Why this rich lister is buying ASX dividend shares that ‘pay you to wait’

Let’s take a look at how this rich lister is investing his money in 2022.

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Key points

  • 2022 is shaping up to be a difficult year for ASX investors
  • Rising inflation means it is difficult to pick ASX winners
  • Let's see how this rich lister is investing his money today

With the recent gyrations of both the S&P/ASX 200 Index (ASX: XJO) and global share markets, it’s certainly a time when investors have to think carefully about which ASX shares to buy. Shares of all shapes and sizes have been going through a period of intense volatility recently, and this can be confusing and anxiety-inducing for many investors.

So in times like these, it can be a good idea to take stock of what the ASX’s experts are doing. And who better to seek investing inspiration from than the richest investors out there.

So let’s check out where AFR Rich Lister Robert Whyte is putting his cash right now. As reported in the Australian Financial Review (AFR) this week, Mr Whyte is a share market and property investor. This year’s Rich List put him at a new worth of $925 million.

This rich lister is buying ASX dividend shares…

Mr Whyte has been through five recessions in his investing career. According to Whyte, getting through those recessions required an understanding that “markets revert and patience is rewarded”.

Today, he is anticipating “a tough two years” in light of rising inflation, which he describes as “out of control”.

As such, Whyte is “putting some investments on the sidelines”, instead, favouring those investments that “pay you to wait”:

At this point in the cycle doing nothing and being a rabbit in the headlights doesn’t work. You still have to make active decisions. Mine are to stay in cash, buy some dividend producing stocks, review the portfolio but don’t make decisions that involve risk in a market where you don’t know where the risk is going…

We are not in a hurry to reduce our cash position, which at some point, will enable us to buy growth at hopefully better prices. It’s all about the entry point. We are in income-producing opportunities, including selective shareholder-friendly retailers and banking stocks, which may have lower growth but you are paid to wait through dividends.

Among these ASX dividend shares, Whyte identifies Harvey Norman Holdings Limited (ASX: HVN) as a “boring stock” he is favouring right now. In addition, Whyte also reckons miners like BHP Group Ltd (ASX: BHP) are also worth a look.

Dividend shares become particularly attractive to some investors during high periods of inflation because of that ongoing yield a dividend can provide. So it’s perhaps no surprise that a professional investor like Whyte is looking for strong ASX dividend shares right now.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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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