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Where I would spend $10,000 today on ASX shares

Sebastian Bowen
Buy Shares

The ASX continues to show softness this week. The S&P/ASX 200 (INDEXASX: XJO) is down 0.17% or 10 points at the time of writing to 7,010.

We still seem to be a ways away from the all-time high of 7,132.7 we saw in mid-January – and that leads me to think, in turn, that today might be a good time to deploy some additional funds into the markets today.

Here are three ASX shares that I consider worthy of an investment in today’s market.

Coles Group Ltd (ASX: COL)

I think the consumer staples/grocery sector is a prudent one to be invested in, in this stage of the economic cycle and Coles shares are a fantastic candidate. Although the fundamentals of Coles’ arch-rival Woolworths Group Ltd (ASX: WOW) are slightly stronger, I’ve chosen Coles for its far more attractive share price today. Woolies’ shares are currently trading on nearly 38 times earnings, whilst Coles’ are at a far more reasonable (in my opinion) 21.

Coles’ plans to cut costs through supply-chain efficiencies and automation are impressive and set the company up well to expand its earnings and dividends in the 2020s in my view.

SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)

In a similar vein, I think the recent pull-back in the ASX translates into a great time to pick up shares of this well-diversified income exchange traded fund (ETF). This fund holds a basket of top-yielding ASX shares that are also screened for ‘dividend trap’ characteristics. Some of its largest holdings currently include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES).

With an average earnings multiple of 15.46 and trailing yield of 5.72%, I think this ETF is another top buy in today’s market.

Australia and New Zealand Banking Group (ASX: ANZ)

In my opinion, ANZ is the best value for money for a ‘big four’ ASX bank stock today. ANZ shares are currently going for $25.97 (at the time of writing), which gives any new investors a trailing dividend yield of 6.16%, which also comes 70% franked.

Although there are a raft of issues facing the banking sector right now (low interest rates being one), I think grabbing ANZ shares for the same price they were available for in March 2010 today is a pretty good value deal. A 6.16% yield is probably more than triple what an ANZ term deposit will pay you these days as well, so I think you could do a lot worse than this banking giant.

The post Where I would spend $10,000 today on ASX shares appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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