SOL and Goodman Group: 2 ASX shares to dig into

The Washington H Soul Pattinson & Company Ltd (ASX:SOL) share price is down 0.4% since the start of 2024. It's probably worth asking, 'is the SOL share price cheap?'

The Washington H Soul Pattinson & Company Ltd (ASX:SOL) share price is down 0.4% since the start of 2024. The Goodman Group (ASX:GMG) share price is tracking 68.2% off its 52-week lows.

SOL share price in focus

Washington H. Soul Pattinson (WHSP) is a diversified investment company with a portfolio of assets across a range of industries and asset classes.

Some of SOL’s largest holdings include stakes in other well-known publicly listed companies such as TPG Telecom (ASX: TPG), New Hope Group (ASX: NHC) and a cross-shareholding in Brickworks (ASX: BKW).

SOL’s aim is to deliver superior returns to its shareholders by creating capital growth and steadily increasing dividends as a holding company. As the second-oldest publicly listed company on the ASX it has developed a strong track record of doing just that. In fact, SOL has never missed a dividend payment since listing in 1903! It could best be thought of as a family-run LIC with directors that are financially aligned with shareholders.

GMG shares

Goodman Group is a global integrated property group founded in 1989 that owns, develops and manages real estate assets across several continents.

Main operational hubs include markets such as Australia, New Zealand, the UK, Japan, the US, and Brazil, making Goodman the largest ASX-listed property group in 2024.

SOL share price valuation

One way to have a ‘quick read’ of where the SOL share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.

Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Washington H Soul Pattinson & Company Ltd shares have a dividend yield of around 2.90%, compared to its 5-year average of 2.44%. In other words, SOL shares are trading higher than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends are growing, or it could mean the share price is falling, or both. In the case of SOL, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.

GMG is offering a historical dividend yield of around 0.82%, which compares to its 5-year average of 1.28%. Of course, this is just one of many ways you could put a value on GMG shares. The Rask websites offer free online investing courses, created by analysts explaining valuation methods like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s important to look at multiple methods when you’re trying to value the GMG share price.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Better investing starts here.

Want to level-up your analytical skills and investing insights but don’t know where to start? Join 50,000 Australian investors on our mailing list and we’ll send you our favourite podcasts, courses, resources and investment articles every Sunday morning. Grab a coffee and let Owen and the team bring you the best  insights.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

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

Skip to content