I think that different ASX shares are worth buying for different age groups. Different horses for different courses.
Last week I looked at three ASX shares that could be suitable for investors in their 40s.
Now I’m going to suggest three ASX to buy for investors in their 50s. My ASX share choices are ones that have long-term steady growth potential, have a history of reliability and have decent starting dividend yields:
DuluxGroup Limited (ASX: DLX)
DuluxGroup is the owner of many home improvement brands including Dulux, British Paints, Cabot’s, Selleys and Yates.
The demand for most of DuluxGroup’s products is fairly consistent. People will continue to paint their houses in all economic conditions. In-fact, painting a room could be a cheap way to renovate as an alternative to buying or renovating a kitchen.
Every year DuluxGroup unveils a bit of revenue growth and a slight increase in profit margins, increasing the bottom line profit amount by a pleasing number.
It’s currently trading with a grossed-up dividend yield of 5.7%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is probably my favourite business on the ASX. Its low grossed-up dividend yield of 2.9% isn’t very attractive for income-seekers, but the fact its annual ordinary dividend has grown every year since 2000 could make it an attractive choice to accumulate for retirement.
The reason why I like it so much is because it’s like the ASX’s version of Berkshire Hathaway – it takes large stakes in listed businesses and also operates unlisted businesses. This diversified approach is attractive to me because it can shift its underlying holdings as the years go by, hopefully making it future-proof.
If its total returns continue to outperform the market then it could be a good alternative way to invest in ‘Australia’ compared to listed investment companies (LICs) and exchange-traded funds (ETFs) which do a similar thing.
InvoCare Limited (ASX: IVC)
InvoCare is the country’s largest funeral operator and is exposed to strong tailwinds. Death volumes are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050.
By the time a 50 year old retires, InvoCare could be hitting its fastest time for growth. At some point the normal growth of the death rate will resume and all of InvoCare’s renovation expenditure will be fully utilised.
It’s currently trading with a trailing grossed-up dividend yield of 4%.
I believe that each of these shares can generate good long-term growth, have satisfactory starting dividend yields and could be providing much bigger income in a decade from now.
Investors in their 50s could also do well by looking at these quality ASX dividend shares.
NEW! The Motley Fool’s team of crack analysts has just released a timely report revealing the names and codes of their top 3 dividend share recommendations for 2019. Be among the first investors to get access—FREE, for a strictly limited time. You’ll discover the names of 3 hefty dividend paying companies with what our analysts consider to be solid growth prospects for the year ahead…
The first two currently offer fat, fully franked yields and the third is a surprising REIT offering you the chance to become a landlord with none of the hassle! If you’re looking for hot new ideas, look no further. But you do need to hurry. Snap up your free copy now, before supplies run out!
Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended InvoCare 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.