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5 leading ASX shares to start a share portfolio

Perhaps you are starting an ASX share portfolio for the first time? If so, congratulations for taking the plunge! I hope you find, like me, that share investing will be not only enjoyable but a great way to boost your income.

Or, maybe you’re in the swing of it already but are looking for some good share picks to add to your portfolio?

Either way, here are my top 5 share picks for you to consider.

Macquarie Group Ltd (ASX: MQG)

Macquarie is a global financial services business with a core focus on international investment banking. It has been a true Australian success story, with a strong track record of profitability over the last few decades.

A growing number of overseas operations are a key part of its diversification strategy.

Macquarie now generates around two-thirds of its income from its international operations, providing more geographic diversification than Australia’s big four local banks.

Wesfarmers Ltd (ASX: WES)

A core strength of Wesfarmers is that it is a highly diversified business, providing a buffer to any industry-specific challenges.

It has operations in general retail segments including home improvement, general merchandise and office supplies, as well as industrial segments with operations in chemicals and energy. Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia and Officeworks.

Wesfarmers pays out an appealing dividend yield of around 3.7% that is fully franked.

BHP Group Ltd (ASX: BHP)

BHP is definitely my pick of the ASX resource sector shares. It is a diversified natural resources company and is one of the world’s top producers of commodities like iron ore, coal and copper.

With tensions in the US–China trade war now beginning to settle and improving commodity prices, BHP looks set to continue to generate high levels of free cash flows during FY20 and into FY21, which should help to further boost its current good dividend yield even further.

CSL Limited (ASX: CSL)

CSL is global market leader in blood plasma research and disease treatment. Over the past few decades, CSL has evolved to become the second-largest company on the ASX, reaching more than 60 countries.

It has invested more than US$3 billion in research and development over the last 5 years, and over the last 3 years, its earnings growth has averaged 16.5% annually.

I feel that CSL is well positioned to continue to deliver strong earnings growth over the next 5 years driven a rising demand global demand for immunoglobulin products.

Carsales.Com Ltd (ASX: CAR)

This local online car classifieds provider has an impressively entrenched and dominant position in Australia, protecting it against any market competition while it very aggressively grows its presence overseas.

The Carsales total shareholder return over the 10 years to October 2019 increased by an incredible 364%, compared to only 122% for the S&P/ASX 200 (INDEXASX: XJO).

With continued growth in local premium products, and a proven track record in entering new markets, I feel that Carsales is well placed for strong growth over the next 5 years.

If you want to look for a few more suggestions to get you started, consider these 3 top blue chip shares.

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Phil Harpur owns shares of carsales.com Limited and CSL Ltd. 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 Macquarie Group Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended carsales.com 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.

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