On Wednesday I looked at a few shares that have been declared as Morgans’ best ideas for April. You can read about them here.
Today, I’m going to look at a few other shares that make the broker’s list. Here are three:
BHP Group Ltd (ASX: BHP)
Morgans has named this mining giant on its best ideas list for April. The broker is a fan of the Big Australian due to its diverse portfolio of assets and its resilient dividend profile.
The broker explained:
“We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”
Sydney Airport Holdings Pty Ltd (ASX: SYD)
One company that won’t be paying a dividend for a little while is Sydney Airport. Nevertheless, Morgans believes now is an opportune time to invest. This is because it sees the airport operator as a great option for investors looking for exposure to the COVID-19 recovery.
Its analysts said:
“Revenues have been badly affected by COVID-19-related government travel restrictions. For the short term SYD is no longer a yield stock (we do not expect it to pay a distribution until 2022/23). It is a capital growth play. SYD remains a premier airport asset whose earnings and thus share price we think will rebound with a recovery in pax (particularly the far more valuable international pax).”
Westpac Banking Corp (ASX: WBC)
Finally, this banking giant is the broker’s number one pick among the major banks. This is due largely to its current valuation and its risk profile.
“We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.