3 ASX shares I want to buy in October

Magellan Financial Group Ltd (ASX: MFG) is one of the 3 ASX shares I would love to top up or add to my portoflio this October.

| More on:
A man holds up his hand with 3 fingers up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on ⏸️ ASX Shares

a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.
Technology Shares

Here's why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.

Read more »

Worker in hard hat looks puzzled with one hand on chin
Resources Shares

Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

We look at what happened to this ASX 200 mining giant's shares last year

Read more »

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.
Share Gainers

Here's why the Rumble Resources (ASX:RTR) share price is climbing 5%

The mineral explorer's share price is on the rise amid promising drill results.

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Wednesday

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

comical investor reading documents and surrounded by calculators
⏸️ ASX Shares

The ASX reporting wrap-up: WiseTech, Bravura, Seven Group

Just what the investor ordered. Here’s a recap of the companies that reported on Wednesday...

Read more »

Doctor performing an ultrasound on pregnant woman
⏸️ ASX Shares

The ASX reporting wrap-up: Ansell, Kogan, Nanosonics

Just what the investor ordered. Here’s a recap of the companies that reported on Tuesday...

Read more »

blue arrows representing a rising share price ASX 200
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Tuesday

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »

unhappy investor considering computer screen
Share Market News

The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings

Just what the investor ordered. Here’s a recap of the companies that reported on Monday...

Read more »