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3 top mid cap shares I would buy today

As I’m a big fan of mid cap shares, I feel spoilt for choice at the moment on the Australian share market.

In my opinion, recent market volatility means there are a large number of shares trading on attractive valuations right now in the space.

Three mid caps that I think are worth considering are listed below. Here’s why I like them:

Bellamy’s Australia Ltd (ASX: BAL)

Delays to its CNCA accreditation and sales disruption caused by the launch of a new formulation have weighed heavily on the Bellamy’s share price in recent months. While the company is likely to post a reasonably underwhelming result in FY 2019 because of these issues, I believe it is worth sticking with the company through this short term pain as there could be significant long-term gain ahead. Management continues to target sales of $500 million by the end of FY 2021, which will be an increase of 52% on last year’s result.

Dicker Data Ltd (ASX: DDR)

Investors looking for mid cap dividend options might want to consider this computer software and hardware wholesale distributor. Due to its robust business model, growing number of vendor agreements, and industry leading position, I believe Dicker Data is well-positioned to grow its earnings and dividend at a solid rate over the coming years. This year the company’s board intends to increase its dividend to a fully franked 18 cents per share, which equates to a generous forward yield of 6.3%. Another bonus is that it pays its dividend in quarterly instalments.

Macquarie Telecom Group Ltd (ASX: MAQ)

Although this company has the word “telecom” in its name, it is nothing like Telstra Corporation Ltd (ASX: TLS). Macquarie Telecom may provide telco services to corporate and government customers, but the main driver of its future growth is expected to be its Hosting business. This business has been growing at an explosive rate over the last few years and could continue doing so for the foreseeable future after recent capacity expansions were made in order to capture the increasing demand for data centre services.

Looking for more mid cap growth ideas? Then don't miss out on these top shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra 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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