The great thing about the share market is that prices of businesses are always changing and therefore we are being presented with different opportunities each week or even each day.
I think it’s a good idea to narrow down which shares you might buy with a watchlist. That way, you can decide between your favourites about want to invest in.
If I had $10,000 to invest today, this is how I’d do it:
UBS IQ MSCI Asia APEX 50 Ethical ETF (ASX: UBP) – $2,000
This is an exchange-traded fund (ETF) that looks to give investors exposure to the largest 50 businesses in Asia outside of Japan.
What that means in reality is a mostly Chinese-focused list of businesses that are excellent ideas to hold in my opinion. Its top holdings are growth businesses like Tencent and Alibaba, both make up more than 10% of the holdings and are growing strongly thanks to China’s growing middle class as well as the rising usage of the internet to purchase goods.
The current trade war issues could make now a good time to buy the ETF for the long-term. However domestic Chinese risks are possible, which is why it’s the smallest allocation in my portfolio.
Rural Funds Group (ASX: RFF) – $2,500
This agricultural real estate investment trust’s (REIT) price has fallen to the current $1.96. Farmland is an integral part of our society and as populations grow it should be able to command a higher rental price from its farms and water entitlements.
Rural Funds has a variety of farms including cattle, cotton, vineyards, macadamias, almonds and poultry. This diversification helps mitigate climate and food-specific risks.
I believe the value of Rural Fund’s farms will grow nicely over the long-term and the distribution is predicted to grow by 4% per annum in the coming years.
Paragon Care Ltd (ASX: PGC) – $3,000
Paragon is a healthcare product supplier of items like beds and devices to customers such as hospitals and aged care facilities.
I’m sure most readers have heard of the ageing demographic tailwinds that should assist most healthcare businesses in the coming decades. More elderly patients should mean more demand for Paragon’s products.
Paragon has also made a number of interesting bolt-on acquisitions over the past year which should significantly boost earnings in FY19 and beyond.
It’s trading at around 11x FY19’s estimated earnings.
Bapcor Ltd (ASX: BAP) – $2,500
Bapcor is Australia and New Zealand’s largest auto parts business. The falling number of new car sales in Australia could provide a boost to Bapcor down the track as more car owners try to make their car last longer and demand for parts increases.
Bapcor is increasing the number of stores, generating impressive same store sales growth, growing its profit margins and expanding overseas. It has a lot of pleasing aspects.
Although electric vehicles may make the road a bit rough in the long run, the next few years look good for Bapcor. Particularly with its attractive valuation.
I hope all four of these shares beat the ASX and global indices, as I own shares of them all of except the Asian UBS ETF. I’ve allocated the most money to Paragon in this article because I think it could generate the biggest returns in the next 12 months due to its low price/earnings ratio.
If I had another $10,000 to invest I’d definitely want to buy more of one of these top ASX shares which is exposed to a strong tailwind, I already own some shares in my portfolio.
Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.
The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.
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Motley Fool contributor Tristan Harrison owns shares of Bapcor, Paragon Care Limited, and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Bapcor and RURALFUNDS STAPLED. The Motley Fool Australia has recommended Paragon Care 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.