If you’re looking to invest in the Australian stock market, then you’ll want to have a list of the best ASX stocks to buy now to choose from. The ASX is the Australian Securities Exchange, and it’s home to some of the biggest and most well-known companies in Australia so picking from them can be a challenge.
As a country that is rich in natural resources, Australia and its businesses have long been leaders in the mining and energy sectors. In recent years, however, Australian companies have diversified their businesses and are now leaders in a number of industries, including finance, healthcare, and technology.
Top 10 best ASX stocks to buy now
The Australian stock exchange (ASX) is home to a number of large and well-known companies, and below we will take a look at the 10 best ASX listed stocks to buy today in our own humble opinion.
1. BHP Group (ASX: BHP)
BHP Group is a global resources company that is headquartered in Australia. The company is one of the world’s largest producers of iron ore, copper, and coal. BHP is also a major player in the oil and gas industry.
The company has a strong track record of dividend growth, and its shares currently offer a dividend yield of 4.3%. BHP’s share price has declined by around 20% over the past year, which has made the stock more attractive for income-seeking investors. This has been one of the best ASX stocks to buy over extended periods.
2. Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank is one of Australia’s “big four” banks. The company has a well-diversified business, with operations in retail banking, corporate banking, and wealth management.
Commonwealth Bank shares offer a dividend yield of 5.8%, and the bank has a strong track record of dividend growth. The stock is down by around 10% over the past year, which makes it an attractive option for value investors.
3. Telstra Corporation (ASX: TLS)
Telstra is Australia’s largest telecommunications company. The company has a strong market position in both the mobile and fixed-line markets. Telstra also owns Australia’s largest pay-TV business, Foxtel.
Telstra shares offer a dividend yield of 5%, and the company has a long history of paying dividends. Telstra’s share price has declined by around 25% over the past year, which makes it an attractive option for value investors.
4. Westpac Banking Corporation (ASX: WBC)
Westpac is another of Australia’s “big four” banks. The bank has operations in retail banking, corporate banking, and wealth management. Westpac is also one of the country’s leading mortgage lenders.
Westpac shares offer a dividend yield of 6.2%, and the bank has a strong track record of dividend growth. The stock is down by around 15% over the past year, which makes it an attractive option for value investors.
This makes Westpac one of the best ASX dividend stocks to buy, with a solid track record to support its’ place on the list.
5. National Australia Bank (ASX: NAB)
National Australia Bank is the fourth of Australia’s “big four” banks. The bank has operations in retail banking, corporate banking, and wealth management. NAB is also a major player in the country’s mortgage market.
NAB shares offer a dividend yield of 5.7%, and the bank has a strong track record of dividend growth. The stock is down by around 20% over the past year, which makes it an attractive option for value investors.
6. S&P/ASX 200 Index Fund (ASX: XJO)
The S&P/ASX 200 Index Fund is an exchange-traded fund that tracks the performance of Australia’s largest 200 companies by market capitalisation. The fund offers investors a diversified way to gain exposure to the Australian stock market.
The fund currently has a dividend yield of 3%, and its shares are down by around 15% over the past year. This makes the fund an attractive option for income-seeking investors.
Whilst this is technically in our eyes the best ASX ETF rather than an individual stock, it is still a great way to gain access to a wide array of the biggest and best ASX stocks, without being a stock picker.
7. Macquarie Group (ASX: MQG)
Macquarie Group is a global financial services company that is headquartered in Australia. The company has operations in banking, asset management, and markets. Macquarie is also a leading provider of infrastructure financing.
Macquarie shares offer a dividend yield of 3%, and the company has a strong track record of dividend growth. The stock is down by around 10% over the past year, which makes it an attractive option for value investors.
8. Wesfarmers (ASX: WES)
Wesfarmers is a diversified conglomerate with operations in retail, industrial, and chemical businesses. The company’s most well-known brands include Coles supermarket, Bunnings hardware store, and Kmart department store.
Wesfarmers shares offer a dividend yield of 4.2%, and the company has a strong track record of dividend growth. The stock is down by around 25% over the past year, which makes it an attractive option for value investors.
As a diversified company, Wesfarmers continues to earn a place as one of the best ASX stocks to buy.
9. Woodside Petroleum (ASX: WPL)
Woodside Petroleum is Australia’s largest oil and gas producer. The company has operations in Australia, the United States, and Africa. Woodside is also one of the world’s largest LNG producers.
Woodside shares offer a dividend yield of 5%, and the company has a strong track record of dividend growth. The stock is down by around 30% over the past year, which makes it an attractive option for value investors.
10. Afterpay (ASX: APT)
There are many reasons why Afterpay (ASX: APT) is a good stock to invest in including the fact that the company has a strong and growing customer base. It also possesses a robust business model that is based on providing customers with interest-free credit.
This means that Afterpay is able to generate healthy profits, even as it continues to grow its customer base. Finally, Afterpay is led by a strong management team that has a proven track record of successful growth. In summary, Afterpay is a high-quality business with strong growth prospects and represents a attractive opportunity for long-term investors in ASX stocks.
Top ASX stocks summary
These are just 10 of the best ASX listed stocks that investors can buy today but there are many other great companies listed on the ASX that could be well suited to your individual investment goals and objectives.
When it comes to finding the best stocks to buy, doing your own research is essential. This list is not a recommendation to buy any of these stocks, but merely a starting point for your own research. There are many that tend to stick to the largest exchanges, and US stocks, but there is a lot of scope for opportunities in Australia across the various indices.
ASX All Ords and ASX 200
The ASX index is a market capitalization weighted and float-adjusted stock market index of stocks listed on the Australian Securities Exchange. The index is maintained by Standard & Poor’s and currently consists of more than 2000 companies of different sizes, and industries.
The ASX all ords index covers approximately 90% of the Australian equity market by capitalisation and is therefore considered a good indicator of overall market performance. It is also used as the underlying index for a number of exchange-traded funds (ETFs) and other financial products.
The ASX 200 is an index of the top 200 ASX stocks by market cap, and is reviewed quarterly, with changes to the constituents announced two weeks before the end of the quarter.
Best Blue Chip ASX Stocks
Some of the best blue chip ASX stocks to buy now include BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO) and Commonwealth Bank of Australia (ASX: CBA). These companies are all leaders in their respective industries, and they offer investors a great way to diversify their portfolios.
In addition to these blue chip stocks, there are also a number of smaller companies that are listed on the ASX that can offer investors good growth potential. Some of these companies include Afterpay Touch Group (ASX: APT) and Appen Ltd (ASX: APX).
When investing in ASX listed stocks, it’s important to do your research and understand the risks involved. However, if you choose wisely, investing in ASX stocks can be a great way to grow your wealth over the long term.
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