With interest rates at all time lows, the RBA hinting at the possibility of a rate cut, and with the recent market sell-off, there are now a number of great companies on the ASX that represent excellent value for long term investors. If I have cash in a savings account here is where I would invest it:
ResMed is the leading business in the treatment of sleep apnea. The business has opportunities to expand into the Chinese market, and is also moving into the digital health market via acquisitions and partnering with Google’s healthcare arm. Read more here.
Collins Foods has seen strong growth on the back of KFC store acquisitions and the introduction of Taco Bell into the Australian market. This growth is likely to continue, along with this, a dividend increase this year. The CEO has also been selling shares to pay his tax liability and along with the recent sell-off this has seen the stock price drop to very attractive levels. Read more here.
I would much rather have my money invested in ANZ shares than sitting in one of its high interest savings accounts. With this banking giant’s shares currently offering investors a fully franked 6% dividend, the bank also looks to be in a position to increase its dividend in FY 2019 thanks to cost saving opportunities, out of cycle rate hikes, and its exposure to a solid performing business lending market.
Whilst I cannot tell you if 2019 with be positive or negative for the Australian
market, I can tell you that over the long term average gains are around 10%, so
it is worth taking the risk.
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