If you want become rich then I think you should start investing in shares today.

There’s a common saying that the best time to start investing is 20 years ago, the second best time is today. You could say the same thing about trees – we only get to sit in the shade of a tree today because someone had the foresight to plant a tree years ago.

It takes a long time to become rich. Becoming rich with shares doesn’t happen in a day or in a month. It takes many years, or a lifetime, of disciplined saving and investing to reach a desired financial goal or wealth position.

Why you should start investing today 

If you delay your investing journey it will dramatically reduce your final wealth balance. Shares have historically made an average of 10% a year. Whether that’s Australian shares as represented by Vanguard Australian Shares Index ETF (ASX: VAS) or international shares represented by something like iShares S&P 500 ETF (ASX: IVV).

Imagine if you give yourself 25 years to build wealth and at the end of it you have $990,000. A great total. But if you delayed and only had 24 years, you’d miss out on that last year of 10% growth and you’d only have $900,000. One year of delay could mean almost $100,000 of growth lost!

Why you should invest in shares to become rich

Why specifically shares? I think there’s a number of good reasons why shares will help you become rich. I prefer shares to property for a number of reasons.

On the one hand, I think property ‘returns’ don’t reflect the full picture. Quoted property returns usually don’t include the effects of negative gearing – which is an alternative description to ‘losing real money’. Returns usually don’t include transaction costs like stamp duty and real estate agent selling fees. The property prices quoted don’t reflect the tens or hundreds of thousands of dollars of renovations (or just repairs) that have gone into the property – it hasn’t simply been growth from a $500,000 property to $1 million with no cost to the investor. And what happens if an investment property doesn’t have a (paying) tenant? The costs are still heading out of the bank account.

With shares you can be invested in the best businesses on the ASX or even the best in the world. I think it’s these shares that will help people become rich. Don’t forget that usually the share return totals don’t include franking credits which is a big bonus for investors. Shares are pretty cheap right now because of the coronavirus. 

Which shares will help you become rich? I like the idea of investments like the iShares S&P 500 ETF, Magellan High Conviction Trust (ASX: MHH), MFF Capital Investments Ltd (ASX: MFF) and Future Generation Global Invstmnt Co Ltd (ASX: FGG).

More reading

• The importance of diversifying your ASX portfolio and how you can do it
• The smartest shares to buy if you have $2,000
• Here’s how to create a $1 million ASX portfolio by investing $1,000 a month
• How I’d invest $50,000 into ETFs
• ASX shares can help millennials retire before their parents

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think it’s fair to say that 2020 has been a bad year for dividends. Due to the pandemic, a large number of popular dividend shares have had to defer or cancel their dividends.

While this is disappointing, I’m confident that most dividend payments will resume again next year. In light of this, now could be a good time to look at the dividend shares to own in 2021 and beyond.

Here are two dividend shares I think should be considered:

Stockland Corporation Ltd (ASX: SGP)

Stockland is a property company which owns, manages and develops a diverse range of property assets. These include retirement villages, retail centres, business parks, offices, and logistics centres. Its shares have been hit very hard during the pandemic and are now down almost 50% from their 52-week high. I think this has left them trading at bargain prices for income investors. I’m not the only one that thinks this.

A recent note out of Goldman Sachs reveals that it has a buy rating and $4.43 price target on Stockland’s shares. It has been running the rule over the company and expects it to pay a distribution of ~26 cents per share in FY 2021. This equates to a whopping 9.2% distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price is down 41% from its 52-week high. Investors have of course been selling the airport operator’s shares after travel restrictions left its runways and terminals virtually empty. The good news is that Australia is now reopening and over the coming months Sydney Airport will start to see a recovery in domestic passenger numbers. While a full domestic recovery will take time and international tourism will take even longer, the company looks well-placed to pay a dividend in FY 2021.

Another recent note out of Goldman Sachs reveals that it expects Sydney Airport to pay a 29 cents per share dividend in FY 2021 and then a 37 cents per share dividend in FY 2022. If this proves accurate, it means that the company’s shares offer 5.3% and 6.7% yields, respectively, over the next couple of years. I think this is achievable and makes it well worth being patient with its shares.

More reading

• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• 3 industries that may never recover from COVID-19
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher
• Top brokers name 3 ASX 200 shares to sell next week
• What to watch on the ASX 200 next week

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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The Australian Bureau of Statistics (ABS) released the third Household Impacts of COVID-19 Survey today, conducted throughout the country between 29 April and 4 May 2020.

According to the ABS, the series is designed to provide a snapshot of how people in Australian households are faring in response to the social and economic challenges brought about by COVID-19.

The third survey collected data relating to changes to people’s job situation, working from home arrangements, personal and household stressors, and lifestyle changes, among other topics.

The results of the survey were taken from telephone interviews conducted with around 1,000 Australian households.

Key findings

On the lifestyle front, the survey highlighted changes to people’s daily routines in the period of late April to early May:

• 22% said they were eating more snack foods, such as chips, lollies and biscuits
• 58% said they were spending more time in front of their television, computer, phone, or other devices
• 29% reported less frequent consumption of takeaway or delivered meals
• 38% said they were spending more time baking or cooking.

Additionally, 21% of people reported purchasing additional household supplies, which was much lower than the 47% recorded in April. This is in line with announcements from our major ASX supermarkets Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) that trading is beginning to return to normal levels. As such, both companies have resumed home delivery services.

While ASX supermarket shares have been the beneficiaries of people cooking more at home, so too has meal kit provider Marley Spoon AG (ASX: MMM). The company, which delivers fresh ingredients and recipes to customers’ doors, has reported a surge in demand amid COVID-19.

In terms of employment, the survey found that 46% of working Australians were working from home, while 59% of respondents were working paid hours as of early May. 

The survey also found that loneliness was the most widely reported source of stress for Australians, affecting 22% of the sample, with other factors such as relationship difficulties and mortgage repayment difficulties reported as further stressors.

Importantly, the majority of Australians were continuing to keep their distance from people outside of their household (94%) and avoid public spaces (85%). The most common reasons for leaving the house were shopping for food (88%) and exercising or walking pets (73%).

What next?

This data provides some insight into how a sample of Australian households have been dealing with COVID-19 and the associated restrictions. 

The ABS followed up with the same survey respondents again on 12 May to undertake the fourth cycle of the survey. Topics include superannuation, loan repayments, childcare and schooling arrangements, and temporary living arrangements.

From a financial and investing perspective, the findings relating to superannuation will be one to watch in the wake of the government’s early access to super scheme.

The information from this fourth survey will be released later this month on 29 May 2020.

More reading

• Why is the Woolworths share price flat for 2020?
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher
• How this $70m ASX small cap is cutting down a $50bn industry
• 5 things to watch on the ASX 200 on Monday
• ASX shares that could benefit from the Internet of Food

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET 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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