The Motley Fool

3 top mid cap shares on my shopping list

I think the mid cap side of the Australian share market has a good number of high-quality shares which could be great investments over the medium to long term.

Three that stand out at present are listed below. Here’s why I think they are worth a closer look:

Collins Foods Ltd (ASX: CKF)

This leading KFC franchisor has operations in Australia and in Europe. It is the latter market which I expect to provide Collins Foods with significant growth opportunities in the future, especially given the size of the market and the relatively small footprint that KFC has there. While it is early days, its European expansion has started well. If it delivers on expectations then it could lead to solid earnings and dividend growth in the future.

Dicker Data Ltd (ASX: DDR)

Investors interested in mid cap dividend shares might want to consider this founder-led computer hardware and software wholesale distributor. Not only do its shares provide a generous above-average dividend yield, this dividend is paid out in quarterly instalments. So far in FY 2018 Dicker Data has outperformed expectations and this has been reflected in its share price performance. But despite its shares trading close to a 52-week high, they still provide a 6% fully franked forward yield. I would class it as a buy.

Megaport Ltd (ASX: MP1)

I think that Megaport is a great way for investors to gain exposure to the cloud computing boom. The company is a provider of elasticity connectivity and network services, which essentially means that it uses its software to streamline the internet connection between its customers’ data centres and major cloud service providers. This vital service is growing in popularity and I expect this to continue in the future as the shift to the cloud accelerates.

The Disruptors: 3 Revolutionary Mid-Caps to Back for FY 2019

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Collins Foods 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 Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.