Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

2 ASX shares I’d buy today with $1,000

If I were investing today with $1,000 then I have two ASX shares in mind, depending if I were going for growth or income. One being Pushpay Holdings Ltd (ASX:PPH).

If I were investing today with $1,000 then I have two ASX shares in mind, depending if I were going for growth or income.

The market is rebounding hard after a few positive quick-fire updates about three different COVID-19 vaccines. But there are some ASX shares I still believe are good value for the long term in my opinion:

Growth pick: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a business involved in offering technology to help US large and medium churches receive digital donations. It has a community app that allows the church to connect with its congregation. One part of the app is that it offers a livestreaming service, which is handy in this era of COVID-19.

For me, the FY20 result was extremely impressive. Its operating revenue increased by 53% to US$85.6 million and total revenue rose 51% to US$86.6 million. Total processing volume went up 48% to US$3.2 billion. It’s expecting more volume as it wins more churches and more people adopt Pushpay’s technology.

The gross profit margin improved from 65% to 68%. As a percentage of operating revenue, the EBITDAF margin (EBITDA explained) grew from 17% to 31%. Pushpay reported that its EBITDAF grew by 177% to US$26.7 million.

Net profit before tax grew 121% to US$18.8 million and net profit after tax (NPAT) went up by 107% to US$13.4 million. The NPAT margin improved from 12% to 16%. Operating cashflow went up by 203% to US$27 million.

I think there is plenty of market share growth, profit margin growth, revenue growth and profit growth for Pushpay. The Pushpay share price has been falling back in recent weeks, so I think this could be an opportunistic time to buy.

Dividend pick: Brickworks Limited (ASX: BKW)

Many ASX dividend shares are highly prized at the moment with how low interest rates are. Brickworks could be a good business to buy for dividends. It hasn’t cut its dividend in over four decades, so it can provide a lot of certainty.

Brickworks funds its dividend purely from the distributions from its 50% stake in a high-quality industrial property trust and from the dividends from its investment in investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Upcoming completions of large warehouses for Amazon and Coles Group Ltd (ASX: COL)

The Australian construction product side of the business is bouncing back as COVID-19 impacts go away, though the US construction side of things is suffering because of the surging number of cases there.

At the pre-open Brickworks share price of $20.22, it has a dividend yield of 4.2% including the franking credits.

Summary thoughts

Both of these businesses are good ASX shares and could be good long term buys. Of the two, whilst I really like dividends, I think I’d go for Pushpay first because I think it has excellent long term growth potential. There are also other ASX growth shares I’d also like to add to my portfolio like A2 Milk Company Ltd (ASX: A2M).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of WHSP.
Skip to content