2 ASX shares I've been buying!

I liked the prices being offered by these 2 stocks.

| More on:
Smiling man working on his laptop.

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

I regularly like to invest in ASX shares that can offer solid long-term returns. Sometimes my investing is aimed at ASX growth shares, and sometimes I choose ASX dividend shares.

I like the cash flow provided by ASX dividend shares, particularly ones with regularly growing dividends or ones with (resilient) high yields.

In this article, I'm going to cover two ASX shares I recently bought, one with a high yield and one with a regularly-growing payout.  

Metcash Ltd (ASX: MTS)

Metcash supplies food to IGA supermarkets and liquor to a large number of retailers including Thirsty Camel, Big Bargain Bottleshop, Duncans, Cellarbrations, The Bottle-O, IGA Liquor and Porters Liquor. It also has a hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

The business is currently raising capital to pay for some acquisitions, which I like the look of.

I like the businesses it's buying with the cash. One acquisition is Superior Food, a business to business (B2B) food supply company, which is a "logical extension" of the ASX share's food strategy. Food service is described as a large and growing market.

Metcash is also buying Bianco Construction Supplies, a construction and industrial supplies business servicing the South Australia and Northern Territory trade market.

The final business it's buying is Alpine Truss, one of the largest frame and truss operators in Australia.

I decided to take part in the capital raising to increase my holding at a price I liked, which is $3.35 per share, a 10% discount to the current Metcash share price. At this level, the FY24 forecast dividend per share (on Commsec) translates into a grossed-up dividend yield of 8.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I like to regularly invest in Soul Pattinson shares. It offers diversification with a portfolio across a number of different sectors including telecommunications, resources, financial services, agriculture, swimming schools, property, bonds/credit and many more.

The ASX share uses the investment cash flow it receives to pay a growing dividend to investors. It has increased its annual ordinary dividend every year since 2000.

It's steadily investing its excess cash flow into more investment opportunities, which can help the cash flow, portfolio value and dividends of Soul Pattinson in the future.

I like this one a lot because it's steadily building the underlying value, which is helping my wealth.

Motley Fool contributor Tristan Harrison has positions in Metcash and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Westpac stock: Should you buy the 5.5% yield?

Is Westpac an easy buy today for that 5.5% yield?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Is Core Lithium stock a good long-term investment?

Is this lithium dog a buy-the-dip opportunity today?

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

Is Telstra stock a smart buy right now for dividends?

Would I buy Telstra shares for that hefty dividend yield today?

Read more »


1 top ASX growth stock to buy that's down 40%

Here’s why I think this stock could fly higher.

Read more »

Three hikers lift their arms in jubilation as they reach a rocky peak overlooking a sensational view of water and mountains with a blue sky surrounding them.

3 ASX shares to buy for great portfolio diversification

I like what these ASX shares have to offer.

Read more »

A graphic featuring renewable energy sources such as wind, solar and battery power, indicating positive share prices growth in the ASX renewable sector

Why I'm eyeing this ASX energy share to double my money

Owning a stake in another fast-growing company could be transformative.

Read more »

The Two little girls smiling upside down on a bed.

2 exciting ASX small-cap stocks that could grow significantly

International growth is very compelling for these stocks.

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today

Seeing red? The ASX All Ord shares I'd buy on a down day

With the markets taking a turn for a worse, here are the stocks I'm eyeing.

Read more »