The recent events surrounding the coronavirus has, in my opinion, created many great buying opportunities. Opportunities not only for small unknown growth companies, but also larger, well known companies within the S&P/ASX 200 Index (ASX: XJO).
I believe with a long term view, a little rational thinking and some courage to make a few investments you can look back on this event pleased you took action.
With that in mind, below are 3 ASX 200 shares I’d consider investing $5,000 into this week.
Tassal Group Limited (ASX: TGR)
Tassal is Australia’s largest salmon farmer and has recently also branched into farming prawns. This move gives Tassal some earning diversification and prawns also offer a higher $/kg yield. Its shares have been pushed lower in line with the broader market, however I believe demand for its products (essential food) will remain strong.
Additionally, in its half year report Tassal informed investors of a strategy for strong salmon harvest and sales for the second half and FY21. This plan is to hold salmon in the water longer, allowing them to grow larger, resulting in reduced sales in the first half but with projected strong second half sales.
At the time of writing, Tassal also offers investors a grossed-up dividend yield of 5.4%
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
“Soul Patts” is an ASX staple. With large stakes in Brickworks Limited (ASX: BKW) and TPG Telecom Ltd (ASX: TPM) along with a long list of other investments, it provides shareholders with a great diversified investment.
It also has an outstanding dividend history, even increasing its dividend recently when many companies have cut or deferred dividend payments.
In addition, Soul Patts has positioned itself to have the financial capacity to make investments during this bear market, with management actively looking for opportunities. With its track record at providing shareholder returns, I believe this time will be no different.
At the time of writing, Soul Patts trades with a grossed-up dividend yield of 4.8%.
Altium Limited (ASX: ALU)
Last on my list is the printed circuit board (PCB) software provider Altium. Although Altium has rebounded strongly from its low of $23.11, as at Thursday’s close it is still over 25% below its pre-crash high of $42.76.
It has recently withdrawn guidance, but according to CEO Aram Mirkazemi, Altium’s operating model is “robust and highly adaptable”. It has a strong operational position with no debt and a high level of cash.
Prior to the market crash, Altium was winning market share, increasing its product range and quickly growing its recurring revenue. Its PCB software is award winning and I believe growth will return for those with a long term view.
I believe the above 3 ASX 200 companies would make great investments this week, with the potential to be market beating over the long term.
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Motley Fool contributor Michael Tonon owns shares of Tassal Group Limited and 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 owns shares of Altium. 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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