Plenty of the ASX's leading shares have performed strongly in 2024, with their share prices rising substantially, so I'm not seeing many compelling options at good value right now.
However, there are a few names that are sticking out to me, particularly in the ASX property share space.
I like to regularly invest, putting my money where I see appealing potential returns on offer.
While I already own the below two ASX shares in my portfolio, I'm planning to buy plenty more of them in 2024.
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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I think Soul Patts shares can form the bedrock of an Aussie investor's portfolio because of the long-term success the business has had. It's an investment house that is invested in various industries, including telecommunications, resources, building products, property, ASX large-cap shares, ASX small-cap shares and credit.
The business aims to beat the ASX share market over the long term, and it has largely succeeded.
In the last five years, the average total shareholder return (TSR) of Soul Patts shares has been 10.1% compared to 8.4% per annum for the All Ordinaries Accumulation Index (ASX: XAOA). Over the past twenty years, Soul Patts shares' TSR has been 12% compared to 8.7% per annum for the All Ords Accumulation Index. Past (out)performance is not a guarantee of future performance, though.
The ASX share regularly makes new investments, with some of its latest moves being in agriculture and electrification. I think the expansion of its portfolio and growth of existing investments can help grow the underlying value of the portfolio and boost cash flow over time.
One of the things that appeals to me is that the annual dividend per share has grown every year since 2000. It currently offers a grossed-up dividend yield of 3.9%.
Brickworks Limited (ASX: BKW)
Australia's leading brickmaker has been facing difficulties amid weak construction demand. Earlier this week, it announced an impairment charge against its Australian masonry business and its US brickmaking business.
But, I view the 15% decline over the past six months as an opportunity to buy a great business at a more appealing price. I believe demand for Brickworks' products will recover, though I'm not expecting a quick turnaround.
What I'm particularly excited about is the ASX share's significant balance sheet.
It has a 26.1% holding of Soul Patts shares, which is currently worth approximately $3.16 billion.
The ASX share also has $1.95 billion of assets relating to the net tangible assets (NTA) of property trusts. A large majority of that relates to high-quality industrial property warehouses, with a significant pipeline of future work that can unlock further rental profit streams and increase the value of the land once the buildings are completed.
I think there is a significant discount between the Brickworks share price and its underlying assets, even if we ignore any value the building products operations may have. I think this could be my next investment.
As a bonus, the company hasn't cut its annual dividend for almost 50 years. At the current Brickworks share price, it has a grossed-up dividend yield of 3.7%.
