There aren't many ASX200 shares that I think would be good for every portfolio. Some shares don't have good enough long-term growth prospects, some shares don't pay a dividend and so on.
If you're looking for an ASX200 share for your portfolio, one of these businesses could be a good choice:
Challenger Ltd (ASX: CGF)
Challenger is Australia's leading annuity business. It has a grossed-up dividend yield of 5.5%, so it certainly passes the income test.
The company's main source of earnings is from retirees wanting a guaranteed source of income from their capital. The number of retirees, people aged over 65, is projected to grow by 40% over the next decade and by 70% over the next two decades.
The growing superannuation pool of money should also lead to bigger annuities. Combining the two factors, Challenger appears to have attractive tailwinds.
REA Group Limited (ASX: REA)
REA Group owns realestate.com.au, the leading property site in Australia. REA Group has a grossed-up dividend yield of 2.1%. It's not a great yield, but above 2% isn't utterly terrible.
Owning the number one site means it attracts the most potential buyers, which then attracts the most sellers and so on. It's a positive loop that allows REA Group to steadily increase prices to little detrimental effect due to its brand power and market position.
REA Group could keep beating the market over the long-term if its international investments turn into highly profitable businesses themselves. Asia and the US have much larger populations than Australia, which is helpful for REA Group.
Costa Group Holdings Ltd (ASX: CGC)
Costa is Australia's largest horticultural business. It has a trailing grossed-up dividend yield of 4%.
If you've been looking to buy Costa shares for a while then now could be your chance. Its share price has plunged after management advised profit may be flat for 2019. But, the company has a number of growth initiatives which should increase profit over time and food prices could return to normal as early as this year.
I am still a long-term believer in Costa and the next few months could be the most attractive time to buy some shares.
Foolish takeaway
All three shares have seen share price falls in recent times, making their value seem more attractive. At the current prices I would go for Challenger, then Costa. The market may react negatively again to the audited Costa report next month.
REA Group is trading more attractively than a few months ago, but it's trading on the most expensive valuation.
