Most Aussie investors are probably feeling pretty fed up with the performance of the ASX during 2014. Indeed, it's up 2.2% since the turn of the year and, although dividends mean the total return is much higher, it's still a lot less than 2013's 14% gain.
However, a number of high-quality stocks have beaten the ASX in 2014 and, more importantly, could continue to do so.
Here are three prime examples, all of which could give your portfolio a boost in 2014-15.
Amcor Limited
Although packaging company, Amcor Limited (ASX: AMC), is due to see its bottom line decline over the next couple of years, shares in the company have risen by 10% since the turn of the year as investors look at long term, rather than short term, potential.
Indeed, Amcor appears to have very bright longer term prospects as it seeks to expand in emerging markets. Certainly, developed markets are set to continue to play a key role in its future strategy, but with over 30% of revenue now being generated from developing nations, Amcor could tap into strong growth rates in future years.
As such, the market seems to be comfortable paying a premium for shares in Amcor, with a P/E ratio of 15.7 seemingly offering good value for money for such a bright future.
Ramsay Health Care Limited
It's perhaps of little surprise that Ramsay Health Care Limited (ASX: RHC) has beaten the performance of the ASX in 2014. After all, private hospitals tend to deliver relatively consistent results come economic rain or shine and so the disappointing performance of the ASX in 2014 has had little impact on demand for Ramsay's shares, which are now up 20% since the turn of the year.
Furthermore, Ramsay is one of the most reliable dividend-growers in the ASX. Over the last ten years it has increased dividends per share at an annualised rate of 17.4% and, over the next two years, is expected to raise them by 15.8% per annum. This means that while shares in the company currently yield just 1.8% (fully franked), they could be yielding 2.2% and rising in FY 2016.
Scentre Group Ltd
Shares in Scentre Group Ltd (ASX: SCG) have risen by 13% since they listed in June 2014, with the Australia-focused part of Westfield shopping centres having the potential to make further gains moving forward.
Clearly, this is unlikely to be as a result of strong earnings growth, with Scentre expected to increase its bottom line by around 5.1% per annum over the next two years. While this is roughly in-line with the growth rate of the wider market, it is unlikely to significantly increase demand for shares in the company.
However, with a 5.8% yield (unfranked) and a price to book ratio of just 1, Scentre seems to offer bond-like income reliability combined with the scope for an increase to its current valuation. As a result, its outperformance of the ASX since listing could continue through the remainder of 2014 and into 2015.
