and is also one of the best investment banks in the country. Thus, I think this company would make a great investment with current prices – they don’t call Macquarie the ‘millionaire factory’ for nothing!

iShares S&P 500 ETF (ASX: IVV)

We’ll finish with a simple choice – this exchange-traded fund (ETF). IVV tracks the largest 500 companies over in the US – the most popular index in the world. Over the past 10 years, an investment in this ETF would have returned around 15.54% per annum. You are getting top-notch US companies like Berkshire Hathaway, Alphabet, Apple and Microsoft, so need I say more. IVV is also one of the cheapest ETFs on the ASX, with a management fee of just 0.04%. 

More reading

• ASX 200 drops 1.7%, Xero reports a profit
• ASX fundie says ASX 200 was more volatile in March than during the GFC
• These ASX shares are set to dominate the post-COVID-19 economy
• 3 common mistakes millennials make investing in ASX shares
• 2 exciting ASX tech shares to buy right now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). 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 Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Alphabet (A shares). 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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