As we approach 2015, many share investors will be setting some goals for the ensuing year.
Maybe you want more dividend income, growth potential or a little bit of both?
Here are three companies which offer all those things, at a reasonable price.
Dividend Income
Coca-Cola Amatil Ltd (ASX: CCL) is the bottler and distributor of Coca-Cola products to Australia and five neighbouring countries. It also sells and distributes Beam Global premium spirits. Throughout 2014 its share price has been unable to beat the market, as intense competition from rival beverage giant Schweppes and the two supermarket giants, Coles and Woolies, weighed on profits.
However, CEO Alison Watkins is targeting a return to sustainable earnings per share growth in the near-term and with an added investment from parent The Coca-Cola Company, it appears brighter days are ahead. In the coming year, it is forecast to pay a 4.5% partially franked dividend.
Growth
Although Australia's leading second-hand goods dealer and provider of payday loans, Cash Converters International Ltd (ASX: CCV), is often considered a growth stock, it also pays a handsome dividend yield of 3.1% fully franked. Like Coca-Cola Amatil, Cash Converters' shareholders have endured a turbulent ride in recent times, which has afforded investors a buying opportunity.
Cash Converters has now moved past legislative changes to fees on small loans which stunted its share price growth. At the company's AGM earlier this week, management noted first quarter revenue was up 26% and expected strong momentum to carry into the busy Christmas period.
Growth + Income
Mid-cap law firm Slater & Gordon Limited (ASX: SGH) is a name Australians know and trust for quality of service. Indeed, the group controls over 25% of Australia's personal injury market and holds great promise moving forward. The company pays a 1.5% fully franked dividend and is rapidly growing in the UK market. In 2015 it expects to draw 45% of revenue from the foreign market yet currently holds little more than a 5% market share.
Buy, Hold, or Sell?
At today's prices, I think all three companies hold promise moving forward and have already positioned my own portfolio to benefit from their long-term growth prospects and reliable dividends (see my disclosure below). However, leading into 2015 there's another ASX stock I think every Aussie investor should buy before these three…
