The S&P/ASX 200 Index (ASX: XJO) is full of top shares that would be good additions for almost any portfolio.
ASX 200 shares are large enough to be fairly robust (compared to small caps). And outside of the ASX 20, I think there are many ASX 200 shares that have good growth potential despite the coronavirus.
Here are three of those ideas:
Service Stream Limited (ASX: SSM)
Service Stream is involved in designing, building, maintaining and operating network infrastructure. The networks it's involved with include telecommunications, electricity, gas, water and 'new energy'.
Underlying profit and the dividend have continued to grow attractively over the last few years and utilities will continue to be important during this period and beyond.
I think it could provide an attractive combination of dividends and earnings growth over the coming decade compared to most ASX 200 shares.
Altium Limited (ASX: ALU)
I think Altium is one of the highest-quality shares in the ASX 200. It has very efficient, focused management that are steering the company towards achieving a global market leading position by 2025.
The electronic PCB software business has been a solid performer year after year. It's facing short-term impacts from the coronavirus which is causing prices to fall and probably the margin too. But for the long-term I think it's better to continue winning new clients so that after the coronavirus it has a large group of new, sticky clients that will pay full price fees year after year. It's still aiming for 100,00 Altium Designer subscribers by 2025.
The cloud offering of Altium 365 is an imperative part of winning over new clients. It's why Altium is investing heavily in Altium 365 for an even better experience.
Altium has a very solid balance sheet. In the recent update it said that it had US$77 million of cash.
I'd love to buy more Altium shares for my portfolio, but I'm waiting for a cheaper share price.
Brickworks Limited (ASX: BKW)
Brickworks is an ASX 200 share stalwart. It has been listed on the ASX for decades and it hasn't decreased its dividend for over forty years. That's a great record in my opinion.
In the short-term I don't think most investors are giving enough weight to the quality and value of its non-construction assets. If the industrial property trust was valued by the market like 50% partner Goodman Group (ASX: GMG) is, Brickworks would have a higher share price. Brickworks' investment division also provides very defensive earnings and dividends.
Things do look tough on the construction side of things in 2020. But it won't be like this forever. Australia and the US will continue to need building products in the future, even if it takes 12 months (or more) to recover. But Brickworks is a great business which will recover quickly once orders start coming in.
It also current offers a grossed-up dividend yield of 6.4%. I think it could be one of the best ASX 200 dividend shares.
Time to buy these ASX 2oo shares?
I think all three of these shares look like good long-term ideas to me. I'm waiting for a better share price to buy Altium shares, but Brickworks could be a great long-term buy today.
