Here are 2 ASX dividend shares I would buy with $5,000 today

Here’s where I would spend my first $5,000 on ASX dividend shares today

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If you’re wondering how much you need in order to start investing in the ASX, the minimum amount to make a conventional ASX trade is $500. However, when you factor in brokerage costs, this might not be the best amount to invest at one time.

Instead, I think a healthy amount to start with would be $2,500, which means that a brokerage cost of $20 (which is fairly typical) would come in at less than 1% of your total costs.

But what shares would be a good choice for this hard-earned $2,500? 

Well, here are 2 top ASX dividend shares you can buy with $5,000 ($2,500 each). I’ve chosen dividend-paying shares because I think shares are easier to appreciate when you can see the cash they’re throwing off with your own eyes.

Washington H. Soul Pattinson & Co Ltd (ASX: SOL)

‘Soul Patts’ is one of the most diversified companies you can buy on the ASX, which (in my opinion) makes it a great stock to own in almost any ASX portfolio. This company owns stakes in a wide variety of some of the best shares in Australia – including TPG Telecom Ltd (ASX: TPM), New Hope Corporation Ltd (ASX: NHC) and Brickworks Ltd (ASX: BKW)

Thus, I think this stock also provides a good alternative to index funds like Vanguard Australian Shares Index ETF (ASX: VAS), which are heavily weighted towards the big ASX banks and miners. It also pays a healthy dividend (currently at a 2.65% yield). It has also been increasing this dividend every year since 2000. In my view, all of this adds up to a great set-and-forget share to own.

WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC), which means it buys and sells shares on your behalf as an owner. Although this arrangement means that you will indirectly be charged a fee for this service, I think WAM Research makes up for this with a stellar history of outperformance and dividend income.

As a stock, WAX shares have returned an average of 16.5% per annum (before fees) since 2010 – outperforming its benchmark index by 6.7% p.a. Some of the company’s current holdings include CSR Ltd (ASX: CSR), Breville Group Ltd (ASX: BRG) and Myer Group Holdings Ltd (ASX: MYR).

Today, you can expect a fully franked dividend yield of 6.5% to come with your shares. Thus, I think WAM Research would be a great stock to buy as a first investment as you can reasonably expect nice growth alongside healthy dividend payments.

Foolish takeaway

There are a million different opinions out there on what your first investments should be, but I think these 2 ASX dividend shares would make great candidates. With both companies, you can outsource the hard decisions about when to buy or sell, which means all you have to do is sit back and watch things grow.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. 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.

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