With the market on the upward swing again this week, but still a ways from the highs reached in July, it might be a good time to deploy some additional capital into the markets (if you’re so inclined).
So here’s how I would deploy a $10,000 lump sum into ASX shares this week.
South32 Ltd (ASX: S32) – $4,000
South32 made a new 52-week low last week after reporting a disappointing set of earnings. I think it’s good chance to pick up some shares on the cheap – after all, commodity prices always swing in cycles and this can be taken advantage of. The company has a broad portfolio of resource exposure, including aluminium, manganese, silver and lead, which I think adds to its value.
Washington H. Soul Pattinson & Co. Ltd. (ASX: SOL) – $4,000
‘Soul Patts’ is (in my opinion) the best dividend share on the ASX, managing an increasing payout every year since 2000. SOL shares are looking cheap at the moment as well, with the stock close to its 52-week low of $19.70. Another bonus is the exposure to a diversified portfolio of quality ASX companies that Soul Patts owns stakes in. These include TPG Telecom Ltd (ASX: TPM) and Brickworks Ltd (ASX: BKW). With a diverse earnings base and this enviable history of dividends, Soul Patts is a rare bargain in the market right now (in my view anyway).
CSL Ltd (ASX: CSL) – $2,000
CSL is hands down the best healthcare stock on the ASX and a case can be made that it’s the best ASX stock, period. The company specialises in vaccine and blood plasma research and is a global leader in these fields. I’ve only doled out $2,000 for CSL as its shares are at all-time highs, but this is for the reason that the company just announced a profit of US$1.9 billion for the 2019 financial year. Any dips in this stock’s share price are buying opportunities in my eyes and its one that’s perpetually on my watch list.
So here you have it, how I would invest a $10,000 lump sum in ASX shares this week. In my opinion SOL shares are the best value for money right now, but CSL is an evergreen grower you can’t go wrong with.
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended 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.