I think one of the best ways to set yourself up for an early retirement is by having a passive income stream that is reliable and has the potential to grow over time.

But this doesn’t necessarily mean you should buy the highest yielding shares on the ASX.

Instead, I would suggest you buy shares which pay dividends (even if the yield is small) and have the potential to grow them strongly over the next decade or two.

Two that I think tick a lot of boxes are listed below. Here’s why I would buy them:

Goodman Group (ASX: GMG)

I think Goodman Group would be a great option for investors. I’m a big fan of the integrated commercial and industrial property group due to the way its portfolio is positioned. The quality of its portfolio has been on display for all to see in FY 2020. Despite the pandemic, Goodman has been able to reaffirm its earnings and distribution guidance this year.

This is because of its exposure to in-demand markets such as ecommerce, logistics, food, consumer goods, and the digital economy. I’m confident these positive trends will continue for some time to come. This should put Goodman in a strong position to deliver solid earnings and distribution growth for a long time to come. At present its shares offer an estimated forward 1.9% distribution yield.

Treasury Wine Estates Ltd (ASX: TWE)

Another option to consider is this wine company. Although its performance in FY 2020 has been disappointing (and not just because of the pandemic), I feel Treasury Wine is now on a path to sustainable growth. Especially after announcing its intention to spin off its Penfolds business and associated assets into a separate ASX listed company. Management believes the demerger will facilitate the creation of incremental long-term value for shareholders and I agree.

In light of this, now could be an opportune time to make a patient long term investment in its shares. Not least for its dividend. While I expect its to be cut down to a level that provides a ~2.5% yield in FY 2021, I suspect it could be back to previous levels in FY 2022 once things normalise again. This would be a fully franked 3.7% yield based on FY 2019’s dividend. After which, I expect it to grow at a decent rate over the decade that follows.

More reading

• ASX 200 down 1.8%: CSL announces new acquisition, Qantas to raise $1.9bn
• Why I would buy these outstanding ASX 50 shares right now
• This top fund manager believes dividend yields are going to 0%. Where should you invest?
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• Top brokers name 3 ASX 200 shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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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One of the best performers on the Australian share market in 2020 has been the De Grey Mining Limited (ASX: DEG) share price.

Since the start of the year, the gold-focused mineral exploration company’s shares have jumped an incredible 1,645%.

To put that into context, if you had invested $10,000 into its shares at the start of the year, you would have just short of $165,000 today.

Why is the De Grey share price rocketing higher in 2020?

Investors have been scrambling to get hold of the company’s shares this year thanks to a series of positive updates from its Hemi prospect in Western Australia.

Drilling results at the prospect have delivered outstanding results over the last few months and appear to indicate that the company is sitting atop a major resource with the added bonus of having world class infrastructure on its doorstep.

The latter will be a big positive if the prospect becomes operational in the future.

What is the latest news?

Last week its drilling activities revealed further high grades and an expanded footprint at the Aquila Zone within the Hemi prospect.

De Grey Exploration Manager, Phil Tornatora, commented: “The Aquila style gold mineralisation identified in highly altered intrusion 400m to the west is an exciting and significant development as it opens up the overall strike potential of the deposit.”

“The broad high grade mineralisation announced today is particularly encouraging demonstrating the potential to rapidly add to Aquila’s gold endowment,” he added.

Further diamond drilling is coming with the aim of extending Aquila to at least 300 metres below surface along the entire strike of the deposit. Management also notes the potential to extend Aquila a further 400 metres to the west under an interpreted shallow veneer of sediments.

Should you invest?

I’ve been very impressed with its drilling results and I’m confident that De Grey has discovered a real gem.

However, with its market capitalisation now over $1 billion, I think the easy gains are gone. In light of this, I would suggest investors wait until the full resource is known and feasibility studies are undertaken.

More reading

• De Grey Mining share price up 25%, hitting 9-year high

Motley Fool contributor James Mickleboro 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 looking for new additions to your portfolio in July, then I think the three ASX shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would buy is Appen. This growing tech company has a team of one million plus crowd-sourced experts, preparing the data for the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. And thanks to the acquisition of the Figure Eight business last year, the company now has strong offering for government customers. This is a lucrative market given that the US government has a US$5 billion AI budget and the UK government has a £2.3 billion AI budget. Overall, I believe Appen is well-positioned to continue growing its earnings at an above-average rate for many years to come.

CSL Limited (ASX: CSL)

The second five-star stock to consider buying is CSL. I think the biotherapeutics giant is a fantastic long term investment option for investors. This is due to the company’s world class CSL Behring and Seqirus businesses. These two businesses have leading therapies and vaccines, a growing plasma collection network, and extremely promising research and development pipeline. The latter contains a number of products that have the potential to generate billions of dollars of sales in the future if they are commercialised. I believe this puts the company in a position to continue generating strong returns for investors over the next decade and beyond.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

While not strictly an ASX share, I believe the BetaShares NASDAQ 100 ETF is a five-star option for investors. In fact, this exchange traded fund gives investors access to a large number of companies that are deserving of five-star status. These include Apple, Amazon, Facebook, Microsoft, Nvidia, and Google parent, Alphabet. It also includes a number of up and coming companies that could be stars of the future like online conferencing company Zoom and biotech company Seattle Genetics. I believe the majority of companies on the NASDAQ 100 are well-placed to grow at a quicker than average rate in the future. This could ultimately drive strong returns for investors over the next decade.

More reading

• 10 high quality ASX shares to buy in FY 2021
• Top brokers name 3 ASX shares to buy next week
• How I would construct a $50,000 growth portfolio
• Brokers name 3 ASX 200 shares to buy today
• These 2 ASX shares are perfect for a beginner investor

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 BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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