Australia Markets close in 5 hrs 2 mins

Where to invest $1000 today

Matthew Donald
Where to invest

Investing in ASX shares is even more attractive with interest rates at record lows and potentially heading lower. I believe investing $1,000 into each of the following ASX shares will help you earn increasing income and deliver capital growth.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This exchange-traded fund (ETF) provides geographic diversification to your portfolio and exposure to some of the largest tech companies in the United States (US). Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Facebook (NASDAQ: FB) are just some of the tech giants that make up the fund.

It has delivered a return after fees of 40% in the past 12 months and pays a dividend yield of 2.2%. The other benefit is you can buy and sell it on the ASX through your broker and not have to deal with the complexity of foreign exchange.

Transurban Group (ASX: TCL)

Transurban is the owner of toll roads in Australia, the US and Canada. The group has been consistently lifting its distribution because of the cash generated from the toll roads. Pleasingly, in the past year the Transurban share price has increased 31%.

People need to use the roads because it’s the quickest way to travel. A concern that investors may have is the amount of debt the group has, however, in an environment of low interest rates, having debt to expand operations makes a lot of sense if the cash flow covers the repayments. The dividend yield on offer is 3.86% and the group also offers defensive characteristics.

REA Group Limited (ASX: REA)

You may be familiar with REA group when searching for properties to buy, sell or rent using realestate.com.au. The company has delivered impressive growth for shareholders over the past 12 months, with shares up 51%. REA Group has businesses in Australia, Asia and North America.

Pleasingly, REA Group performed well over the past 12 months. Revenue is up 8%, net profit up 6%, dividend per share is up 8% and earnings per share is up 6%. This growth came despite difficult domestic market conditions. However, the group stands to benefit from house prices in the domestic market rebounding towards the second half of calendar 2019, and they have continued to rebound in early calendar year 2020.

The group’s geographic diversification is helping the company deliver growth in times of challenging conditions, which is reflected in the growth of its earnings in FY19. With a recovery in the domestic property market and continued growth in international markets, I suspect top and bottom line earnings will soar.

Foolish takeaway

Keeping cash stashed away in the bank is chewing up your capital in real terms, with interest rates not even keeping up with inflation in most savings accounts. These 3 ASX shares could help your wealth in terms of growth, income and diversification.

The post Where to invest $1000 today appeared first on Motley Fool Australia.

For more income options, don't miss the report below.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

More reading

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and Transurban Group. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020