It has been a difficult time for investors over the past two months. With major share price volatility and the share prices of many companies on the S&P/ASX 200 Index (ASX: XJO) suffering from sharp corrections, some investors may be left hesitant about investing.
However, I feel it is important to keep in mind that share investing is very much a long-term pursuit and major share market corrections do occur from time to time.
I believe that companies with a high degree of market diversification are better positioned than most to ride out the current volatility.
So, I am attracted to the following 3 ASX shares because all 3 are highly diversified with strong balance sheets and highly-skilled management teams. In addition, these shares provide investors with attractive fully-franked dividends.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is a highly diversified business with operations in general retail segments including general merchandise and office supplies, as well as industrial segments with operations in energy and fertilisers, and industrial and safety products.
Diversification across a broad spectrum of the Australian economy is Wesfarmers' core strength, as it provides a buffer to any industry-specific challenges that could potentially negatively impact any of its subsidiaries.
Wesfarmers' Bunnings division continues to benefit from improved supply chain efficiency and store technology upgrades and Officeworks continues to grow solidly, driven by new and expanded product ranges.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
'Soul Patts' has strong market diversification across a broad spectrum of industries, ranging from pharmacies and telecommunications to mining and building products.
The company also cleverly keeps significant cash on its balance sheet, which places it in an ideal position to capitalise on any worthwhile investment opportunities that may suddenly arise.
Soul Patts funds its dividends from its net regular cashflow, placing the company in a position to increase its dividend for the interim and full-year result in FY20.
Brickworks Limited (ASX: BKW)
Brickworks has been one of the most stable and consistently performing businesses on the ASX over the past few decades, driven by its diversification across several divisions.
The company's Building Products division manufactures and distributes a range of bricks and other masonry products. It also owns a significant holding of Soul Patts, which provides a good income stream to Brickworks in the form of dividends.
Brickworks also owns 50% of an industrial property trust with Goodman Group (ASX: GMG) which builds and operates a range of property for industrial businesses.
