I like the idea of owning ASX shares that would let you be stress-free and sleep easy.
It’s impossible to guarantee stress-free share price movements. Share markets are volatile, a business has no control over what shareholders buy & sell shares at.
But, if you can find businesses that should be able to weather any storm, grow over the long-term and offer a decent level of income along the way then you may do very well with your stress-free goal.
These three ASX shares could fit the bill:
MFF Capital Investments Ltd (ASX: MFF)
This is a listed investment company (LIC) that is run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay, who has over $170 million of his family’s wealth invested alongside regular MFF Capital investors.
MFF Capital has been one of the best-performing LICs over the past five years due to its global investment choices. The international share market offers many more opportunities than the ASX, so it could continue to be a fertile hunting ground.
It’s currently trading at around its pre-tax underlying assets, with a growing grossed-up dividend yield of 1.6%. I think it’s a fair price to buy at today.
I have a lot of confidence in Mr Mackay to manage MFF Capital’s portfolio to continued market-beating performance.
Challenger Ltd (ASX: CGF)
A business that looks to provide a stable and guaranteed source of income for retirees could also be a good one to consider for our own stress-free portfolio.
The annuity sector is a growing industry with the number of people in retirement age expected to grow by 40% over the next decade and 70% over the next two decades. More customers should mean higher profits over the long-term.
The falling Australian housing market, the volatile share market and prospective Labor tax changes could make annuities and fixed income even more attractive.
If the US Fed doesn’t increase interest rates as much as expected then Challenger could have even brighter shorter-term prospects.
It’s currently trading at 13x FY19’s estimated earnings with a grossed-up dividend yield of 5.5%.
Rural Funds Group (ASX: RFF)
There may be few investments out there less stressful than owning farmland, particularly when that farmland is not located in the areas that are suffering from serious drought conditions, which perfectly describes Rural Funds’ assets.
In my opinion, Rural Funds is the best real estate investment trust (REIT) on the ASX and offers reliable long-term growth with the annual rental indexation built into its contracts that are linked to either CPI inflation or a fixed 2.5% increase.
That’s why Rural Funds management has confidently predicted growth of the distribution by at least 4% per annum.
It is trading with a distribution yield of 4.7% for FY19.
I believe these three shares could provide a relatively stress-free way of investing – that’s how I try to invest, which is why I own all three shares in my portfolio.
Another stock that could be worth considering for stress-free investing is this leading ASX dividend share.
Our top dividend stock pick for 2019 currently boasts a 5.4% dividend yield (fully franked). I believe it’s a perfect fit for a well-diversified, income-focused portfolio.
Even better, this yield comes attached to an attractive and still-growing business which could keep expanding throughout Australia and New Zealand for years to come. With disciplined management, and a long track record of building wealth for shareholders, this company is a serious candidate for any income-minded investor’s portfolio.
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor Tristan Harrison owns shares of Challenger Limited, Magellan Flagship Fund Ltd, and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Challenger Limited and RURALFUNDS STAPLED. 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.