Around two weeks ago I named three shares I would buy with $20,000 today, which included Ramsay Health Care Limited (ASX: RHC), Dicker Data Ltd (ASX: DDR) and Catapult Group International Ltd (ASX: CAT).
Pleasingly those stocks are up between 2% to 18% since then, with the trio of shares boasting a healthy average dividend yield too thanks to the circa 7.5% yield on offer from Dicker Data in particular.
However, one of the keys to investing success is to invest regularly over time with any spare cash you may have. Especially given the paltry returns available from cash in the bank at the moment.
Furthermore, the best thing about the share market is its potential to offer income and capital growth, but only if you find good companies on attractive valuations.
As such I’ve named five companies below that look to tick the boxes for investors.
Westfield Corp Ltd (ASX: WFD) is the trophy shopping centre operator at prime locations in major global cities such as New York, Los Angeles and London. It also has a big development pipeline and offers a decent mix of defensive earnings, value, yield and growth based on its current valuation of $8.70. As such I would allocate $12,500 to Westfield shares today.
TPG Telecom Ltd (ASX: TPM) is a founder-led business that has been sold down by investors thanks to concerns over the impact of the NBN on its residential internet business and its recent commitment to spend heavily building a mobile business. These are clear risks, but they look built into a share price of $5.55 given this business is extremely well run and has several growth levers to pull ahead of it. I would allocate $12,500 to it today.
Nanosonics Ltd. (ASX: NAN) is the medical disinfectant device business that is growing like a weed, but has been sold off by investors recently probably on valuation grounds. It has an experienced management team and big global growth opportunity over the long term, which means I would allocate $5,000 to it with shares at $2.64 today.
ResMed Inc. (CHESS) (ASX: RMD) is the sleep treatment specialist that is also moving into the cloud and software-as-a-service medical technology space. It’s a market leader that is being well supported by U.S. investors and with the Australian dollar’s potential to edge lower over the next 12-24 months the shares look at buy at $10 today. As such I would allocate $7,500 to ResMed today.
XERO FPO NZ (ASX: XRO) is the cloud-accounting business that operates in large globally addressable markets. Many businesses still complete their accounts with Excel spreadsheets or other desktop applications, whereas Xero is letting them store their accounting data in the cloud, while offering online connectivity to a wealth of banking and other financial services partners. As such I’m not betting against its long-term growth prospects and believe the stock is a buy at $23.47. I would allocate $7,500 to Xero.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Tom Richardson owns shares of Catapult Group International Ltd, Dicker Data Limited, Ramsay Health Care Limited, ResMed Inc., TPG Telecom Limited, Westfield, and Xero.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia owns shares of Dicker Data Limited, Nanosonics Limited, TPG Telecom Limited, and Xero. 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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