An ASX investment portfolio is really a labour of love. It's likely that once you have started it, you will spend years adding to it, trimming it, pruning, toning and refining it. In a way, your portfolio is almost a reflection of who you are as an investor (or even as a person!).
In all seriousness, many good investing portfolios have a 'core' – a solid foundation of select shares that you can rely on as a bedrock of stability, growth and perhaps dividend income. Having such a core in your portfolio can also help lend confidence if you want to take some moonshot 'high-risk/high-reward' bets, for example.
Here are 3 ASX shares that I think would be perfect to build an ASX portfolio around.
CSL Limited (ASX: CSL)
CSL is one of the best performing ASX blue-chip shares in recent memory. This healthcare giant boasts a formidable operation in the blood plasma industry with an unmatched R&D program to boot. In addition, the company's vaccine division is another standout performer and has even been called on by government in times of national concern (such as the 2009 swine flu scare).
I expect CSL to remain a leader in the Aussie healthcare industry as well as grow into a globally dominant heathcare giant over the next decade. Thus, it's a share I would be very happy to have at the centre of my ASX portfolio.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
'Soul Patts' has been called the Berkshire Hathaway of the ASX due to its mini-conglomerate structure and its diverse stable of underlying holdings. These currently include TPG Telecom Ltd (ASX: TPM), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW) amongst others.
As one SOL share is really an investment in a variety of different investments, I think this company would make a perfect 'core' stock to have in your portfolio. Soul Patts is also one of the few ASX companies that has increased its dividend every year of this century so far – which gives me a lot of confidence as an investor.
SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)
A final candidate is this exchange traded fund (ETF). Dividend income is a valuable part of any investing portfolio as it can significantly help boost your returns – especially during a bear market when stock prices might be falling.
This ETF invests in a basket of 42 of the the highest-yielding stocks on the ASX. These currently include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES). From these holdings, it was able to offer a trailing 5.8% dividend yield in 2019 – which can also give you an ongoing stream of cash to plough back into your portfolio as you see fit. Thus, I think this ETF would be a useful stock to hold in your portfolio long-term.
