Do you want to be richer in 2015? Here's the secret: invest regularly.
Investing regularly is one of the most important steps for a richer retirement. Regular contributions and reinvested dividends will help to compound returns over the long term for a richer tomorrow.
Christmas is the perfect time to start and for investors who love companies that offer great value here are four of the best stocking stuffers to buy today.
FlexiGroup Limited (ASX: FXL) P/E: 15.3, Dividend Yield: 5.6%
The falling oil price has been the latest excuse for investors to dump consumer finance focused FlexiGroup. The company is trading around two-year lows, but has proven itself a stable performer, reliably growing its dividends over the last few years.
The company looks ideal for value focused investors, with a stable outlook and strong cash flows. FlexiGroup can be bought today for a price-to earnings (p/e) ratio of just 15.3 on trailing FY14 earnings, or 13 on FY13 earnings. With FY15 NPAT still expected to grow by 7% and a 5.6% dividend yield, the company is a great Christmas addition.
Santos Ltd (ASX: STO) P/E: 17.3
The inclusion of Santos flies in the face of falling oil prices, but with good reason. The company's share price has almost halved in the last 12 months, yet by 2020 Santos' production is expected to grow by as much as 73%, from the 52 million barrels of oil equivalend (mmobe) forecast for FY14, to between 80 and 90 mmobe.
This will be heavily biased towards LNG production which, although tied to oil prices, will retain strong demand from the biggest target markets of Japan, Korea and China. Manage your risk by buying a smaller percentage of shares today for a brighter tomorrow.
Lifehealthcare Group Ltd (ASX: LHC) P/E: 3.9, Dividend Yield: 3.7%
Lifehealthcare Group stands out at a time when most healthcare stocks look expensive relative to their current earnings. Lifehealthcare is a niche medical equipment sales company with a successful history of growth. Revenue in FY14 grew 13.4%, with an 8.4% increase in EBITDA.
The company operates with gross margins over 50% and early results for FY15 point to another year of successful growth. Trading for less than four times FY14 earnings, Lifehealthcare makes a great Christmas treat.
Cover-More Group Ltd (ASX: CVO) P/E: 21 (approximate)
With a price-to-earnings ratio of approximately 21, travel-insurance provider Cover-More Group doesn't looks like an instant bargain, but a look at the company's growth prospects would suggest otherwise.
Cover-More is working quickly to stitch up deals with travel providers and retailers, recently announcing deals with insurance company Insurance Australia Group Ltd (ASX: IAG) and travel company Helloworld Limited (ASX: HLO). This on top of its work with Flight Centre Travel Group Ltd (ASX: FLT).
The company is also targeting the rapidly growing market of China and has highlighted EBITDA growth of up to 9.4% for FY15.
A small investment into each of these great value companies today may keep your portfolio growing into 2015 and beyond.
