If you have $10,000 burning a hole in your pocket then now could be the time to put it to work with ASX shares.
I think the election is creating an interesting set of circumstances which makes some ASX shares an opportunity:
WAM Global Limited (ASX: WGB) – $3,000
The worry about franking credits has caused some people to exit the listed investment company (LIC) scene, but I think that just provides a good opportunity – particularly for investors not reliant on franking credit refunds.
Investing in WAM Global would provide diversification away from the wobbly Australian economy. Geoff Wilson has recently been heavily buying WAM Global shares and, despite a quick rise over two days, the share price is still trading at a discount of more than 12% to the April 2018 net tangible assets (NTA).
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $3,000
Investment house Soul Patts has also seen its share price punished in recent months since March 2019 with some of its large holdings like Brickworks Limited (ASX: BKW) and New Hope Corporation Limited (ASX: NHC) fall in value.
The diversified and conservative nature of Soul Patts’ operations gives me confidence in its long-term future and I’d happily add to my holdings at today’s prices. I also love the steadily growing dividend.
NAOS Small Cap Opportunities Company Ltd (ASX: NSC) – $2,000
This is another LIC that is suffering from the potential cut to franking credits. NAOS focus on the smallest ASX shares on the market, that area of the share market is going through a tough time at the moment but could turn around later this year.
However, the share buy-back, the almost 20% discount to NTA and the trailing grossed-up dividend yield of 13% could be too good to ignore for opportunistic investors like me who are happy to hold for the long-term.
Vitalharvest Freehold Trust (ASX: VTH) – $2,000
Being able to pick assets that offer more defensive characteristics and high income compared to a typical ASX share is very useful, particularly in this era of low interest rates.
Vitalharvest is a farmland landlord and generates a good level of base rent from its tenant, Costa Group Holdings Ltd (ASX: CGC) which it also shares in some of the earnings of the farms that Costa leases. The REIT is looking to invest in other farms away from Costa and the current farms types of berries and citrus fruit.
Being able to buy Vitalharvest at around its NTA seems much more attractive than the high premium that its peer Rural Funds Group (ASX: RFF) is trading at. It is a targeting 8% distribution yield.
If I had some more money to invest then I would consider one of these cheap and top ASX shares.
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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO, NAO SMLCAP FPO, RURALFUNDS STAPLED, WAMGLOBAL FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks. 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.