Where I would spend $10,000 today on ASX shares

Here's where I would spend $10,000 today on high-quality ASX shares.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ASX continues to show softness this week. The S&P/ASX 200 (INDEXASX: XJO) is down 0.17% or 10 points at the time of writing to 7,010.

We still seem to be a ways away from the all-time high of 7,132.7 we saw in mid-January – and that leads me to think, in turn, that today might be a good time to deploy some additional funds into the markets today.

Here are three ASX shares that I consider worthy of an investment in today's market.

Coles Group Ltd (ASX: COL)

I think the consumer staples/grocery sector is a prudent one to be invested in, in this stage of the economic cycle and Coles shares are a fantastic candidate. Although the fundamentals of Coles' arch-rival Woolworths Group Ltd (ASX: WOW) are slightly stronger, I've chosen Coles for its far more attractive share price today. Woolies' shares are currently trading on nearly 38 times earnings, whilst Coles' are at a far more reasonable (in my opinion) 21.

Coles' plans to cut costs through supply-chain efficiencies and automation are impressive and set the company up well to expand its earnings and dividends in the 2020s in my view.

SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)

In a similar vein, I think the recent pull-back in the ASX translates into a great time to pick up shares of this well-diversified income exchange traded fund (ETF). This fund holds a basket of top-yielding ASX shares that are also screened for 'dividend trap' characteristics. Some of its largest holdings currently include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES).

With an average earnings multiple of 15.46 and trailing yield of 5.72%, I think this ETF is another top buy in today's market.

Australia and New Zealand Banking Group (ASX: ANZ)

In my opinion, ANZ is the best value for money for a 'big four' ASX bank stock today. ANZ shares are currently going for $25.97 (at the time of writing), which gives any new investors a trailing dividend yield of 6.16%, which also comes 70% franked.

Although there are a raft of issues facing the banking sector right now (low interest rates being one), I think grabbing ANZ shares for the same price they were available for in March 2010 today is a pretty good value deal. A 6.16% yield is probably more than triple what an ANZ term deposit will pay you these days as well, so I think you could do a lot worse than this banking giant.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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.

More on Share Market News

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave the thumbs up to these ASX shares last week. Why are they bullish?

Read more »

Jessica Amir
Investing Strategies

6 ASX shares to buy and hold until the next leap year

These are the stocks to store in the portfolio until the next February 29 rolls around in 2028, according to…

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Share Market News

If I invest $10,000 in Qantas shares, how much passive income will I receive in 2024?

Here's what analysts are predicting from the airline operator.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Value Investing

Looking for ASX value shares? Here's 1 I'd buy and 1 I'd avoid!

It's not an easy exercise to identify which stocks are undervalued and which ones are simply terrible. Here's an example…

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.

Will I be buying Zip shares now the company has turned a profit?

Is now the right time to buy this BNPL stock -- or not?

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape

1 ASX dividend stock down 55% to buy right now

Here's why I think this beaten-up stock could be an opportunity.

Read more »

Three analysts look at tech options on a wall screen
Share Market News

Here's how the ASX 200 market sectors stacked up this week

ASX tech shares are on fire, leading the 11 market sectors for a third consecutive week.

Read more »