Tag: Motley Fool Australia

Given how low interest rates have fallen, if I had $50,000 sitting in a savings account, I would consider putting it into the share market where the potential returns are vastly superior.

But where should you invest these funds? There are a lot of quality options for investors to choose from, but three that I believe could generate strong returns for investors in the future are listed below:

a2 Milk Company Ltd (ASX: A2M)

This infant formula and fresh milk company is one of my favourite growth shares. Over the last five years its shares have smashed the market thanks to its explosive profit growth. This has been driven by its expanding fresh milk footprint and the unquenchable appetite for its infant formula in China. Pleasingly, despite its incredible sales growth in the key market, it still only has a consumption market share of 6.6%. I believe this gives a2 Milk Company a long runway for growth over the next decade.

Kogan.com Ltd (ASX: KGN)

Another share which I think could grow materially over the next decade is Kogan. I believe the ecommerce company is well-positioned to benefit from the shift to online shopping which has been accelerated by the pandemic. Especially given the increasing popularity of its products and its growing customer base. Kogan recently revealed that 126,000 active customers were added during May, to bring the total to 2,074,000. This was despite many retail stores reopening during the month. This strong customer growth has underpinned the more than doubling of its sales and earnings quarter to date.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX share that I believe could generate strong returns for investors over the long term is Pushpay. This exciting tech company provides a donor management and engagement solution that serves over 10,500 churches around the world. The increasing demand for its platform has led to stellar operating revenue and profit growth over the last few years. Pleasingly, it is still scratching at the surface of its addressable market. And due to the quality of its offering, I remain confident it will win a greater slice of this market over the next decade. This should drive strong earnings growth as it scales.

More reading

• Could these ASX shares be the future dividend stars that make you rich?
• 10 ASX 200 shares that are fit for the Queen
• 3 top ASX 200 shares to buy next week
• Building a $100,000 portfolio with Afterpay shares and 3 other ASX companies
• What ASX shares should you invest in during a bull market?

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 I would invest $50,000 into ASX shares right now appeared first on Motley Fool Australia.

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It may seem counterintuitive, but if you’re looking for the best dividend shares to own, it doesn’t necessarily mean you should be buying the ones with the most attractive yields.

I think the best example of this is biotherapeutics company CSL Limited (ASX: CSL).

Very few people think about dividends when they think of CSL. I feel this is completely understandable, given that its shares only offer a trailing 1% dividend yield.

However, anyone that invested in the CSL IPO will not agree with this view. I suspect they will be counting down the days to the next dividend payment from the healthcare giant.

As I mentioned here recently, if you were lucky enough to buy CSL’s shares at its IPO, you could’ve picked them up for a stock-split-adjusted price of $0.76 per share.

Let’s say you bought $20,000 worth of its shares at that point. You would have ended up with approximately 26,316 shares.

We’re not going to focus on what they would be worth today (a lot!), instead we’re going to focus on the dividends these shares would have received this year.

Over the last 12 months, CSL has paid its shareholders two dividends. A final dividend in October 2019 of $1.455 per share and an interim dividend in April of $1.471 per share. Combined, that’s a total of $2.926 per share.

This means that those 26,316 shares you received from a $20,000 investment at its IPO, generated $77,000 of dividends over the last 12 months. That’s almost four times the original investment!

I feel this demonstrates why companies with strong growth potential can become dividend stars even if they only offer small yields.

Which shares could be future dividend stars?

I think three growth shares that could become future dividend stars are fintech company Bravura Solutions Ltd (ASX: BVS), lottery ticket seller Jumbo Interactive Ltd (ASX: JIN), and ecommerce company Kogan.com Ltd (ASX: KGN).

At present Bravura’s shares offer a 2% yield, Jumbo offers a 3.1% yield, and Kogan offers a 1.4% yield.

I believe all three are well-positioned for long term growth thanks to favourable tailwinds, strong businesses, and massive market opportunities. This could make it worth buying them today for the dividends of tomorrow.

More reading

• 10 ASX 200 shares that are fit for the Queen
• 3 ASX shares for a stress-free life
• Where I’d invest $2,500 in ASX shares today
• Invest like Warren Buffett with these ASX 200 shares
• Should you buy ASX shares or hold cash right now?

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 Bravura Solutions Ltd and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Kogan.com ltd. The Motley Fool Australia has recommended Bravura Solutions 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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Across the past week, Vicinity Centres (ASX: VCX) shares are up by 14.5%. Vicinity is also easily the most traded large-cap share this week on the entire ASX. Last Monday, the real estate investment trust (REIT) announced its intention to carry out an immediate share placement worth $1.2 billion to take pressure off its balance sheet. Eligible investors were able to participate at an 8.1% discount to the last close price of $1.61 on 29 May 2020.

It also plans an additional security placement for $200 million. Last Tuesday it followed this with an announcement that it would cancel its distribution payment for the 6 months to June 30 this year.

The balance sheet

The capital raising has had a large impact on the REIT’s balance sheet. Namely, it reduced the company’s gearing from 34.9% down to 26.6%. Net tangible assets per security (NTA) have reduced to $2.23 from $2.40 pre-placement. Lastly, the REIT is now sitting with cash and unused debt facilities valued at $2.6 billion. 

This has clearly impressed investors who have piled into the share. It has also had an impact on several other REIT’s and real estate companies. 

“Stay at home” orders and some forced closures have had a unique impact on Vicinity Centres. However, the company has announced that foot traffic is now 74% of the prior year, from a low of 50% in April 2020. Approximately 80% of stores across the portfolio are now trading, from a low of 42% in April 2020.

While revenue is down for this period as the REIT moves to help its retailers, it is taking a raft of cost control measures.

Most large-cap REIT’s on the ASX enjoyed share price gains during the week. At the time of writing this includes Mirvac Group (ASX: MGR), Scentre Group (ASX: SCG), Stockland Corporation Ltd (ASX: SGP) and GPT Group (ASX: GPT).

The case for Vicinity Centres

As is clear above, this REIT is very tightly managed and a good custodian of investors assets. It is currently selling at a price-to-earnings ratio of 5.62. This is lower than many of its large-cap real estate stablemates.

At the current price, it has a twelve-month trailing average distribution yield of 9.23%. This is higher than its sector large-cap contemporaries. While it has cancelled the current distribution it has a prior record of paying a stable distribution every year.

Over the medium term, I believe Vicinity Centres is the best value opportunity among all of the large-cap REIT’s and real estate developers. 

More reading

• Is this ASX small cap the best placed to benefit from the $700m HomeBuilder grant?
• Why Alumina and Stockland share prices could outperform in coming weeks
• 2 ASX REITs to buy with $1,000 today
• Top brokers just upgraded these 3 ASX 200 stocks to buy
• Meet the ASX stocks to benefit from the new $688m home stimulus

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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 Why I think the Vicinity Centre share price could be a great buy on Tuesday appeared first on Motley Fool Australia.

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The Australian share market is closed today for the Queen’s birthday. In the spirit of this holiday, I thought I would look for 10 ASX 200 shares that I think are fit for a queen.

The 10 shares I have chosen are listed below. Here’s why I think they should be in Buckingham Palace’s portfolio:

a2 Milk Company Ltd (ASX: A2M)

The first ASX 200 share to consider buying is a2 Milk Company. It is a New Zealand-based infant formula and fresh milk company with a focus on A2-only products. This point of difference has gone down well with consumers. This is particularly the case in China where it sales continue to grow rapidly. 

Afterpay Ltd (ASX: APT)

Another option to consider is Afterpay. I think this payments company could be a fantastic long term investment due to the way it is revolutionising the payments industry. It still has a significant runway for growth in the United States and opportunities to expand into mainland Europe and Asia.

Altium Limited (ASX: ALU)

Altium is an award-winning printed circuit board (PCB) design software provider. I think it is a standout buy due to its leading position in a market exposed to the Internet of Things boom. I expect the proliferation of electronic devices to lead to increasing demand for its software over the next decade.

Appen Ltd (ASX: APX)

Appen is another exciting ASX 200 share with enormous promise. Its million-plus team of crowd sourced experts prepare the data that goes into the artificial intelligence and machine learning models of some of the biggest tech companies in the world. Given how these markets are expected to grow materially in the future, Appen looks well-placed to profit.

Cochlear Limited (ASX: COH)

I think Cochlear would be another great option. It is one of the world’s leading hearing solutions companies and has a long track record of delivering earnings growth. I believe this trend will continue for a long time to come thanks to the ageing populations tailwind.

CSL Limited (ASX: CSL)

Another ASX 200 share which I would buy is CSL. I think the biotherapeutics company’s shares can continue to be market beaters over the next decade. This is due to the increasing demand for its immunoglobulins, its world class plasma collection network, growing demand for influenza vaccines, and its burgeoning research and development pipeline.

IDP Education Ltd (ASX: IEL)

I think it would be worth considering IDP Education. It is a provider of international student placement services and English language testing services. I’ve been very impressed at the way the company has been performing over the last few years and expect more of the same over the next decade.

Nanosonics Ltd (ASX: NAN)

Another ASX 200 share to consider buying is Nanosonics. I’m a big fan of the infection control specialist due to its very positive long term outlook. Its trophon EPR disinfection system for ultrasound probes has a massive market opportunity and could alone support solid earnings growth over the next decade. But the upcoming launch of new products make the investment proposition even more attractive.

REA Group Limited (ASX: REA)

REA Group is a digital advertising company that operates Australia’s leading property websites. It also operates real estate websites in Europe, Asia, and the United States. While trading conditions are tough now, I expect these headwinds to ease once the pandemic passes. And when they do, I believe its earnings growth will accelerate once again.

SEEK Limited (ASX: SEK)

A final ASX 200 share to consider buying is SEEK. I’m very positive on its long term outlook due to the strength of its core ANZ business and the growth potential of its international operations. This is particularly the  case with its China business. I believe it has the potential to underpin strong earnings growth over the next decade. 

More reading

• Is the Macquarie share price the best ASX bank to buy?
• 3 ASX 200 blue chip dividend shares to buy in June
• Could these sensational ASX shares help you beat the market?
• 3 top ASX 200 shares to buy next week
• 3 ASX shares for a stress-free life

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium, Cochlear Ltd., CSL Ltd., Idp Education Pty Ltd, and Nanosonics Limited. The Motley Fool Australia owns shares of A2 Milk, AFTERPAY T FPO, and Appen Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Nanosonics Limited, REA Group Limited, and SEEK 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 Macquarie Group Ltd (ASX: MQG) share price has been hit hard by the coronavirus concerns in 2020.

Macquarie shares slumped 52.41% lower between 21 February and 23 March as the S&P/ASX 200 Index (ASX: XJO) slumped into a bear market.

Investors were clearly worried about the pandemic’s impact on the Aussie banks.

We saw many banks report billion-dollar impairments while an oil price war also weighed on valuations.

But the Macquarie share price has been on a solid run and edged 0.42% higher in Friday’s trade. That means the ASX bank share climbed 7.30% higher in the last week.

So, with all the volatility, is Macquarie the best bank share to buy today?

Why the Macquarie share price could be a bargain

I like to look at the relative value of Macquarie versus its other major bank peers.

The National Australia Bank Ltd (ASX: NAB) share price is down 20.91% in 2020. Similarly, Westpac Banking Corp (ASX: WBC) shares have fallen 22.45% lower this year.

In contrast, the Macquarie share price is down 14.40%. That says to me that investors are somewhat more bullish on Macquarie versus the other ASX banks.

That could be for good reason, too. Macquarie isn’t so much a retail bank as it is a business and investment bank.

That means Macquarie generates significant earnings from investments like infrastructure and its corporate banking compared to home loans for the other ASX banks.

No one knows if that will be a good or bad thing in 2020. However, I think diversified and strategic investments could translate to some big wins for Macquarie.

The Macquarie share price closed at $118.00 per share on Friday. That means a price to earnings (P/E) ratio of 13.86 right now.

That makes it about on par with Westpac (14.11) and cheaper than NAB (17.48) right now.

Foolish takeaway

There’s no such thing as a sure thing in ASX bank shares right now. However, the Macquarie share price could be a cheap relative buy if it outperforms its major bank peers in 2020.

More reading

• 10 ASX 200 shares that are fit for the Queen
• 3 ASX 200 blue chip dividend shares to buy in June
• 3 top ASX 200 shares to buy next week
• Where I’d invest $2,500 in ASX shares today
• Top brokers name 3 ASX 200 shares to sell next week

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 Macquarie share price the best ASX bank to buy? appeared first on Motley Fool Australia.

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The ASX 200 is home to a good number of blue chip shares which pay dividends.

Three which I think would make great additions to a balanced portfolio are listed below. Here’s why I rate them:

Coles Group Ltd (ASX: COL)

One of my favourite blue chip dividend shares is this supermarket giant. I’m a big fan of the company due to its defensive qualities and solid growth prospects. The latter is thanks to its refreshed strategy. This strategy is aiming to cut costs materially through efficiencies and automation. Together with its long track record of delivering solid same store sales growth, I believe Coles is well-placed to grow its earnings and dividends over the next decade. Currently, I estimate that its shares offer a forward 4% dividend yield.

Macquarie Group Ltd (ASX: MQG)

Another blue chip ASX dividend share to consider buying is Macquarie. I like the investment bank due to the quality and diversity of its operations. This diversity means Macquarie can often grow its earnings when the big four banks are struggling. And while the pandemic is very likely to weigh on its performance in the near term, I believe it will bounce back when the crisis passes. Currently, I estimate that its shares offer investors a partially franked 4% FY 2021 dividend yield.

Woolworths Limited (ASX: WOW)

Finally, I think this conglomerate would be another top blue chip dividend share to buy. Woolworths is best known for its eponymous supermarket business, but also has a number of other businesses in different markets. These include Big W, BWS, Dan Murphy’s, and a large number of hotels/pubs. I think these are quality businesses and the majority of them have defensive characteristics and solid growth potential. Overall, I think this makes Woolworths worth considering with a long term view. At present I estimate that its shares offer investors a forward fully franked 3% dividend yield.

More reading

• 3 top ASX 200 shares to buy next week
• Where I’d invest $2,500 in ASX shares today
• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• How mum and dad investors are beating fund managers at their own game

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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.

The post 3 ASX 200 blue chip dividend shares to buy in June appeared first on Motley Fool Australia.

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Over the last 30 years the Australian share market has provided investors with an average total return of ~9.5% per annum. This is roughly in line with what the U.S. share market has achieved historically.

It is worth remembering that this is the average, which means some shares outperformed and others underperformed.

This also means that the more shares you have in your portfolio that outperform, the better your chances of beating the market.

But which shares could beat the market in the future? While picking outperformers over three decades is probably impossible, I think a decade is possible.

Three ASX shares that I think have the potential to be market beaters throughout the 2020s are listed below. Here’s why I rate them highly:

Appen Ltd (ASX: APX)

The first future market beater could be Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence models. It provides its services to many of the world’s biggest tech giants including Facebook and Microsoft. I believe this is a testament to the quality of its offering. And with demand for these services expected to continue to grow at a strong rate due to the increasing importance of artificial intelligence, I believe the future is very bright for Appen.

NEXTDC Ltd (ASX: NXT)

Another ASX share which I think could beat the market over the long term is NEXTDC. It is a data centre operator with a portfolio of world class centres in key locations across Australia. The company has been experiencing significant and growing demand for its services over the last couple of years. This has been driven by the shift to the cloud and the ever-increasing amount of data being generated by consumers and businesses. I expect more of the same over the next decade as the shift to the cloud accelerates.

ResMed Inc. (ASX: RMD)

Finally, I think this sleep treatment-focused medical device company’s shares could beat the market during the 2020s. This is thanks to ResMed’s market-leading products and massive market opportunity. Management estimates that only ~20% of sleep apnoea sufferers have been diagnosed. Given the growing awareness of the sleep disorder, I believe more diagnoses to be made in the coming years. I expect this to underpin strong earnings growth for the foreseeable future.

More reading

• Can you get rich by investing $5,000 a year into ASX shares?
• Why the Appen share price fell nearly 5% today
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
• Why the Appen share price could come under pressure today

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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Right now, I believe that are a number of small cap ASX shares that have the potential to grow into much larger entities in the future.

Three small cap shares which I feel would be worth keeping a close eye on are listed below. Here’s why I like them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share to watch is Alcidion. It is a healthcare informatics solutions company which provides software that improves the efficacy and cost of delivering services to patients. Its software also helps to reduce hospital-acquired complications, which can ultimately save lives. I believe Alcidion is well-positioned for growth thanks to the trend for healthcare organisations to shift to a paperless environment. And while the pandemic could stifle its near term growth, I remain confident in its long term outlook.

Medadvisor Ltd (ASX: MDR)

A second small cap ASX share to watch is Medadvisor. It is a healthcare technology company which is focused on personal medication adherence. Medadvisor’s app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information, and reminder system. This has been designed to ensure correct and reliable medication use. Another product which I feel has a lot of potential is its telehealth solution. This allows patients to attend GP consultations from the comfort of their own home.

Serko Ltd (ASX: SKO)

A final small cap share to watch is Serko. It is a technology company focused on corporate travel and expense management. It was growing at a very strong rate prior to the pandemic. This was driven partly by the increasing demand for its Zeno product. Zeno revolutionises the world of online travel booking technology and expense management. Demand for its services will inevitably be impacted by the current crisis, but I expect it to bounce back strongly once conditions ease.

More reading

• Are these exciting small cap ASX tech shares the next Afterpay?
• 3 exciting small cap ASX healthcare shares to watch
• 3 exciting small cap ASX shares that should be on your watchlist
• Could these small cap ASX shares be the next Afterpay?
• 3 exciting ASX healthcare shares to watch in the 2020s

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 Alcidion Group Ltd, MedAdvisor, and Serko Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd, MedAdvisor, and Serko 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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S&P/ASX 200 Index (ASX: XJO) shares are a good hunting ground for top ideas.

ASX 200 shares are big enough that they can probably survive any economy difficulties. But they’re small enough, outside of the ASX 20 at least, to have plenty of growth potential.

Here are three exciting ASX 200 shares I’d buy next week:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk has been one of the best ASX 200 growth shares over the past few years. It has expertly created a portfolio of quality products which is really resonating with consumers in Australia and Asia. It’s still seeing excellent growth here and broad.

I’m particularly attracted to A2 Milk because of the ongoing geographical expansion of its distribution. It’s steadily growing its footprint in the US. It will soon also be generating earnings from Canada as well.

It’s a great ASX 200 share with an impressive profit margin. These are the types of businesses that just keep winning.

InvoCare Limited (ASX: IVC)

InvoCare is another business which is recognised for having a quality service. The funeral business runs the White Lady Funerals brand, as well as low-cost options.

Many other businesses have almost recovered to their pre-coronavirus highs. But not InvoCare. The ASX 200 funeral operator’s share price is still down 23% from 28 February 2020. It’s actually down 33% from the July 2019 share price.

Obviously the coronavirus restrictions won’t have helped FY20 earnings. But Australia and New Zealand have thankfully barely suffered any COVID-19 deaths. Indeed, it may have reduced other types of deaths (like car crashes and so on). Morbidly, this may just mean delayed revenue rather than lost revenue. 

The ASX 200 share is still exposed to the long-term ageing demographic tailwinds. In today’s low interest environment, this type of business should be more valuable than before.

Brickworks Limited (ASX: BKW)

Investing in unloved businesses when there’s a clear path for them to return to normal can be a good tactic.

There’s a lot of pessimism about the construction sector at the moment. I think that means it’s a good time to invest. The current slowdown will only be temporary. When the economy bounces back we’ll probably see construction return too.

The ASX 200 share is diversified across different building products, so some areas of the business will be able to make up for the others during this time.

Don’t forget about the defensive assets of the industrial property trust and the shares it owns of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). These provide reliable earnings and cashflow. 

Foolish takeaway

Over the next five years I think A2 Milk will be the ASX 200 share (in this article) to make the biggest return. It’s trading at a reasonable price for all of the growth that it may generate with its global aspirations. However, at a guess over the next four months (when investors will get to see the upcoming result in the next reporting season), I reckon InvoCare could be the best contrarian pick.

More reading

• 3 ASX shares for a stress-free life
• Where I’d invest $2,500 in ASX shares today
• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• How mum and dad investors are beating fund managers at their own game

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended InvoCare 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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I think some ASX shares are capable of providing people with an (economic) stress-free life.

All businesses may see some volatility from time to time. That’s just what the share market is – different buyers and sellers deciding what price they’re happy to transact at.

Some share prices may be very volatile like Afterpay Ltd (ASX: APT) and Qantas Airways Limited (ASX: QAN).

But I think there are some ASX shares can provide more of a stress-free life:

CSL Limited (ASX: CSL)

CSL may be the most consistent blue chip on the ASX. Health and sickness isn’t really decided by economic cycles, so demand for CSL’s products is pretty consistent. Indeed, the company is one of the ones involved in trying to solve the coronavirus problem for the world.

The company has reaffirmed its profit guidance for FY20 and it’s steadily growing its earnings year after year. It’s a very reliable ASX share.

I really like that CSL is continually investing into research and development which will open up future earnings streams.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which invests in the world’s best businesses. I know I can sleep better at night being invested in high-quality businesses rather just cheap ones.

Some of the businesses it’s invested in right now are: Alibaba, Alphabet, Microsoft, Tencent, Facebook, Visa, Mastercard and Reckitt Benckiser. These aren’t ASX shares, but we can get indirect access to them on the ASX.

Its portfolio is set up to be defensive in ‘normal’ market declines. The businesses it’s invested in are growing over the long-term too.

I like that sometimes we get the opportunity to buy Magellan Global Trust at a net asset value (NAV) discount of more than 5%.

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

Soul Patts could be one of the easiest ASX shares to be invested in for the long-term. It’s an investment conglomerate that has been operated for over a century. It will probably still be around long after we’ve looked at our portfolios for the last time.

It’s invested in a wide array of different businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV). It also has some unlisted assets like swimming schools, agriculture and soon (reportedly) regional data centres.

The ASX share isn’t likely to produce huge returns after decades of strong growth, but it could outperform the index whilst paying an ever-growing dividend.

Foolish takeaway

Each of these ASX shares has long-term growth prospects but they’re also defensive. At the current prices I think I’d probably go for Soul Patts because I’m not sure US share prices are great value right now.

More reading

• 3 top ASX 200 shares to buy next week
• Where I’d invest $2,500 in ASX shares today
• How to replace your entire wage with dividends
• Invest like Warren Buffett with these ASX 200 shares
• 3 ASX dividend shares for retirees

Tristan Harrison owns shares of MAGLOBTRST UNITS and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of AFTERPAY T 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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