There are well over 2,000 different stocks listed on the ASX, which presents the potential investor with a little too much choice. It is always good to diversify as you don’t want all your eggs in one basket, which means you don’t want to own just the Australian banks.
If I had $10,000 to invest in the market this week, these are the stocks I would buy.
Auckland International Airport Limited (ASX: AIA)
The gateway to New Zealand and the South Pacific, and a monopoly, Auckland Airport continues to grow traffic, with passengers increasing over 6% in the last year. The airport is making substantial investments in both retail, accommodation, and industrial space in the airport precinct it owns.
With New Zealand becomingly increasingly popular as a destination, particularly amongst the growing Chinese market, I believe the airport and its share price will only continue to grow. The company is also committed to increasing its dividend and currently yields 3.4%.
Woodside Petroleum Limited (ASX: WPL)
The Perth based global LNG explorer and producer has seen its shares dip recently as it announced a 1 for 9 rights issue to fund its purchase of the Scarborough LNG reserves from ExxonMobil.
LNG demand has doubled since 2005, and Royal Dutch Shell predicts it will double again in the next 15 years. The demand for gas from Asia, particularly China, but also from India and Pakistan, is exceeding all forecasts, as countries search for a cleaner fuel than coal. The planned supply may not meet this increased demand and could lead to shortages, and associated price increases.
With a dividend yield of 4.4%, Woodside should also reward patient investors with a decent income from owning their shares.
InvoCare Limited (ASX: IVC)
Nothing is certain in life except taxes and death. You cannot invest in the ATO, but you can in the funeral business. It certainly is not a sexy industry and is as far from a tech stock that you can get, but it is highly profitable and Invocare is the market leader in Australia and New Zealand. The shares also pay a healthy annual dividend of 3.3%.
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Motley Fool contributor Simon Proudman owns shares of Auckland International Airport Limited, Invocare and Woodside Petroleum Ltd. 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.