With the cash rate at a record low and tipped to be taken even lower by the Reserve Bank in the coming months, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
Three shares that I would invest these funds into are listed below:
Collins Foods Ltd (ASX: CKF)
I think Collins Foods would be a great option for investors in search of growth and income. It is a quick service restaurant operator with a growing network of KFC restaurants across Australia, Europe, and New Zealand. I believe the company has a significant opportunity in an underpenetrated European market and expect its expansion to underpin strong earnings growth over the next decade. This should be supported by the rollout of the Taco Bell brand across a number of states following a successful trial in Queensland. An added bonus is that at present Collins Foods shares offer a trailing fully franked 2.7% dividend.
Dicker Data Ltd (ASX: DDR)
Investors that are in search of dividends might want to consider Dicker Data. It is a founder-led wholesale distributor of computer hardware and software throughout Australia and New Zealand. In FY 2018 the company smashed the market's expectations and its own guidance with another year of strong profit growth. Pleasingly, management expects more of the same in FY 2019 and recently revealed guidance for 10% sales and profit growth. It also advised that it expects to pay a 22 cents per share dividend in quarterly instalments. This works out to be a forward fully franked 5.5% yield.
Xero Limited (ASX: XRO)
Growth investors might want to consider this cloud-based business and accounting software provider. It has been a strong performer in FY 2019, growing revenue by 37% in the first half to NZ$256.5 million and its annualised monthly recurring revenue by 40% to NZ$589.1 million. I believe Xero is well-positioned to continue this impressive growth in the second half and beyond thanks to the quality of its product, the shift to cloud-based accounting, and its international expansion.
