So many companies and such little capital. That’s the problem facing most investors, unless your name’s Warren Buffett, of course.
It can often be hard to decide what to invest in, but I always bring it back to focusing on my own goal: To invest to develop a growing stream of dividends.
With this in mind, here’s 3 businesses which look attractive at current prices.
Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC)
Ramsay shares have fallen 20% from their highs earlier in the year. The market is clearly concerned with the (slight) lowering of guidance and the subdued outlook for the next year or two. But even though the growth rate has slowed, the long term outlook for Ramsay is still bright.
It’s set to benefit from an ageing population globally, and a huge increase in demand for hospital beds and operating theatres.
Shares currently trade on a gross dividend yield of 3.7%.
Spark Infrastructure Group (ASX: SKI)
Spark owns regulated utility assets, focusing on electricity networks. The company has interests in multiple networks across three states, including Victoria Power Networks, SA Power Network, and TransGrid.
Looking to the future, through its TransGrid business, Spark is investing in renewable projects, with 8 complete and 4 currently under construction.
The company has a strong and reliable cashflow which is inflation protected, and this gives Spark the ability to be a good dividend payer. In fact, the distribution has grown every year since 2011 and is forecast to increase another 4.9% this year.
Shares currently trade on a distribution yield of 7%.
Hotel Property Investments Ltd (ASX: HPI)
This real estate investment trust (REIT) owns a portfolio of 44 pubs and hotel venues across Queensland and South Australia, worth around $700m. These are leased predominantly to Coles and the portfolio has a 100% occupancy rate.
Gearing is 39.4% and the weighted average rental increase across the portfolio is 3.6%. This helps underpin modest growth in distributions going forward. Hotel Property Investments also looks to add value to any underutilised land on the properties it holds, while also looking to acquire new pub assets which meet its investment criteria.
The main risk here is the concentration of assets in the hotel sector and that Coles may decide not to renew its leases as they expire. Shares currently trade on a yield of 6.3%.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Dave Gow owns shares of Ramsay Health Care Limited. The Motley Fool Australia has recommended Ramsay Health 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.
- 2 ETFs I’d buy and hold for the next 10 years – January 8, 2019 1:27pm
- 3 quality ASX shares giving shareholders regular pay rises – January 7, 2019 2:39pm
- 2 high yield ASX shares to boost your income in 2019 – January 3, 2019 9:58am