I'd buy BHP and these ASX 200 shares with $5,000 in May

These shares stand out as potential buys, offering a mix of income, growth, and diversification.

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As a new month begins, I think it is a good time to look at where fresh money could go in the current market.

If I had $5,000 to invest, I would focus on a small group of ASX 200 shares with clear drivers rather than trying to spread it across too many names.

Here are three shares I would consider.

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Image source: Getty Images

BHP Group Ltd (ASX: BHP)

BHP is where I would start. It is one of the largest and most established companies on the ASX, and I think it offers a compelling mix of income and long-term opportunity.

Iron ore continues to generate strong cash flow, which supports dividends. At the same time, copper is becoming the most important part of the business.

That is important because copper demand is expected to grow alongside electrification, renewable energy, and data centre expansion. There is also the Jansen potash project on the horizon, which adds another layer of growth over time.

For me, BHP provides a strong base. It is a mining business that can generate income today while still being positioned for future demand.

Qantas Airways Ltd (ASX: QAN)

Qantas is one ASX 200 share that I think looks very attractive after its recent pullback.

The share price has come down, largely due to external pressures like higher fuel costs, rather than a collapse in demand.

I think that has created a buying opportunity. The domestic market remains relatively rational, which supports pricing over time. There is also strong demand for travel, both domestically and internationally.

On top of that, Qantas is investing heavily in its fleet. Newer aircraft can improve efficiency, reduce costs, and open up new routes.

It also has additional earnings streams through its Loyalty division, which adds another layer to the business.

When I put that together, I see a company that still has multiple drivers, now trading at a lower price.

Codan Ltd (ASX: CDA)

Codan is a bit different to the other two, though that is part of the appeal.

This ASX 200 share operates across metal detection and communications, giving it exposure to different markets and demand drivers.

The Minelab segment benefits from strong gold prices, which can support demand for metal detectors. At the same time, its communications division provides equipment for defence and public safety. That creates multiple avenues for growth.

What I like is that the business is not reliant on a single theme. It has different segments that can perform at different times.

That could make it a useful addition alongside more traditional blue-chip names.

Foolish takeaway

If I had $5,000 to put to work in May, I would be comfortable backing a mix like this.

Each of these businesses is coming at things from a different angle, whether it is commodities, travel, or specialised technology. That variety matters, especially in a market that can shift quickly.

The common thread, in my opinion, is that all three still have something to build on from here. With the right time horizon, I think that combination can give investors a solid starting point.

Motley Fool contributor Grace Alvino has positions in Codan. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. 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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