The ASX20 represents the largest 20 companies on the ASX by market capitalisation. Although dominated by the big four banks, which together account for more than 30% of the index, it is nonetheless made up of a wide variety of companies.
Here are 5 ASX20 shares investors loved in 2019.
The healthcare giant
CSL Limited (ASX: CSL) could soon be the largest company on the ASX by market capitalisation. Shares in the biotechnology company increased 52% over 2019 from $185.38 at the start of the year to over $280 currently. It's not just the share price that has grown – CSL's dividends have increased from US$1.02 per share in 2013 to US$1.85 in 2019, a compound annual growth rate of 10.43%.
The consumer staple
Woolworths Group Ltd (ASX: WOW) is the largest supermarket group in Australia with more than 3000 stores across its supermarkets, liquor, and Big W divisions. Shares in Woolworths have risen 27% over 2019 to $37.38 from $29.33 in January. The retailer reported strong 1QFY20 results, with the Australian food division reporting 7.8% growth in sales. The liquor division reported growth in sales of 4.9% for the quarter while online sales were up by 37.4%. Overall group sales were up 7.1% to $15.9 billion.
The resources duo
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have been lifted by strong iron ore prices in 2019, which allowed for bumper dividends by the mining giants. BHP is currently trading at $39.64, up 21.44% from a low of $32.64 in January. Rio is trading at $102.72, up 34% from its own January low of $76.65.
BHP paid dividends of over $3.35 per share in 2018-19, more than double the previous financial year, and has a dividend yield of 4.84%. Rio boosted dividends by $437 million last reporting season and is currently yielding 4.57%. Both the miners have increased dividends every year since 2010 with the exception of 2016.
The telecommunications provider
Telstra Corporation Ltd (ASX: TLS) shares have gained ground this year, increasing 32% to $3.66 from $2.77 in January. The telecommunications provider is currently yielding 2.73% and has a price-to-earnings ratio of 20.22. Investors have re-embraced Telstra in 2019, despite ongoing dividend cuts. Costs associated with the roll out of the NBN have slashed profits, however 2019 may mark a turning point for Telstra. The company is a year into its 'T22' cost cutting and restructuring program and investing heavily in the rollout of 5G technology which brings exciting possibilities.
