2 shares that every investor should own

There are few shares that could be suited to every investor’s portfolio. Some shares would only interest income seekers like Commonwealth Bank of Australia (ASX: CBA). Others are purely growth shares and don’t pay a dividend such as Xero Limited (ASX: XRO) and a2 Milk Company Ltd (ASX: A2M).

I think there are a few businesses that are becoming so fundamental to our way of life that they are worth owning (at the right entry price) in every portfolio. As a key bonus, my below two ideas both are paying a quickly-rising dividend.

Here are two ideas:

REA Group Limited (ASX: REA)

REA Group is the owner of Australia’s leading property website, It also owns several other leading Australian property-related sites such as real and

I think REA Group is the most obvious way, and perhaps best way, to get exposure to the property market without actually owning property as it takes a slice of every property advertised on its portal. Vendors would be silly not to advertise in the current house price environment. is the clear market leader, which attracts the most buyers, which subsequently attracts the most sellers and so on. It’s a powerful cycle for REA Group, allowing it to increase prices at a strong rate with little detrimental effect.

REA Group continues to expand its offering in the property space, such as its recent launch into the mortgage broking sector.

Over the longer-term REA Group could continue to grow at an impressive double-digit rate due to its overseas investments in property sites that are located in South East Asia, India and the US.

It’s currently trading at 33x FY19’s estimated with a grossed-up dividend yield of 1.8%.

Altium Limited (ASX: ALU)

Altium is arguably the world’s leading electronic PCB software business. It has the software that helps engineers from one-man entities up to large scale organisations design the products of tomorrow.

It has an impressive list of clients including Boeing, Tesla, Space X, John Deere, Amazon, Apple, Microsoft, Google, Bosch and NASA.

Management has achieved all of the objectives previously set and by 2025 it wants to achieve 100,000 Altium Designer subscribers. This would allow the company to say to clients and potential clients that it should a single leading choice – like how Microsoft Office has dominated.

If Altium keeps growing revenue by more than 20% every year then there’s a good chance that it will become the global leader it wants to be, with increasingly higher profit margins.

It’s currently trading at 54x FY19’s estimated earnings with an unfranked dividend yield of 1%.

Foolish takeaway

Both of these companies are really good businesses, but they are priced very highly. Over the long run there’s a very good chance both of them will grow into the valuations, however I personally wouldn’t want to buy shares unless they were both 20% more attractively valued.

Until they are better value, I’d much rather buy more shares of this exciting ASX growth stock that’s expanding into Asia.

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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of A2 Milk, Altium, and Xero. The Motley Fool Australia has recommended 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 Scott Phillips.

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