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3 ASX shares I want to buy in October

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Well, October is here, and we are now officially in the last quarter of 2020 — a year that many more of us than usual are probably looking forward to seeing the back of. Small milestones like this occasion are always a good opportunity for us to take stock and have a think about where our portfolios are standing and where we’d like to see them go. So in this spirit, here are 3 ASX shares that I’m looking to buy or top up on this month.

3 ASX shares to buy this October

1) WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC) that I already own. Even so, this LIC has such a high and robust dividend that I would love to add some more funds at the right price. On current pricing, WAM Research’s annual dividend of 9.8 cents per share is yielding a whopping fully franked 6.45%. Since the company told us last month that there are 34.9 cents per share left in WAM Research’s profit reserves, this dividend looks well-funded and sustainable to me. Unfortunately, at the current price of $1.52 a share, this company is trading at quite a premium to its underlying net tangible assets of $1.09 per share (as of 20 August). If this gap narrows in October, I’ll be topping up my holdings of this company.

2) Cochlear Limited (ASX: COH)

Cochlear was my Foolish stock pick of the month, so it would be remiss of me to neglect this company here. As I pointed out, Cochlear is a global leader in the healthcare space and dominates the market for hearing aids and assistance. For its customers, dealing with Cochlear is pretty much a necessity rather than a choice, which is great for this company’s bottom line. The impact of the pandemic is still well-and-truly priced into Cochlear shares right now, but I think the company will return to its pre-COVID form in FY21 and beyond. As such, this is a company I’m strongly considering adding to my portfolio in October.

3) Magellan Financial Group Ltd (ASX: MFG)

Magellan is the third ASX share I’m looking at this October. This company is the best funds management business in the country, in my view. It has grown enormously over the past few years, partly through both the stellar reputation of the company and of its chief investment officer, billionaire Hamish Douglass, and partly through an innovative line of new products. I’ve been impressed with the launch of the new Magellan High Conviction Trust (ASX: MHH) last year, which already has more than $980 million in funds under management. The new venture with Barrenjoey Capital is also a good move, in my view. I think Magellan will continue to grow at a very healthy pace over the next decade (especially with interest rates at near-zero), and so this company would be another ASX share I would love to add this October.

These 3 stocks could be the next big movers in 2020

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Sebastian Bowen owns shares of Magellan High Conviction Trust and WAM Research Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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