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3 stocks I’d buy with $5,000 today

Sometimes it’s difficult to decide which stocks to invest in when there are so many out there. Perhaps the best strategy is to split up your capital into three different businesses instead of one when making a purchase.

If I were investing $5,000 today, here are three businesses that would be on my short list:

Crown Resorts Ltd (ASX: CWN)

Crown is one of Australia’s leading luxury resort and entertainment businesses with a market capitalisation of $8.35 billion.

The share price was hit hard when news that some employees were arrested became known. The negativity was regarding the potential collapse of VIP gaming revenue that comes from Chinese nationals visiting Australia to gamble.

Crown has a pipeline of exciting projects in Australia including the new casino in Sydney’s Barangaroo and the new hotel in Melbourne. This could drive the profit and share price higher in future years.

The current price could be attractive because of short-term negativity, whilst there is long-term potential for the business to grow strongly.

Crown is trading at 20.8x FY17’s estimated earnings.

Hansen Technologies Limited (ASX: HSN)

Hansen is a global provider of billing software to utility companies, telecommunications and pay TV operators with around 200 clients in 40 countries. It currently has a market capitalisation of $622 million.

The share price has actually fallen by 28% since October 2016, I think this provides a good entry price for a growing, defensive business that can keep making acquisitions to boost its business.

Hansen is trading at 23.7x FY16’s earnings with a grossed-up dividend yield of 2.97%.

BWP Trust (ASX: BWP)

BWP is the real estate investment trust (REIT) that focuses on owning well-located Bunnings Warehouse properties and leases them to Wesfarmers Ltd’s (ASX: WES) Bunnings.

The recent closure of Woolworths Limited’s (ASX: WOW) Masters has meant some Bunnings will be relocated to Masters sites. Some of BWP’s properties will be left untenanted. It is for this reason (as well as the US Federal Reserve potentially raising interest rates) that the share price is declining.

This could be a good time to buy BWP whilst sentiment is negative and the dividend yield on offer is getting higher.

BWP is currently trading with a trailing unfranked dividend yield of 6.23%.

Foolish takeaway

I think all three of these businesses are trading at attractive value. If had to decide my order of preference at the current prices it would be Crown, then Hansen, and finally BWP. If none of these businesses look attractive to you, then these three great blue chips could be exactly what you want.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia owns shares of Hansen Technologies. 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 Bruce Jackson.

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