The S&P/ASX 50 index is a large cap index which has been designed to represent 50 of the largest and most liquid shares listed on the ASX by float-adjusted market capitalisation.
While I wouldn't necessarily be a buyer of all the shares on the ASX 50, I think there are some top options for investors to consider at present.
Two that I would buy today are listed below:
CSL Limited (ASX: CSL)
The first ASX 50 share to consider buying is biotherapeutics giant CSL. I think it is one of the highest quality companies on the Australian share market and a great long term investment option. The company is made up of two businesses – CSL Behring and Seqirus. CSL Behring is behind immunoglobulins products such as Privgen and Hizentra, as well as haemophilia products Idelvion and Afstyla, amongst others. Whereas the Seqirus business is the second-largest player in the influenza vaccines industry.
The company's current product portfolio has significant growth potential as it is, but management isn't resting on its laurels. It continues to invest heavily in its research and development pipeline. As a result, CSL has a large number of potentially lucrative therapies and vaccines at various stages of development. I expect these to bolster its growth over the next decade and lead to more market-beating returns for investors.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another ASX 50 share to consider buying is Sydney Airport. I think it is fair to say that the pandemic has hit the airport operator harder than most companies. The good news is that its balance sheet strength has helped it navigate the crisis far better than others. And with travel markets expected to start their recovery in the coming months, its outlook is becoming increasingly positive. As such, now could be an opportune time to make a patient investment in this ASX 50 share.
Furthermore, while I wouldn't expect to receive a dividend in the second half of 2020, if Australia avoids a second coronavirus wave, I believe it will be well-placed to pay a decent dividend next year. And the following year I expect international tourism to be in full swing and its terminals to be heaving again. This should mean a dividend similar to previous levels, which implies a very generous yield well in excess of 6%.
