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3 shares I’d like to buy this year

I’m always looking to expand my portfolio and diversify by adding shares that I don’t already own.

I think the following shares will make very good additions to my portfolio:

Blue Sky Alternatives Access Fund Ltd (ASX: BAF)

This is a very unique listed investment company (LIC). It’s run by Blue Sky Alternative Investments Ltd (ASX: BLA) and invests in the same alternative assets as the unlisted fund.

Those alternative assets are all quite exciting in my opinion, some of the assets include a water fund, student accommodation, retirement living, strategic Australian agriculture and venture capital.

The LIC pays out a fully franked dividend every six months. It currently has a trailing grossed-up dividend yield of 5.9%.

REA Group Limited (ASX: REA)

REA Group is the owner of the largest Australian real estate property site, realestate.com.au. It also owns some other sites including flatmates.com.au, realcommercial.com.au and spacely.com.au.

I’m not very confident about the short to medium-term future of the Australian residential property market, but REA Group could continue doing well. I believe it will be able to command higher advertising fees from property vendors who want to sell their property as quickly as possible.

I regret not buying REA Group when it was near $50, but I live in hope that I’ll be able to buy into the company at a price I find attractive and benefit from Australia’s property obsession.

REA Group is currently trading at 36x FY18’s estimated earnings with a grossed-up dividend yield of 1.72%

Costa Group Holdings Ltd (ASX: CGC)

Costa is an exciting company to me due to number of locations that it has farms and the growth of each of its food types.

The business has five main segments that it reports on, they are mushrooms, berries, citrus, tomatoes and avocadoes.

I believe that demand for healthy food is going to increase as the population increases and diets generally become healthier.

Costa is currently trading at 37x FY17’s earnings with a grossed-up dividend yield of 2.39%

Foolish takeaway

REA Group and Costa will have to trade at better value before I can contemplate buying shares, however Blue Sky could be trading at the right price for a small purchase for my portfolio.

I’m also looking at adding some of these top growth shares to my portfolio during 2018 as well.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended COSTA GRP FPO and REA 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 Bruce Jackson.

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