When it comes to buying ASX shares, most investors will select investments that suit their particular ASX share focus. Those investors who invest for dividend income will normally pick an ASX dividend payer for their portfolio. Conversely, if you're a growth investor, you might choose a company that has been growing their revenue at a high rate, even if it doesn't necessarily pay a dividend.
But the 2 ASX shares I name below would fit well into any ASX portfolio, in my view. I think both offer solid growth prospects, the potential for dividend income and are trading at a fair valuation today. And best of all, I'm putting my money where my mouth is because I own both. Here they are:
Ramsay Health Care Limited (ASX: RHC)
Ramsay is the largest operator of private hospitals in Australia and also has a growing presence overseas. I love Ramsay as I think it is well-positioned to take advantage of our ageing population demographics with its top-notch hospitals. Ramsay has long been a growth share. It has delivered investors an average of nearly 17% per annum over the past 10 years (not including dividend returns).
Speaking of dividends, it was disappointing to learn that Ramsay is set to break its 20-year streak of annual dividend increases in 2020. However, I acknowledge this was a move made with prudence in mind. I'm sure Ramsay is set to resume its dividend growth in 2021 and beyond.
I'm excited about my own position in Ramsay and I look forward to benefitting from the company's great management and business expansion plans for years to come.
VanEck Vectors Wide Moat ETF (ASX: MOAT)
This exchange-traded fund (ETF) is one of my favourite investments. It's not an index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ). Rather, it only invests in a select group of US companies that have characteristics that indicate the presence of a 'wide moat'.
A moat is a concept popularised by Warren Buffett and translates into a durable competitive advantage a company might possess. This 'moat' protects the company from competition and disruption. Apple is a great example of a company with a wide moat. Think about Apple's brand power. It enables the company to charge relatively high prices for its products compared with any competitor. Not a bad trait for an investment to have.
At the time of writing, the MOAT ETF has 47 holdings. These include famous names like American Express, Amazon.com, Boeing, Buffett's own Berkshire Hathaway, and Harley Davidson. I'm more than happy to own such a basket of famous brands myself.
MOAT has returned an average of 15.69% over the past 5 years. A pretty good showing from an ETF. As such, I think MOAT can merit a place in any ASX portfolio, but especially those lacking in some American exposure.
