We asked our Foolish writers to pick some of their favourite ASX shares to buy this February. Here is what they came up with…
Tom Richardson: Dicker Data (ASX: DDR)
Is a business I've covered a fair bit over the years thanks to its founder-led nature and track record of steady growth. It operates on thin margins as a wholesale hardware distributor to businesses throughout Australia and as such has a modest tailwind thanks to growing demand for IT hardware. Insiders own more than 50% of the business, which is excellent in terms of shareholder alignment, but means the stock is not liquid enough to attract many institutional investors.
However, this offers an opportunity for retail investors to pick up a company growing profits 15% this year, with a 6.4% dividend yield plus franking credits (on my estimates) on around 16x 2019's expected earnings at $3.03 per share.
Motley Fool employee Tom Richardson owns shares in Dicker Data.
James Mickleboro: Aristocrat Leisure Limited (ASX: ALL)
With its shares changing hands at 24x earnings, I think this gaming technology company could be a quality option for investors. At the current level, I believe its shares are great value given the enormous potential of its Digital segment which has exposure to the fast-growing mobile and social gaming markets.
At the end of FY 2018, the segment had 8.1 million daily active users each generating 40 U.S. cents in daily revenue. With new game releases and heavy user acquisition investment planned this year, I expect it to support further strong earnings growth in FY 2019.
Motley Fool contributor James Mickleboro has no financial interest in Aristocrat Leisure Limited.
Tristan Harrison: Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)
I don't often think that an index could be the best investment choice, but this Vanguard Asian ETF could be a good pick. It gives exposure to around 850 businesses listed in Asia outside of Japan. The ongoing trade war has sent the value of this ETF down by close to 10% over the past year.
However, with MSCI soon adding 234 China A shares to equity indexes, China still growing north of 6% per annum and the ETF trading with a p/e ratio of 11, I think this could be an opportunistic time to get exposure to Asia.
Motley Fool contributor Tristan Harrison owns shares of Vanguard FTSE Asia Ex Japan Shares Index ETF.
Lachlan Hall: Alumina Limited (ASX: AWC)
Alumina Limited is my top dividend pick for February, offering investors a 9.93%, fully-franked dividend and a strong relative value play within the ASX200.
A record-high alumina price is sustained by supply factors, with the world's largest alumina mine out of action for the foreseeable future. This should support the current payout ratio and maintain a strong cash flow profile.
The stock is currently trading at a P/E multiple of 10.2, which is well below the ASX200 average of approximately 16, so there's a strong case for capital growth on top of the juicy yield.
Motley Fool contributor Lachlan Hall has no financial interest in Alumina Limited.
Ivan Loh: Coles Group Ltd (ASX: COL)
After divesting from Wesfarmers Ltd (ASX: WES), Coles has concentrated its effort to overhaul its distribution network through the key supply chain modernisation strategy.
Coles has recently executed a definitive contract to develop two new automated ambient distribution centres as part of the aforementioned strategy. This will aid to cut cost and jobs, hence improve the overall business competitiveness in the near future.
The Coles Group share price has grown by 8.6%, year to date. I believe there is a lot more room for Coles to grow in 2019 and beyond.
Motley Fool contributor Ivan Loh owns shares of Coles Group Ltd.
Lloyd Prout: Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel Management (CTM) supplies corporate travel booking services in North America, Europe, Asia and Australia & New Zealand. The industry is highly fragmented, meaning that a smart acquirer like CTM has plenty of optionalities when it comes to inorganic growth.
CTM shares currently trade at 29x forward earnings, which puts the company on a PEG ratio of around 1. Considering that the company has pulled back from its September all-time high, this is a fair price to buy into such a well run business.
Motley Fool contributor Lloyd Prout owns shares of Corporate Travel Management Ltd
Regan Pearson: SKYCITY Entertainment Group Limited (ASX: SKC)
After recently lifting earnings guidance on the back of a strong first-half year period, casino and hotel operator SKYCITY Entertainment Group Limited looks to be offering good long-term value in my view at the current share price of $3.61.
The company is going through a period of significant investment to build a new international convention centre and hotel at its flag-ship Auckland site which I expect to attract more customers and drive earnings growth over the coming five years. This will likely result in a growing dividend which currently yields a juicy 5%.
Motley Fool contributor Regan Pearson owns shares in SKYCITY Entertainment Group Limited.
Tim Katavic: Dicker Data Ltd (ASX: DDR)
Dicker Data announced on Tuesday that total revenue for FY18 was up 14.4% over the prior period to $1,494 million and profit before tax rose 15.0% to $46.0 million. These figures exceeded guidance by about 8% on the top and bottom line after the company initially forecasted FY18 revenue of $1,389 million and profit before tax of $42.5 million in March.
The stock trades for around 17 times earnings with a 6% yield that is fully franked. With rising earnings, the dividend is likely to increase as the company pays out almost all of its earnings as dividends.
Motley Fool contributor Tim Katavic owns shares in Dicker Data.
Sebastian Bowen: Newcrest Mining Limited (ASX: NCM)
Newcrest mining is Australia's largest gold miner, which also boasts one of the lowest cost-per-ounce ratios in the industry.
Gold has already risen 2.5% in 2019 and I am bullish on the gold price over the next month. The US Federal Reserve is expected to adopt a more dovish monetary policy in the coming weeks, another US government shutdown is on the cards and Brexit tensions are unlikely to ease anytime soon. These factors should put a solid floor under the recent price rises and gold miners like Newcrest will be the biggest winners if this trend continues.
Motley Fool contributor Sebastian Bowen has no financial position in Newcrest Mining Ltd.
