Tag: Motley Fool Australia

ASX dividend shares could be in the buy zone right now. The coronavirus pandemic has cast big question marks over corporate earnings in 2020.

That’s bad news in the short-term. However, I believe it presents a great chance to buy shares for a bargain price. Here are a few of my favourite companies that could be in the buy zone today.

3 ASX dividend shares to buy today

I think Telstra Corporation Ltd (ASX: TLS) could be in the buy zone. The Aussie telco is still an industry leader and its earnings may be steadier than most.

The nature of the pandemic has forced many workers home and increased demand for network infrastructure. Telstra shares are trading down 13.56% this year but that could be a bargain price. 

The company continues to invest in the future through its 5G network capabilities and could be a more nimble technology company in the future.

I like the look of another ASX dividend share at the moment, Altium Ltd (ASX: ALU). Altium shares have climbed 3.40% this year but are still yielding 1.06%. I wouldn’t be surprised to see a temporary dividend cut, but the software group could be a long-term buy for both income and growth.

Finally, I think Wesfarmers Ltd (ASX: WES) is an ASX dividend share that’s worth keeping an eye on. Wesfarmers is looking to refine its current business model by restructuring its retail arm and is sitting on a lot of cash right now.

That could be used for further acquisitions or distributed to shareholders in the coming years. Either way, I think Wesfarmers could be a stable ASX dividend share to buy and one that is currently yielding 3.94% per annum.

Foolish takeaway

If you’ve got $5,000 to invest, I think these are just some of the ASX dividend shares that are worth a look.

More reading

• 3 high yield ASX dividend shares to buy right now
• How I would build a $130,000 ASX dividend portfolio right now
• How to make a $50,000 passive income with ASX shares
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately
• 3 ASX dividend shares I would buy to beat low rates

Motley Fool contributor Ken Hall 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 Altium and Wesfarmers 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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It’s fair to say the National Australia Bank Ltd (ASX: NAB) share price hasn’t had a great run in 2020. In fact, the Aussie bank’s shares have fallen 37.72% while the S&P/ASX 200 Index (ASX: XJO) is down 17.76% this year.

So, is the Aussie bank’s share price in the buy zone or should you steer clear in 2020?

What’s been happening to the NAB share price?

The ASX bank shares are under pressure this year amid the coronavirus pandemic. The public health response has forced Aussies to stay home and many businesses have shut down.

That’s put pressure on the economy, Aussie households and corporate earnings. The big banks underpin the economy and could feel the blow of a recession harder than most. That has spooked investors in 2020 and sent the NAB share price falling lower.

NAB reported a $1,313 million half-year net profit and cash earnings of $1,436 million. That means the ASX bank’s cash earnings slumped 51.4% on the prior period or 24.6% excluding notable items.

NAB also announced plans to raise up to $3.5 billion via a fully underwritten institutional share placement of $3 billion and a non-underwritten Share Purchase Plan (SPP) to raise approximately $500 million.

The bank raised the funds at $14.15 per share, which represented an 8.5% discount to its last close price. However, the NAB share price is now trading at $15.34 per share, so is it back in the buy zone?

Is the ASX bank back in the buy zone?

I think there’s more uncertainty ahead for the ASX banks in 2020. While the government stimulus measures are helping to prop up the economy, there are question marks over what happens in September and beyond.

If restrictions continue to ease, we could see the NAB share price bounce back quickly. With the economy up and running, the economic burden on businesses and households could be eased quicker than expected.

I think NAB is a speculative buy in the current climate but could be a long-term success if you’re willing to buy and hold.

More reading

• 3 ASX 200 shares to watch this week
• 2 quality ASX shares to buy for long-term growth
• 5 ASX 200 winners and 4 losers of last week
• 5 things to watch on the ASX 200 on Monday
• Why these ASX stocks will be under the spotlight on Monday

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 was a bumper week for ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) jumped 1.71% higher.

Last week I was watching Northern Star Resources Ltd (ASX: NST), Woodside Petroleum Limited (ASX: WPL) and Wesfarmers Ltd (ASX: WES).

The Northern Star share price jumped 3.06% higher as investors looked to the safety of gold amid continued volatility. Woodside shares climbed as OPEC slashed production – a potential sign that the oil price war is coming to an end. Wesfarmers shares gained 2.53% despite announcing 75 Target store closures on Friday.

After a big week for last week’s top picks, here are the 3 ASX 200 shares that I’ll be keeping my eye on in the week ahead.

3 ASX 200 shares to watch this week

I think it’s worth watching the CSL Limited (ASX: CSL) share price this week. The biotech giant’s shares fell 3.61% lower last week and are trading at $290.93 right now.

CSL shares have had strong support around the $290-300 per share mark. I think earnings could still be steady in 2020 given CSL’s operations are spread far and wide across the healthcare sector.

Another ASX 200 share to watch is A2 Milk Company Ltd (ASX: A2M). The Kiwi dairy group’s shares fell 2.88% last week but remain up 22.80% in 2020. 

I think investors are wondering how to value the dairy company right now. Tensions with China may threaten more exports than just barley and a2 Milk generates significant revenue from its Asian sales channels.

My final ASX 200 share to watch this week is Stockland Corporation Ltd (ASX: SGP). In contrast to the other 2, Stockland shares rocketed 13.70% higher last week.

Many of the Australian real estate investment trusts (REITs) jumped in value last week as Aussies anticipated the easing of coronavirus restrictions. That’s good news for the retail REITs and their tenants, and could provide a much-needed earnings boost in 2020.

The Stockland share price is worth keeping an eye on this week to see if there’s more growth in store as the Aussie economy begins to re-open.

More reading

• Is the NAB share price a buy today?
• 2 quality ASX shares to buy for long-term growth
• 5 ASX 200 winners and 4 losers of last week
• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 growth shares I want to buy for my portfolio

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk and Wesfarmers 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 turbulent times like these, expanding your portfolio with quality, diversified, well-priced ASX shares with a proven track record is, I believe, a good way to achieve portfolio stability. Not to mention, help provide the foundation for strong shareholder returns over the next decade and beyond. 

Here are two S&P/ASX 200 Index (ASX: XJO) shares which I believe meet these criteria: Ansell Limited (ASX: ANN) and Brickworks Limited (ASX: BKW).

Ansell

Ansell is involved in the development, manufacturing and sale of gloves and protective personal equipment in the industrial and medical markets.

The manufacturer reported in a business update in late March that it has been experiencing high demand for its hand and body protection products, as these products are industry certified for protection against infections such as the coronavirus. This includes its single-use examination gloves and surgical gloves. These products are very likely to continue seeing strong demand over the next few months as the crisis continues. Although there has been reduced demand for some of its industrial products, the overall demand for Ansell’s product portfolio has been higher over the past few months.

This increased demand has helped drive up its share price. Despite an initial dip in its share price in February and the middle of March, at the time of writing Ansell was at a 52-week high of $34.82.

Even with this recent share price increase, I still think that Ansell offers a relatively good buying opportunity for investors with a long-term investment horizon.

Ansell’s significant size and geographic spread helps the company maintain a very strong competitive position. Also, new product lines position Ansell well to generate growth over the next few years, supported by a strong research and development program.

Brickworks

Brickworks has gained a strong reputation as one of the most consistently performing businesses on the ASX over the past few decades, underpinned by its diversification across a number of divisions.

The group’s Building Products division manufactures and distributes a range of bricks and other masonry products. Its property division owns a significant holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), providing the company with a strong and steady dividend income stream.

Brickworks also has a significant stake in an industrial property trust with Goodman Group (ASX: GMG), which builds and operates a range of property for industrial businesses.

Although there is always the risk of a further downturn in the building industry, I believe that the significant fall in its share price since late February by more than 30%, now offers investors a relatively good buying opportunity.

Brickworks shares also currently offer an attractive trailing dividend yield of 4.27%, which grosses up to 6.1% with full franking.

More reading

• ASX 200 shares to buy for growth and income
• Is the NAB share price a buy today?
• 3 ASX 200 shares to watch this week
• Replace your term deposit with these dividend shares
• 5 ASX 200 winners and 4 losers of last week

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ansell 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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At the weekend I looked at how $20,000 investments in a number of ASX shares have fared over the last decade.

Given the success of these investments, today I thought I would look at a few shares which I think investors ought to invest $20,000 into today for the next 10 years.

Here why I think these three top ASX shares could provide strong returns for investors:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a fintech company providing software and services to the wealth management and funds administration industries. The key product in its portfolio is the Sonata wealth management platform. Sonata allows users to connect and engage with their clients anytime, anywhere, through computers, tablets or smartphones. It is proving to be very popular with financial institutions due to the way it simplifies legacy client systems into one unified customer-centric solution. Also supporting its growth in the future will be the recent acquisitions of Midwinter and Finocomp. These have strengthened its offering and opened the company up to new and lucrative markets.

Jumbo Interactive (ASX: JIN)

Another option for that $20,000 investment is Jumbo. It is an online lottery ticket seller and the operator of the Oz Lotteries website. Its shares have fallen heavily in recent months due to concerns over its slowing growth. However, this has been caused by an increased investment in the future growth of its software-as-a-service (SaaS) business. I think this selling has been overdone and created a buying opportunity for investors. Especially when you consider its massive market opportunity. Last year management noted that approximately 7% of the world’s lottery tickets are sold online. This implies that 93% of a ~US$300 billion global market has yet to transition online. Jumbo is aiming to grow its ticket sales to $1 billion per annum by FY 2022, which is still only scratching at the surface of the overall market.

NEXTDC Ltd (ASX: NXT)

Another ASX share for investors to consider investing $20,000 into is NEXTDC. I think it is a great way to gain exposure to the rapidly growing cloud computing market. This is because NEXTDC’s world class data centres have been experiencing a material increase in demand for capacity over the last few years. And with more infrastructure expected to shift over to the cloud in the next decade, it looks well-positioned to profit greatly.

More reading

• 3 explosive ASX growth shares to buy
• Why this ASX infrastructure company could help protect your portfolio in a downturn
• 3 mid cap ASX growth shares to buy for monster returns
• 1 ASX growth company I’d buy with $2,000
• Why I’d invest $1,000 in this ASX tech share today

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd and Jumbo Interactive 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 Fortescue Metals Group Limited (ASX: FMG) share price will be on watch today as news broke on Saturday that the company had increased its stake in Cadente Copper to 20%. This cements its right to preserve its stake through future capital raisings and moreover, to participate in debt issues. The company is exploring a copper-gold porphyry in Peru.

Argentina and Ecuador are also part of Fortescue’s exploration program. 

The South American investment logic

I have worked for Andrew Forrest in the past. Like anybody else, I have worked out that when he sees something in the distance in mining, then he is probably correct. 

He went against the odds at Murrin-Murrin with the laterite nickel-cobalt mine, which required a massive and highly technological processing operation. In the past 4 years, nickel has been the stand out performer in base metals. He also went against the odds in the Pilbara mining low-grade ore using surface excavation machines. This was unheard of. 

Regardless of the current situation, copper is likely to see strong demand in the decade to come on the back of its increase in use for electric vehicles and batteries, as well as continued growth in China and India. As for gold, the precious metal is likely to see sustained high prices. The combination of uncertainty, large volumes of quantitative easing, and low interest rates work in unison to keep gold high. 

The Fortescue track record

It is hard to recall a week when Fortescue wasn’t up to something new or visionary over the past decade. At the recent Macquarie Conference, it covered its future plans. The US$1.3 billion Eliwana project. The US$2.6 billion Iron Bridge project. A US$800 million investment in energy infrastructure, including 275 kilometres of transmission lines and 150 megawatts of solar-powered generation. As always, Fortescue supports local suppliers and local contractors. 

Current position

Over the past decade, Fortescue has achieved some truly impressive compound annual growth rates (CAGR). These include 14.1% for sales, 16.8% for cash flow, 17.6% for earnings per share, and a share price CAGR of 10.8%.

At the time of writing, Fortescue is trading at a very low price-to-earnings ratio of 5.49. This is a level well below its 10-year average of 10. At this low price, you also get a company that has a dividend CAGR of 36.3% and a 12-month trailing dividend yield of 7.36%.

Regardless of any sabre rattling that goes on between the great powers, only Australia can fulfil the iron ore quantities and qualities required by China. Over the medium term, when the current tensions have subsided, I believe Fortescue will still be one of the engines of the Australian economy. 

More reading

• Here are 2 ASX dividend shares with yields over 10%
• Top brokers name 3 ASX shares to sell next week
• How to make a $50,000 passive income with ASX shares
• ASX 200 drops 1% on Friday
• ASX 200 drops 0.4%, Chinese threat to Australian iron

Motley Fool contributor Daryl Mather owns shares of Fortescue Metals Group Limited. 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 Fortescue share price: ASX iron ore major increases South American investment appeared first on Motley Fool Australia.

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If you want income then you should replace your term deposit ASX dividend shares.

Term deposits were earning more than 5% not too long ago. But those days are long gone. Term deposits are obviously still a good idea if you’re looking for capital protection. But eating into your capital to pay for your life expenses because the interest rate is so low isn’t a good prospect!

Shares come with risks of course. There are plenty of shares I wouldn’t suggest because of how unstable the dividend may be. I’d only go for ASX dividend shares that may be able to offer very reliable dividends during this coronavirus period:

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

‘Soul Patts’ is one of the best ASX dividend shares out there, perhaps the best, for dividend reliability. How does the dividend record stack up? It has increased its dividend every year since 2000. It has paid a dividend every year since listing in 1903. That’s a great record!

The investment conglomerate owns shares that are likely to keep paying the dividend (and hopefully growing it) during this period. Shares like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW) are two of the biggest sources of investment income for Soul Patts. Both of those shares increased the dividend in the recent results.

I think Soul Patts could be the best ‘set and forget’ individual ASX dividend share because its investments will evolve over time to focus on growing opportunities. It currently offers a grossed-up dividend yield of 4.7%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) that owns a variety of farm types including cattle, cotton, vineyards, almonds and macadamias.

I think it’s a great ASX dividend share for two key reasons. The first is that it aims to increase its distribution by 4% a year. I think this is attractive because it’s comfortably more than inflation. The second reason I like Rural Funds is that its forecast FY21 distribution yield is 5.9%. I think that’s a solid yield in this environment. 

The contracted rental indexation and strategy of investing into its farms for productivity improvements are powerful forces for growing the distribution.

Rural Funds’ distribution is funded by the cash net rental profit. Around 20% of that rental profit is currently being re-invested for more growth.

APA Group (ASX: APA)

APA Group is another ASX dividend share that has a very strong income growth record for investors. It has increased its distribution every year for a decade and a half.

I’ll tell you what APA Group is. It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

The infrastructure giant’s distribution is entirely funded by its cashflow. That cashflow is steadily growing over the years as new projects and investments come online. APA Group is looking for new opportunities both in Australia and in the US. It has already reconfirmed the annual distribution guidance for FY20 of 50 cents per unit, translating to a distribution yield of 4.5% today. 

Foolish takeaway

I believe each of these income ideas are great picks for long-term dividends. I’d be comfortable owning them for many years and I think they’ll provide growing income compared to a term deposit, with a much better starting yield. At the current share prices I’d definitely choose Soul Patts first.

More reading

• My ASX share for the week
• How to retire early using ASX shares
• How to reduce your work to part-time using ASX shares
• Why I would buy these quality ASX dividend shares today
• My 3 best ASX dividend shares to buy right now

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA 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.

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The S&P/ASX 200 (INDEXASX: XJO) finished the week up 1.8% on Monday’s opening level. This was against a backdrop of continuing trade tensions with our largest trade partner, April figures showing a 17.9% drop in April sales, and Wesfarmers Ltd (ASX: WES) announcing mass closures of Target stores nationally, and the big 3 iron ore miners rising approximately 4% under trade threats.

The ASX is clearly in a bizarre place. Like most of the world we take our lead from the US stock exchanges; which are being driven largely by the large tech shares. 

These are some of the bigger news stories in ASX 200 trading last week that went almost totally under the radar.

5 ASX 200 Winners

The Alliance Aviation Services Ltd (ASX: AQZ) share price had a truly phenomenal week, rising 27.96% over the week. On Wednesday the company retracted its suspension of guidance due to Covid-19. It announced it was on target for a profit before tax of over $40 million. The company has been buoyed by its fly-in-fly-out services to resource companies and record charter flights. Alliance was floated as a takeover target for Qantas Airways Limited (ASX: QAN) last year. 

Takeovers in general have been sparse since the start of the pandemic. The Village Roadshow Ltd (ASX: VRL) share price leapt a further 16.9% last week on the back of news about a conditional buyout offer by BGH Capital. The offer still represents a premium of 12.5% to Friday’s closing price.

Criticism of the opportunistic and predatory nature of the offer by US investor and 5% stakeholder Mittleman Brothers raised the spectre of a second offer for the embattled entertainer.

The Worley Ltd (ASX: WOR) share price was another ASX 200 winner this week. It jumped by 12.42% over last week. The rising WTI oil price combined with the announcement of two global framework agreements with BP International raised the likelihood of strong near term performance. 

The A-REIT sector was among the ASX 200 winners last week across the board. The Stockland Corporation Ltd (ASX: SGP) share price rose 11.64% over the week. A very confident Stockland CEO Mark Steinert was interviewed by the ABC on Wednesday. He discussed rising trends in foot traffic and the progress around difficulties with Premier Investments Limited (ASX: PMV). Steinert also spoke positively about the residential real estate market.

Likewise the Scentre Group (ASX: SCG) share price rose by 10.89%. Scentre announced the successful raising of AUD$2.3 billion from the US bond markets on May 20.

4 share price falls

As well as the ASX 200 winners, last week also saw a few share price falls. However, the magnitude of share price slides has been lower than what we have come to expect. 

The Austal Limited (ASX: ASB) share price fell by 9.74% over the week. Investors are still reeling from the company’s loss of a competitive tender worth US$5.5 billion to Italy’s Fincantieri (FCT.MI).

Transmission utility Ausnet Services Ltd (ASX: AST) saw its share price drop by 6.84% over the week. The company had recently announced it was looking into equity raising as one of its options to fund growth. The market is treating the share is if this process has commenced. 

Regis Resources Limited (ASX: RRL) saw its share price fall by 5.5% despite a wave of good news over the past month. 

CSL Limited (ASX: CSL) also saw its share price fall by 5.49% last week. Likely as a result of investors taking profits off the table. 

More reading

• 5 things to watch on the ASX 200 on Monday
• Why these ASX stocks will be under the spotlight on Monday
• Got $2,000? Here are 2 ASX 200 healthcare shares to buy today
• How to make a $50,000 passive income with ASX shares
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately

Daryl Mather owns shares of Austal Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited and CSL Ltd. 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 5 ASX 200 winners and 4 losers of last week appeared first on Motley Fool Australia.

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I continue to believe that income investors would be better off with ASX dividend shares than term deposits.

Especially given the outlook for interest rates in Australia. According to the latest weekly economic report by Westpac Banking Corp (ASX: WBC), it continues to see the cash rate remaining at 0.25% for a long time to come.

But which ASX dividend shares should you buy? Here are three that I would snap up today:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider buying is BWP. It is a real estate investment trust with a focus on warehouses. Most of BWP’s warehouses are leased to hardware giant Bunnings, which is owned by Wesfarmers Ltd (ASX: WES). Interestingly, Wesfarmers is also a major BWP shareholder with a ~23.6% stake. I think this is a big positive as it is unlikely to do anything (vacate properties en masse, etc) that would negatively impact BWP’s performance and share price. At present I estimate that it offers investors a forward 5.2% yield.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX dividend share to consider buying is Commonwealth Bank. Although the banks are struggling right now because of the pandemic, with the economy now reopening, I’m optimistic that the worst is behind them. Especially after they collectively announced billions of dollars of provisions over the last few weeks. And while Commonwealth Bank will almost certainly be forced to cut its dividend in FY 2021, the pullback in its share price means it is likely to still provide a very generous yield. I estimate that its shares offer a forward fully franked yield of 6.2%.

Rio Tinto Limited (ASX: RIO)

A final dividend share to consider buying is Rio Tinto. It feel it would be a great option for income investors that are not averse to investing in the resources sector. The mining giant has been a strong performer over the last few years and looks set to continue this trend in FY 2020. Especially given how iron ore prices remain at lofty levels despite the pandemic. I expect this to lead to strong free cash flows and big dividends for shareholders. In fact, last week Morgans suggested that iron ore prices could continue to rise and believes its shares currently offer a fully franked ~9% FY 2021 dividend yield.

More reading

• Top brokers name 3 ASX dividend shares to buy
• How $1,000 can be enough to change your money mindset
• Is the Wesfarmers share price a buy?
• How to turn $20k into $1.25 million in 10 years with ASX shares
• ASX 200 drops 1% on Friday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Wesfarmers 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 high yield ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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My ASX share for the week is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

The share price of Soul Patts is currently down by 21% compared to where it was before the coronavirus smashed the market. Some quality ASX shares have actually completely recovered to where they were before. Soul Patts isn’t there yet.

The investment conglomerate is a regular favourite pick of mine, but it’d be my ASX share pick for the week for two key reasons over the next few days.

TPG Telecom Ltd (ASX: TPM) merger continues

TPG is one of the largest telecommunication companies in Australia and it’s about to get even bigger when it merges with Vodafone Australia. The two telcos have been trying to merge for some time. They were finally victorious in court against the ACCC and are moving forward.

The date has now been set for the shareholder vote to merge the two telcos – 24 June 2020. Not only will the merger bring together two complementary businesses with combined infrastructure, but it will lead to a large special dividend to TPG shareholders such as Soul Patts.

The certainty of the merger going ahead should be a boost for the TPG share price and therefore the Soul Patts portfolio too.  

Soul Patts is my ASX share of the week because it has stood the test of time

Soul Patts has been listed on the stock exchange since 1903. Think of all the things it has already survived through. Wars, recessions and other global infections like the Spanish Flu.

I think Soul Patts offers more security than most other businesses and most other types of investments. It’s built to last for decades. That’s why it’s my ASX share for the week and indeed for the decades ahead. 

I believe it has a safe balance sheet, with long-term focused investments and a pleasing, growing dividend. I think the Milners and CEO Todd Barlow are very aligned with their share holdings.

As Soul Patts increases its diversification with more investments, such as a planned partnership into regional data centres, it makes me even more confident about Soul Patts’ future.

Foolish takeaway

Soul Patts is my ASX share for the week. I plan to be a very long-term shareholder. The Soul Patts share price looks very good to me today, which is why I’d buy some more this week after the positive TPG news.

More reading

• How to retire early using ASX shares
• How to reduce your work to part-time using ASX shares
• My 3 best ASX dividend shares to buy right now
• 2 ASX shares I plan to hold til I’m 100
• 3 Warren Buffett ASX dividend shares to buy right now

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 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.

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