Later today the cash rate is expected to remain on hold again when the Reserve Bank gathers for its June meeting.
Which means that low interest rates being experienced on savings accounts aren’t going anywhere any time soon.
In light of this, if I had $10,000 sitting in a savings account I would consider putting it to work in the share market.
After all, including dividends, the All Ordinaries (Index: ^AXAO) (ASX: XAO) has provided a return of approximately 10% since this time last year. This is around 5x greater than what many savings accounts offer today.
With that in mind, here are three shares which I would consider buying with that $10,000:
CSL Limited (ASX: CSL)
While the CSL Limited share price may have been on a tear over the last 12 months, I don’t believe it is too late to invest in one of Australia’s highest quality businesses. Due to its core plasma business, the growing Seqirus influenza business, and its growing pipeline of new drugs, I expect the company to continue growing its earnings at an above-average rate for the foreseeable future.
National Storage REIT (ASX: NSR)
Investors that are interested in generating income from their investments might want to consider this storage giant. Thanks partly to catalysts such as population growth and downsizing by baby boomers, demand for storage facilities has been growing at a steady pace. National Storage aims to meet this demand with 11 new developments and several redevelopments of existing sites. I believe this puts it in a great position to continue growing its distribution, which is expected to be ~9.8 cents per share this year. This is a distribution yield of 6.2% currently.
Xero Limited (ASX: XRO)
I think that this cloud-based accounting software provider could be a great buy and hold investment option. If Xero can replicate the success it has had in Australia and the UK in the lucrative U.S. market, then its revenues could grow at a solid rate for at least the next decade. It is, however, not going to be easy and there’s certainly a long road ahead. But I remain confident that the quality of the product gives it an edge.
Lastly, if you have a little bit more to invest then don't miss out on this new tech boom before it explodes.
One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.
Everyone is talking about the artificial intelligence revolution.
Harvard Business Review calls it, “the most important general-purpose technology of our era.”
One Google Insider predicts AI, “will be as transformative as the discovery of electricity.” And it already is transforming industry after industry.
After all we have been hearing about AI for years…but it never really lived up to the hype…so what’s finally unlocked this huge tidal wave of innovation?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended National Storage REIT. 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.