Markets have moved up a little from their lows. But volatility remains and investors, as always, can't be certain what comes next.

Stepping back from the day-to-day movements, I think it's as good a time as any to buy shares. Long term investors will make their money through the holding of quality shares, not by clever timing.

With this in mind, I think it could be a sensible time to top up on the following exchange-traded funds (ETFs) if they line up with your own investment strategy.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ETF tracks the performance of a number of emerging markets throughout the world. For investors looking at getting exposure to fast growing economies like China and India, this could be a great option.

The ETF owns a total of over 4,600 companies from countries like China, India, Taiwan, Brazil, South Africa, Thailand and many others. Breaking it down by country, China has the highest weighting at 34.7%, followed by Taiwan at 14.1%.

Looking at the fundamentals, the Price/Earnings (PE) ratio is 12.3, and the dividend yield is 2.8%. This means you're getting the underlying company earnings, which are growing quickly, for a relatively low price.

Emerging markets tend to be more volatile than developed markets, but for patient investors, the long term growth prospects could make up for that.

SPDR S&P/ASX 200 Fund (ASX: STW)

I know it's often said that an Aussie index fund isn't worth investing in because of the concentration in banks and miners. But I'm just not sure I buy that argument anymore.

The index has diversified a bit over the last few years. Our big banks like Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA)don't carry quite the same weight they used to.

Only a couple of years ago, the weighting to financials was over 40%. That is now down to a little over 30%, and that includes a whole bunch of insurance companies, fund managers and other financial services businesses, not just banks.

As for our miners, the reason they're such big companies is they've grown to be very profitable over the years, and are some of the most cost-competitive producers in the world, using Australia's mineral wealth to their advantage.

Looking at the fundamentals, the Price/Earnings ratio is just 15.3, which is right around the long term average (and cheap if you consider record low interest rates). The current yield is higher than the historical average at 4.7%, not to mention the distribution is around 77% franked.

Foolish takeaway

Both ETFs look quite attractive at today's prices. There's no guarantees of course, but if we look back in 10 or 20 years' time, I think those who simply purchased these shares and kept reinvesting the dividends would be very glad they did.

The post 2 ETFs I'd buy and hold for the next 10 years appeared first on The Motley Fool Australia.

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Getting a decent pay rise each year as employees seems to be a thing of the past for most. But by investing in quality companies which grow their dividends over time, we can experience this again.

Many ASX shares have a great history of providing shareholders with more income year after year. Here are three to get you started.

Carsales.com Ltd (ASX: CAR)

I think now could be a great time to pick up shares in this dominant online classifieds business. The Carsales.com platform continues to perform well domestically, and there's potential for strong growth from its South Korean and Latin American divisions.

Carsales has grown its dividend to shareholders every year since its first dividend in 2010. Shares currently trade on a solid fully franked dividend yield of 4.1%, or 5.8% including franking credits.

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

The investment conglomerate continues to perform well and delight shareholders. It's a very diversified company with interests in mining, telecommunications, building materials and financial services.

In FY18 Soul Patts announced another increase to the dividend as Group Regular Profit after tax climbed by 17.4% over the year. That's now 18 years in a row Soul Patts has increased the dividend, matched only by Ramsay Health Care Limited (ASX: RHC).

Shares trade on a fully franked dividend yield of 2.2%, or 3.2% including franking credits.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

There's no question Sydney Airport is a quality company. It's also been well managed, adding more services, shops, and accomodation options, to make the most of increased tourism numbers.

With strong domestic population growth and increasing numbers of visitors to Australia, Sydney Airport should continue to be a major beneficiary. For shareholders, this should translate into higher income over time.

Sydney Airport has increased the dividend for the last 6 years in a row, and that streak seems likely to continue for a while longer. Shares trade on a yield of 5.6% unfranked.

The post 3 quality ASX shares giving shareholders regular pay rises appeared first on The Motley Fool Australia.

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Investors looking for shares to buy in 2019 should consider adding some strong dividend payers to their portfolio.

With volatility picking up, having a reliable income stream will help investors sleep soundly at night and forget about the mood of the market.

Here's a couple of ideas to consider…

Aventus Retail Property Fund (ASX: AVN)

Aventus is a real estate investment company which owns 20 large format retail centres (think big, bulky products) around Australia worth $2 billion.

Tenants are a diverse mix of retailers including Bunnings Warehouse, Good Guys, Harvey Norman Holdings Limited (ASX: HVN) and Nick Scali Limited (ASX: NCK), with no tenant representing more than 4% of the rental income.

These type of tenants are likely to do relatively well despite fears around Amazon. Reason being, these businesses are selling mostly large physical products which people often want to check out in person before buying.

More than 85% of leases have contracted rent increases,with either a fixed rate or CPI. Aventus expects to pay a distribution of 16.6 cents per share this financial year, which means shares are currently trading on a yield of 7.7%.

Spark Infrastructure Group (ASX: SKI)

Spark owns regulated utility assets. Specifically, electricity networks in three states, including Victoria Power Networks, SA Power Network and TransGrid.

The company has strong and reliable cashflow which is inflation protected. This gives Spark the ability to pay a solid income stream to shareholders, regardless of what's happening in the market. Since 2011, the distribution has increased every year, and is forecast to increase another 4.9% this year.

Spark is far from an exciting business, but a strong and recurring income stream should provide comfort to investors during market volatility. Having said that, Spark is still looking to the future by investing in renewable projects, with 8 completed and 4 currently under construction.

Shares currently trade on a distribution yield of 7%

Foolish takeaway

Despite the market volatility, these companies should continue to provide reliable income to shareholders and are worth considering as part of a diversified portfolio.

The post 2 high yield ASX shares to boost your income in 2019 appeared first on The Motley Fool Australia.

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As investors head towards living off their portfolio, they often change focus from growth to setting up a reliable income stream.

Luckily for us, the ASX is about as good as it gets when it comes to dividends. Here are 2 companies with a great track record of providing a reliable and increasing income over time.

Event Hospitality and Entertainment Ltd (ASX: EVT)

Event Hospitality is a more than 100-year-old business which spans cinemas, hotels, resorts, and property. Its diverse nature means it has more choice over where to allocate capital to deliver returns for shareholders.

It's very well managed and has become a great income provider over the years. Since 2003, dividends per-share has risen from 11.5 cents to 52 cents, with no dividend cuts during that time.

Event shares currently trade on around 16 times earnings and a gross dividend yield of 5.7% including franking credits.

Ramsay Health Care Limited (ASX: RHC)

Ramsay may not be the high growth story it was a few years ago, but I still think the future looks bright for the global hospital operator.

A growing, and ageing, population goes a long way to underpinning future revenues for Ramsay, as well as the increasing number of surgical procedures available thanks to advancements in technology.

Ramsay is one of only two companies on the ASX to have increased dividends every single year since 2000 – the other company being Washington H. Soul Pattinson & Co. Ltd (ASX: SOL).

Ramsay Health Care shares currently trade on around 20 times expected FY19 earnings and a gross dividend yield of 3.9% including franking credits.

Foolish takeaway

I think both of these companies would make an ideal fit for an income-focused portfolio. Each paid an increasing flow of dividends to shareholders right through the GFC. If I had to pick one company to buy today it would be Event, simply because of the lower valuation and higher dividend yield.

The post 2 ASX shares to buy for rock solid retirement income appeared first on The Motley Fool Australia.

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Last Friday BKI Investment Co Ltd (ASX: BKI) released its Quarterly Report. BKI is a listed investment company (LIC) worth over $1 billion. In this report, Contact Asset Management (the manager of BKI) highlighted the increasing interest rate environment overseas and the flow on effects to markets and 'bond proxy' income shares.

Contact noted: "While we recognise the importance of interest rates on the valuations of businesses, we have witnessed on several occasions the market being overly pessimistic on the impact of rising rates on the bond proxies. Stocks with large levels of headline debt such as TCL, APA and SYD get caught up in this scenario every time this occurs. These three companies in particular are better than that. They fix long dated debt out 10-20 years at levels well within their scope of payback."

The three companies discussed were Transurban Group (ASX: TCL), Sydney Airport Holdings Pty Ltd (ASX: SYD) and APA Group (ASX: APA).

Transurban

The weighted average debt maturity for Transurban is 9.3 years, and the average cost of debt is 4.9%, so the toll-road operator is not overly affected by recent moves in bond yields.

On top of that, Transurban has extremely reliable revenues and the ability to increase tolls with CPI, or often greater than that.

It currently trades on a dividend yield of 5%, with future cashflows underpinned by projects underway, toll increases and population growth.

Sydney Airport

The average maturity for Sydney Airport is mid-2024, and the average cost of debt is 4.8%. Future revenue looks set to be much higher than it is today, as Contact noted:  

"In its Master Plan 2039, Sydney Airport expects international travelers passing through its terminals to double over the next two decades and underpin an expected 50% increase in passenger numbers (from 43.3 million in 2017 to 65.6 million in 2039)."

Sydney Airport is probably the best way to capture the benefits of the tourism boom. It currently trades on a dividend yield of 5.5%.

APA Group

There was less said about APA Group, although the message was the same. Contact (BKI) expects resilient and growing revenues to more than cover any increase in interest costs over time, with expected dividends from the company to continue growing as well.

It's another business with monopoly-like features which should hold up well through a downturn and provide a reliable income stream for investors. APA currently trade on a dividend yield of 5.3%.

The post Fund manager picks 3 ASX income shares to prosper despite higher interest rates appeared first on The Motley Fool Australia.

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On December 13, Marion Kohler, Head of Domestic Markets at the RBA, gave an insightful speech titled 'The Long View on Australian Equities'.

It's important you read this before the market wobbles makes you so nervous that you sell your shares in CSL Limited (ASX: CSL), Amcor Limited (ASX: AMC) or BHP Billiton Limited (ASX: BHP).

There were a number of interesting data points raised that Aussie investors should be aware of.  

On long term returns

"If you had put $100 into the equity market in 1900 in a portfolio that tracked the stock market index, you would have over $100,000 today after adjusting for inflation; this is more than 100 times what you would have earned from a Government bond or a bank deposit."

That should make younger investors sit up and take notice. The future is not yet written of course, but it's nevertheless a good example of what's possible with long term share market investing.

Another interesting point was the similarities between the returns from Australia, US and UK equity markets – all averaging around 10% per annum since 1900.

Recent performance

Marion also noted: "Over shorter periods there is more divergence. In particular, over the past 25 years Australian stock prices have gone up a bit less than the rest of the world, particularly the United States. But Australian companies pay high dividends, due in part to the specific tax treatment they receive; I am referring to franking credits, which were initially introduced in 1987. Taking this into account, Australian stocks have generated above-average returns over the past 25 years."

Top-heavy

One issue that's always raised about the ASX is the concentration of the market in the top 10 companies. But the RBA notes that given the size of the ASX, this is not unusual compared with other countries.

Australia is much more concentrated than the US and Japan for example, but less concentrated than New Zealand, Spain, Austria and Finland.

And speaking of concentration, Marion said the following on the financial sector: "The ASX is bank-heavy and the financial sector more broadly makes up about a third of the exchange by market capitalisation: almost exactly the same share as it did 100 years ago. The sector has also diversified quite a lot since its early days, with diversified financials and insurance companies accounting for a much larger share than they used to."

Outlook

She briefly touched on valuations by looking at price-to-earnings multiples: "By this measure, Australian equities are not showing signs of heightened valuations."

Marion concluded by saying: "Equities will be more volatile than safer assets, but will very likely yield higher returns over the long term, and the composition of the market will continue to broadly reflect the structure of the real economy."

Foolish takeaway

This report was a great highlight into the wealth created by corporate Australia over time. And with the ASX now trading on an average dividend yield of 4.5% and a P/E ratio of 15, it looks like a good time to increase our ownership stake in Aussie shares. Then we can sit back and collect our dividends while the next 100 years unfolds.

The post What the RBA says about buying ASX shares with 118 years of data appeared first on The Motley Fool Australia.

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The best income stream on offer for local investors comes from ASX shares. With term deposits paying you only enough to keep up with inflation, there's simply no way of generating a decent income unless we look elsewhere.

Here are two companies which are trading on very strong yields, that seem sustainable going forward.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is a surprisingly high performing retailer. Over the last 10 years, the company has grown its earnings per-share by around 10% per annum, and increased the dividend by 13% per annum. Today JB Hi-Fi pays out around 65% of its profits as dividends, which appears to be a sustainable level. The total shareholder return has been 14% per annum over the last decade.

Despite fears of Amazon destroying retail in Australia, JB Hi-Fi is still performing well. Over FY 2018 it delivered another year of profit growth, with earnings up by 9.2%. Sales are continuing to grow, this year up 21.8%, and online sales jumping by 32.1%, which is a good sign that JB Hi-Fi can compete in an increasingly online world.

It's still early days for online retail in Australia, so we'll have to see if competition intensifies over the next few years. JB Hi-Fi currently trades on around 11 times earnings and a grossed-up dividend yield of 8.3%.

WAM Research Limited (ASX: WAX)

This listed investment company (LIC) is managed by the high performing team at Wilson Asset Management, which has managed LICs going back to 1999 with its flagship fund WAM Capital Limited (ASX: WAM).

WAM Research targets undervalued growth companies which have strong fundamentals and where the portfolio managers identify a catalyst that should result in the stock being re-rated by the market. This strategy has been working well over the years, delivering a portfolio return of 16.2% per annum before fees, since 2010, compared to the market's return of 8.0% per annum.

The company uses its capital gains to pay out large fully franked dividends each year, while retaining some profit to smooth the income over time. Dividends have increased for 9 years in a row and it currently has around 3 years worth of dividends in the profit reserve. This means there's a very low chance of a cut to shareholders' income any time soon.

WAM Research currently trades at a premium to NTA of over 20%, so it looks a bit expensive. Despite that, the current dividend yield is a whopping 9.5% including franking credits.

The post 2 high dividend ASX shares with reliable yields over 8% appeared first on The Motley Fool Australia.

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As the year comes to an end, most investors are probably wondering what next year will bring. The future is uncertain, as always, but making sure the companies you own are good quality is a decent place to start.

Concerns over valuations have pushed some of the higher growth shares down to cheaper levels recently. Market favourites like CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH) still look far from cheap.  On the other hand, here are 2 companies with decent growth, trading on much lower multiples, which look likely to keep delivering growing dividends…

Bapcor Ltd (ASX: BAP)

Shares in the automotive parts distributor have fallen around 20% since early October. The company continues to perform well with net profit increasing by 32% during FY2018, which allowed it to increase the dividend by 19%.

Management has forecast for a still solid 9% to 14% profit growth during this financial year. Given the low payout ratio of 50%, there is plenty of scope for another healthy boost to the dividend. Since the first full year result in 2015, the company has grown its dividend at double-digit rates each year.

Bapcor is a strong player in its field and trades on a price-to-earnings multiple of just 20. The current dividend yield is 2.3%, fully franked.

Accent Group (ASX: AX1)

This footwear retailer's shares are also down around 20% from a few months ago. And again, this is a company that is doing just fine. It's delivered earnings growth of 13% per annum over the last 5 years, continues to increase its store count, and online sales are growing strongly.

Accent is a well managed company with strong brands and a history of reliable growth. The company just announced a profit upgrade for the first half and the CEO has also bought another 250,000 shares, which can only be seen as a positive sign.

The dividend has grown at a double-digit rate over the last 5 years and given the solid outlook, there's a good chance of another decent increase this year. Accent trades on around 16 times earnings and a dividend yield of 4.9%, fully franked.

The post 2 top ASX shares to buy for growing dividends in 2019 appeared first on The Motley Fool Australia.

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The best times to invest are times like these when the market is down and investors are nervous. If you can stay calm and take a long term view, you'll likely achieve much better results over time.

You may not get the timing right, but don't worry, nobody can do that consistently. What we can do though, is choose sensible investments which have a good chance of delivering solid returns. With this goal in mind, I think these are a couple of the best investment options on the ASX for long-term growth.

$10,000 – Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)

Soul Patts is one of the lowest risk shares on the ASX, in my opinion. The company has a diversified portfolio of investments, including Brickworks Limited (ASX: BKW), TPG Telecom Limited (ASX: TPM) and New Hope Corporation Limited (ASX: NHC).

Over the years Soul Patts has delivered outstanding returns for shareholders – 16.7% per annum over the last 40 years to be precise. This means $1,000 invested in 1978 is now worth $484,310 if you'd reinvested your dividends.

Speaking of dividends, the company is a very reliable income provider and the dividend has increased every year since 2000. Management is well aligned with shareholders because it owns very large stakes in the company and continually looks for ways to increase shareholder value, like recently selling the iconic Pitt Street Mall headquarters that the company has owned for generations, for $100 million. Over the long term I think Soul Patts should continue to create wealth for shareholders.

$10,000 – Vanguard MSCI Index International Shares ETF (ASX: VGS)

This index ETF is managed by Vanguard and listed on the ASX. It tracks the performance of medium and large sized companies in the developed world outside Australia. Holding this ETF means you'll continually hold most of the biggest international companies and therefore the biggest winners over time.

With this one holding, you'll own a tiny piece of over 1500 companies, from the US, Japan, UK, France, and Germany. It doesn't get much easier than that. Many of these companies reinvest heavily into their businesses, meaning this should translate into good growth over the long term.

Fees are very small at 0.18% per annum. This index fund has great diversification, with no sector representing more than 17% of the portfolio. Since listing in November 2014, VGS has had performance after fees of 12.13% per annum. The current dividend yield for the fund is 2.4%.

The post Where I'd invest $20,000 into ASX shares for long term growth appeared first on The Motley Fool Australia.

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Most people are scared of market volatility. Very scared. Some investors liquidate their holdings and go to cash at the first sign of trouble. That's not investing.

Some investors will take profits on certain shares in anticipation of further falls, or set stop losses in the hope that it limits their downside. That's not investing.

Another group will watch all the macro themes playing out – the trade wars, US tightening interest rates, China slowing down – and decide now is the time to get out. The strategy is obviously to get back in 'when the dust settles'. Although it may sound smart, that's not investing either.

There's a final group of investors who regard falling prices as nothing more than a buying opportunity. They know in the long run the market will reflect the growing prosperity of the human race, so price falls today will mean little in 50 years time. These are long-term investors who think and act like owners. To be frank, the only true investors.

Think of it this way…

The market and the economy over the next few decades will be shaped by population growth, innovation, and a whole host of other things. Most of this long-term stuff doesn't change within a matter of months. Therefore you'd have to admit, the profits that will be generated by businesses as a whole from now until 2050, will be largely unaffected by any recent events.

Despite that, prices are down over 10%. Because people only seem to care about the next 20 minutes, rather than the next 20 years.

Dividends for most companies are actually increasing this year and economies are still growing. So if we look at this rationally, this is nothing but a buying opportunity. Dividend yields are now higher than they were. Likewise, your future returns are now higher than they were because the starting point is lower.

So if you liked BHP Group Ltd (ASX: BHP) at $35.50, you should like it now at $31.50. And if you liked Carsales.com Ltd (ASX: CAR) at $15, then it's a lot more attractive at $11, right?

Or you can always just buy the entire basket of stocks with an ASX 200 index ETF like  SPDR 200/ETF (ASX: STW).

Foolish takeaway

Shying away from the sharemarket because it has fallen makes no sense whatsoever. If anything, it should make buying shares more appealing. You're simply getting a lower buy-in price and a higher dividend yield than you were before. To torture Warren Buffett's analogy: the price of hamburgers has fallen, it's time to buy some more.

The post Why long term investors should love this ASX share market volatility appeared first on The Motley Fool Australia.

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Investing in the sharemarket for dividends makes so much sense to me. One of the best ways to achieve great long-term results is to simply buy good dividend paying companies and continually reinvest your dividends.

This way your ownership and income will compound and ideally, you'll end up with a very large sum indeed.

Here are 2 companies I own which I expect will have solid returns and continue to pay increasing dividends over time.

Wesfarmers Ltd (ASX: WES)

After recently spinning off Coles Group Ltd (ASX: COL), Wesfarmers will be looking to reinvest capital into higher growth opportunities. If the company can keep the momentum going at Bunnings and Kmart, this can more than offset any weakness at Target.

We'll have to wait and see whether Wesfarmers finds any acquisitions or uses for the cash it is now sitting on. Either way, I think management will do what's best for shareholders and continue to steer the ship in the right direction.

Management has flagged that the dividend policy will remain the same, so shareholders can still expect a solid level of income from Wesfarmers going forward. I like the conglomerate structure and think this is one of the better dividend shares on the ASX to own.

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

Like Wesfarmers, this is another conglomerate which owns a range of businesses. This gives Soul Patts diversification so it isn't overly reliant on the earnings of one business to succeed. In other words, with stakes in the building, telecommunications, mining, and financial services, it has multiple ways to win.

After a solid run-up in the share price, Soul Patts no longer looks cheap like it once did. But shareholders are likely to keep receiving that very reliable income stream.

The dividend has been increased every year since 2000, giving the company one of the best track records on the ASX. The only other company to match this dividend streak is Ramsay Health Care Limited (ASX: RHC).

Foolish takeaway

Both companies are diversified investment conglomerates with good management and a strong track record. Looking at each today, I think Wesfarmers is more attractively priced, but I'd be happy to buy and hold both for the long term.

The post 2 of my favourite ASX 200 shares for compound growth and income appeared first on The Motley Fool Australia.

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Beating the share market over a meaningful timeframe is hard. If someone tells you it isn't, they're either lying to you or deluding themselves.

The fact is, the vast majority of professionals and expert stock pickers will lose to the market over the long term after trading costs and fees are accounted for. There's a number of reasons for this.

The sheer amount of competition in funds management. The increasing level of research and sophistication among analysts. Paradoxically, this is making it harder for funds to beat the market, as the competition is just as smart and hardworking as they are. The rise of indexing means there's not as many Mum and Dad investors in the market to earn excess returns from.

I also think that innovation and technology has made the business world faster, with the possibility that certain businesses become obsolete much quicker than used to be the case. And the rapid advances in technology means the future is probably harder than ever to visualise with any certainty.

According to SPIVA Research, 80% of Australian General Equity funds underperformed the index over the last 15 years. International funds performed even worse, with 91% being beaten by the index in the same period.

The only shining light for funds management in Australia was in the mid and small-cap space, where 53% of funds managed to beat their respective benchmark over the last 15 years.

What does this tell us?

Well, that humility should play a part in our investing. We should be honest with ourselves about whether we really are smarter than the person on the other side of the trade.

Also, that index fund investing is about as foolproof a strategy as you're going to get. This means you should probably have a good reason for venturing off elsewhere.

So, by simply putting money into an Aussie index fund like SPDR 200/ETF (ASX: STW), you'd beat about 80% of professionals. Pretty interesting, right?

So why would you stray from this approach?

You may be satisfied with earning a similar return to the market, or even slightly less, with a diversified investment company like Australian Foundation Investment Co.Ltd. (ASX: AFI), if it means you get a more dependable dividend stream than the index.

For example, AFIC was able to continue paying the same level of dividends during the GFC, something the index can't do. Retirees would have been incredibly comforted in that situation.

It's also possible that adding mid/small cap funds may boost performance if you believe in the manager and their strategy. In Australia, funds in this sector of the market have performed quite well over the long term.

Foolish takeaway

Overall, it seems the case against actively managed funds is a strong one. I think it's worth considering putting a decent portion of your portfolio into a broad, low-cost index fund like the SPDR 200, or at least widely diversified low-cost LICs. You're likely to beat the results from most highly active, high fee managed funds, allowing your wealth to compound effortlessly over the decades.

The post The ASX ETF to buy to help you beat the experts appeared first on The Motley Fool Australia.

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It's now been more than two years since the Reserve Bank of Australia (RBA) has moved interest rates. And the RBA seems pretty happy with the economy chugging along as it is, not too hot, not too cold.

This means a rate increase is probably a fair way off. So the rates on term deposits will continue to be very low for the foreseeable future. You could always invest in property, but the rental yield after costs isn't much better than a term deposit in most cases.

The best place to invest for income is the Aussie sharemarket. So here are 2 examples of high yield shares worth considering.

Aventus Retail Property Fund (ASX: AVN)

Aventus is the owner of 20 large format retail centres (think big, bulky products) around Australia worth $2 billion. The portfolio is tenanted with a diverse mix of strong retailers including Bunnings Warehouse, Good Guys, Harvey Norman Holdings Limited (ASX: HVN) and Nick Scali Limited (ASX: NCK), with no tenant making up more than 4% of the rental income.

More than 85% of leases have contracted rent increases, with either a fixed rate or CPI. Management has noted that there is a large amount of excess site space available across the portfolio which provides further opportunities for development or optimisation.

Aventus expects to pay a distribution of 16.6 cents per share this financial year, which means shares are trading on a yield of 8%.

BKI Investment Co Ltd (ASX: BKI)

This listed investment company holds a diversified portfolio of Aussie shares from a range of sectors, focusing mostly on those with strong yields. And it's not as bank heavy as you might think, with only 22% of the portfolio currently made up of banks.

BKI aims to regularly increase the dividend paid to shareholders over time and charges very low management fees – its total expense ratio for FY 2018 was just 0.16%. The dividend has been steadily increased each year since the GFC.

The appeal here is, you get a ready-made portfolio of higher yield shares and a reliable dividend stream, with no effort involved. For retirees looking for a simple way to get a decent level of income, this is a good option in my view.

BKI trades at a slight discount to NTA and a dividend yield of 7.1%, including franking credits.

The post 2 high yield ASX shares to buy today appeared first on The Motley Fool Australia.

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Many people are focused on short-term wins in the sharemarket. A quick trade here, and a few speculative plays over there. While it sometimes works, these punters are missing out on the best part of investing – compounding.

Investing for the long-term works for so many reasons. Lower taxes. Lower transaction costs. Less effort. Most effective of all is letting those investments grow over time, rather than having to find new trading opportunities.

Here are two investments which I think are a good bet over the next decade.

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

Soul Patts is probably the most boring growth company on the ASX. But I say that in the best possible way. Over the long term, this company has been one of the best investments you could possibly ask for.

Over the last 40 years, Soul Patts has shown a return of 16.4% per annum. Not only that, it has increased the dividend every year since 2000.

It's very well diversified, with stakes in solid businesses such as Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPM) and New Hope Corporation Limited (ASX: NHC). Management also owns a large amount of shares giving good alignment with shareholders.

I expect Soul Patts will continue to prosper over the next 10 years and beyond. Shares are up over 50% this year, but still don't look all that expensive to me.  The current dividend yield is 3% including franking credits.

Treasury Wine Estates Ltd (ASX: TWE)

Shares in the global winemaker and distributor are down around 30% from the highs earlier in the year, making the company more attractively valued today. Earnings continue to increase, with Treasury selling more wine at higher prices, as its premium brand strategy gains momentum.

Over the last 5 years, earnings per share has grown by 17% per annum, while the dividend has also increased regularly. During FY 2019, management is expecting to deliver profit growth of 25%.

Given the strong brands in its wine portfolio and the company's growing Asian segment, it seems likely that Treasury will be earning much more in 10 years than it is today. Shares currently trade on a dividend yield of 3.7% including franking credits.

The post 2 high quality ASX growth shares to buy and hold for the next 10 years appeared first on The Motley Fool Australia.

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As an income investor, I love a good dividend yield. But more importantly, I look for companies with sustainable yields, which can afford to keep paying shareholders a strong level of income. It's no use getting a high income today if the dividend is at risk of being cut severely.

Here are 3 ASX companies which I think have strong and sustainable yields.

Spark Infrastructure Group (ASX: SKI)

Spark owns regulated utility assets. Specifically, electricity networks in three states, including Victoria Power Networks, SA Power Network and TransGrid.

The company has strong and reliable cashflow which is inflation protected, and this gives Spark the ability to pay sustainable income to shareholders. Since 2011, the distribution has increased every year and is forecast to increase another 4.9% this year.

Spark shares currently trade on a distribution yield of 6.6%.

Growthpoint Properties Australia Ltd (ASX: GOZ)

This real estate investment trust (REIT) has been a good performer since the GFC.

Growthpoint owns a large portfolio of office and industrial properties worth over $3 billion. The portfolio has a strong cashflow profile and contracted rental increases which average 3.3% per annum.

It has been regularly increasing distributions for shareholders over the years, with the most recent payment increasing by 3.3%, and the company has just guided for FY19 distribution growth of 3.6%.

Growthpoint shares currently trade on a yield of 6.2%.

WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company which focuses on small and medium-sized companies, which the investment team believes are undervalued and have strong business fundamentals.

Performance has been solid since 2010, with portfolio returns before fees of 16.7% per annum, beating the market's 8.4% per annum.

Gains are continually harvested and the company pays out large fully franked dividends from these profits. There's currently 3 years worth of dividend payments in the 'profit reserve' which means the next few years of dividends are already covered, so the chance of a dividend cut is very small.

WAM Research shares currently trade on a yield of 9.7% including franking credits.

The post Why I like these 3 high yield ASX shares appeared first on The Motley Fool Australia.

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As an income-focused investor, my favourite metric to measure performance is dividend growth. High yield companies, I accept, will have lower growth in dividends. For lower yield companies, I expect that dividend to grow strongly over time.

Like a salary, a lower starting income is OK, if our income is going to grow quickly over the years.

Here are 2 companies who are managing to do just that…

Ramsay Health Care Limited (ASX: RHC)

The market has fallen well out of love with Ramsay Health Care, with shares down more than 30% from their peak in 2016. The outlook for lower growth in the next couple of years has investors spooked. But if you believe in the long-term tailwinds of strong population growth in Australia and an ageing population globally, and you're satisfied Ramsay is still a solid hospital operator, then this could be a buying opportunity.

Ramsay has been a great long-term performer and delivered strong dividend growth. It has one of the best track records on the ASX in this area. Dividends have grown at a rate of 16% per annum over the last decade, and dividends have increased every single year since 2000. The only other company to achieve this is investment conglomerate Washington H Soul Pattinson & Co. Ltd (ASX: SOL).

Shares currently trade on a dividend yield of 3.7% including franking credits.

Transurban Group (ASX: TCL)

The toll road king has been a solid long-term performer. It continues to increase its portfolio of roads in Australia and overseas while rewarding shareholders with increasing cash payments.

The cities that Transurban operates in are set to have strong continued population growth over the long term. Combine that with mandated toll increases and it's hard to see a future where Transurban has lower earnings. Autonomous cars are a possible risk, causing there to be fewer cars on the road. But it's also possible it could increase the number of trips taken by road, as the predicted low cost of autonomous vehicles would make public transport less appealing.

As for income, Transurban has grown its distribution to shareholders at roughly double-digit rates since the GFC. That's pretty impressive, considering it's hardly a cutting-edge, exciting business. I expect distributions to keep growing at a solid rate over the next decade.

Transurban currently trades on a yield of 5%.

Foolish takeaway

These are solid businesses, each with a good track record of earnings and dividend growth. I think both have bright futures and shareholders should be well rewarded with a growing income stream.

For more dividend growth ideas, check out the Motley Fool's brand new report below, on the best dividend picks for 2019.

The post 2 quality ASX companies giving shareholders regular pay rises appeared first on The Motley Fool Australia.

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Every year a large number of baby boomers hit retirement age. Some will continue working, but others who set themselves up with income producing investments, can sit back and enjoy their golden years.

Reliable income is the goal at that point. With this in mind, here's where I'd invest for a sustainable income stream in retirement.

Diversified United Investment Limited (ASX: DUI)

DUI is one of the most reliable LICs on the ASX. The company has never cut dividends in more than 25 years as a listed company. Quite the opposite, it has been regularly increasing the income paid to shareholders.

It holds a diversified portfolio of mostly large Aussie shares, like CSL Limited (ASX: CSL), Transurban Group (ASX: TCL) and Wesfarmers Ltd (ASX: WES).The portfolio also contains 16% weighting to international shares, through a few ETFs.

Fees are very low, at 0.15% per annum, and the current dividend yield is 5.3% including franking credits.

Brickworks Limited (ASX: BKW)

Part building products company, part investment company, Brickworks is as reliable as they come. It owns brands such as Bristile Roofing and Austral Bricks, and has large investments in an industrial property trust and a very large holding in Washington H. Soul Pattinson & Co Ltd (ASX: SOL).

The holding in Soul Patts is in fact, worth more than the market value of Brickworks. This means you're getting the property assets and building products businesses for nothing.

As for income, Brickworks has only cut dividends once since listing in 1962. That itself is an incredible achievement. The payout ratio is currently very low at just 39%, giving the company plenty of cushion in a building downturn, and even scope to continue increasing the dividend.

Brickworks currently trades on around 11 times earnings and a dividend yield of 5.1% including franking credits.

Foolish takeaway

These two companies are about as solid as they come. I'd be happy relying on dividend payers like this as sources of retirement income. For more dividend share ideas, you can check out the brand new report just released by the Motley Fool's expert analysts below.

The post 2 rock-solid dividend shares you should own in retirement appeared first on The Motley Fool Australia.

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Shares of certain quality companies seem to get cheaper by the day. Many in the market are now perhaps too scared to own shares that are 'priced for perfection', which rely on high earnings growth to justify their valuations.

This makes sense in a lot of cases. But there are a few quality names that are starting to look like good value. Here's two to consider…

Bapcor Ltd (ASX: BAP)

Shares of the automotive parts distributor are down around 15% in the last couple of weeks alone, while the underlying business is still doing well. The company's latest result showed strong revenue growth of 22% and earnings per share growth of 32%.

Bapcor's sales figures continue to be solid, with retail stores achieving same-store sales growth of 4.4%. The company plans to increase the store count over the next few years to eventually reach 200 stores, from 128 today.

Electric vehicles are a risk here due to the lower amount of parts involved in these vehicles, but that seems to be a long way from making a dent in Bapcor's business. Bapcor shares currently trade on around 20 times earnings, which seems cheap for a company continuing to grow earnings at double-digit rates.

Orora Ltd (ASX: ORA)

Shares of the packaging and visual communications company are down around 20% from the high earlier in the year. The company continues to grow sales and earnings in both Australasia and North America. It is reinvesting into new plant and equipment, making capital allocation decisions with a strong focus on returns.

I like that Orora's business tends to have continuous demand throughout the cycle, so earnings are more predictable over time compared to the likes of Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP).

Since being spun-off from its parent company Amcor Limited (ASX: AMC) 5 years ago, earnings and dividends have grown at an average rate of 12% per annum, and 13% per annum, respectively. Orora shares currently trade on around 18 times earnings and a dividend yield of 4.2% which is 30% franked.

Foolish takeaway

Both companies look equally attractive at today's prices. Each is a reliable business with growing earnings and dividends.

Looking for more growth ideas? Then you'll want to check out the free report below.

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The market is now well down from its highs earlier in the year. That doesn't worry me, because lower prices mean higher dividend yields. The following companies look attractive at today's prices and offer an attractive income stream.

$5000 – Accent Group Ltd (ASX: AX1)

This company owns a number of footwear businesses, focusing on the growing active and lifestyle segments. It has distribution rights for a number of brands, including Skechers and Platypus.

Accent has been gaining traction with its online offering, with sales more than doubling in FY18. The company opened 31 stores last year and plans to open another 30 in FY19, bringing the total to over 470.

Accent shares are down almost 40% from their high, despite earnings and dividends continuing to grow. In fact, over the last 5 years, earnings and dividends have grown by 13.8% per annum and 11% per annum, respectively. Today Accent trades on around 13 times earnings, and a gross dividend yield of 9%, including franking credits.

$5000 – Carsales.com Ltd (ASX: CAR)

Despite shares being down around 30% from their highs, the online car classifieds business is still performing well. Earnings and dividends have been growing steadily at around 9% per annum, over the last 5 years.

Carsales may be able to keep that growth rate up with its now 100% ownership of SK Encar (the South Korean version of Carsales.com) and its Latin American business. Both offer access to large populations, which could prove very rewarding if the company can manage to gain traction in these markets.

With a bit of luck, Carsales may be able to develop the same network effect that it has in Australia, that sees more people use Carsales, simply because so many other people are using Carsales. The company continues to dominate in Australia because of the network effect, much like REA Group Limited (ASX: REA) and SEEK Limited (ASX: SEK) dominate their respective niches.

Carsales shares look good value right now, trading on only around 21 times earnings. Carsales trades on a dividend yield of 5.5%, including franking credits.

Foolish takeaway

Buying both of these companies would offer a reliable yield of 7% including franking and offer solid growth prospects over the next few years. If you're looking for another growing company with juicy dividends, check out the free report below.

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I'm a big fan of listed investment companies. It's an easy way to buy a diversified portfolio of shares in one basket.

There's a huge number of LICs available on the market now – far too many to keep up with – many with different strategies. If you're looking for a high-income today, here are 2 high yield LICs you might want to consider.

Platinum Capital Limited (ASX: PMC)

This is an international focused LIC, managed by Platinum Asset Management Limited (ASX: PTM). It's been running since 1994 and has had market-beating performance over its 24-year history. Platinum Capital has had a return (after fees) of 12% per annum over that time, compared to the MSCI World Index return of 6.9% per annum, both including dividends.

The portfolio is currently heavily weighted towards Asia which has caused underperformance in recent years. Despite this, the company is sticking to its guns and sees many companies in this area with strong prospects and believe they're currently undervalued.

Shares trade at a premium to NTA of over 10%. The current dividend yield is 8%, including franking credits.

WAM Capital Limited (ASX: WAM)

WAM is an ever-popular choice with retail investors who are looking for income. This LIC focuses on buying small and mid-sized companies which look undervalued and WAM believes will soon be re-rated higher by the market.

The unusual thing is WAM tends to hold a lot of cash, even more so when the market is going through periods of volatility. Currently, the portfolio is 35% cash. It's a strategy that works for the company, with returns before fees since 1999, of 16.9% per annum. That compares to the All Ords Accumulation Index return of 8% per annum.

WAM's focus is paying out large and growing dividends from gains realised in the portfolio. Shares are trading at a premium to NTA of around 20%. The current dividend yield is 9.9%, including franking credits.

Foolish takeaway

Both LICs are trading at premiums currently. This tells me that investors buying these shares are more focused on the dividend income than the NTA value of the company. Both are quality LICs that are well managed and have proven themselves over time, but I wouldn't pay the large premium they're trading at today.

The post 2 proven LICs with massive fully franked dividends: should you buy? appeared first on The Motley Fool Australia.

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