With another week on the ASX come and gone, it might be a good time to reflect and regather your investing thoughts and look to what the future might hold. After all, missing out on a winner is still a lot better than keeping a loser – and looking to where the world is going is a great way of spotting the potential losers.
So here’s how I would build a $100,000 ASX portfolio for 2020 and beyond!
Ramsay Health Care Limited (ASX: RHC) – $30,000
If any business is going to be around for the foreseeable future, it’s healthcare. Ramsay Health Care is the largest private hospital operator in the country and has an impressive international expansion in place as well, with a growing presence in Europe in particular. Ramsay is also one of the most reliable dividend payers on the ASX, having raised its payouts every year since 2000 (yep, even through the GFC).
Macquarie Group Ltd (ASX: MQG) – $40,000
Macquarie is the largest ASX financial group outside the big four banks and I think it’s presenting a lot better value than the other banks at current prices. MQG shares finished Friday at $129.39 – a fair way off its 52-week high of $136.84. This still only represents a price-to-earnings ratio of 13.75 – meaning this company is looking cheap in my eyes. At this level, you can also bag a starting dividend yield of 4.44% – not too bad at all if you ask me.
Coles Group Ltd (ASX: COL) – $30,000
I’m fairly sure that we’re all still going to need food and other household essentials over the next decade, and I’m also sure Coles will still be one of the cheapest providers of said items. Coles shares have returned over 20% to its new shareholders since being spun-off from its old parent Wesfarmers Ltd (ASX: WES) last November, so clearly the market has some confidence in its leadership and strategy. I estimate Coles shares are also offering a forward yield of around 3.5%, so another great stock for income here with Coles.
With these three stocks, I think you have three great companies set for success over the coming decade. I think Macquarie’s share price offers the best value at the current level. But (in my opinion) all three are definitely worth a closer look for your portfolio!
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care 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.