While a cut in interest rates in 2015 is taken as a given by many investors, there is no guarantee that the RBA will make monetary policy any looser this year.
In fact, it could be the case that rates do not fall and investor sentiment does not receive the stimulus that many had predicted.
Even if rates aren't cut, though, there are still a number of companies with bright prospects and which offer great incomes. So, with that in mind, here are three stocks that could have a great 2015 irrespective of whether interest rates fall or stay where they presently are.
Macquarie Group Ltd
Shares in Macquarie Group Ltd (ASX: MQG) soared by over 5% yesterday as the wealth management group announced that it expects profit for the full-year to March 31 to surge by between 10% and 20%. That's great news for investors, with the company benefitting from improved trading conditions as well as a weaker Aussie dollar.
And, with it being rumoured that Macquarie is seeking around $350 million for the sale of its equipment finance division, it could benefit from a short term boost to its cash flow, too.
Furthermore, looking at the next two years, Macquarie is forecast to deliver impressive earnings per share growth, with the investment bank expected to grow its bottom line at an annualised rate of 10% over the period.
That's a rapid rate of growth and, when you consider that Macquarie trades on a price to earnings (P/E) ratio of 14.3, it seems to offer excellent value for money and could be worth buying at the present time.
Insurance Australia Group Ltd
With there being a considerable amount of uncertainty surrounding the ASX at the present time, less volatile stocks could become more appealing to investors. So, with a beta of 0.5, Insurance Australia Group Ltd (ASX: IAG) could become more in vogue this year – especially since it offers superb income prospects, too.
Indeed, IAG currently yields a whopping (and fully franked) 6.2%, which is considerably higher than the 4.6% yield of the ASX and of the wider insurance sector. As such, demand for its shares could increase as investors seek out high yield, defensive stocks – even though IAG's price to book (P/B) ratio looks relatively high at 2.2 (versus 1.9 for the sector).
Despite this, its defensive merits and high yield could be enough to increase investor sentiment and push IAG's shares higher.
Ramsay Health Care Limited
While its dividends may be fully franked, Ramsay Health Care Limited (ASX: RHC) is certainly not viewed as a desirable income play by many investors. That's understandable, since it currently yields just 1.6%, although over the medium to long term it could become a more realistic income stock.
That's because Ramsay is forecast to increase dividends per share at an annualised rate of 16.2% over the next two years, which means that it could be yielding over 2% next year. And, with its superb record of improving cash flow (it has risen by 14.8% per annum over the last five years) it could become an appealing dividend play over the long term. As such, it could be worth buying now in anticipation of this.
Of course finding the best stocks for the long term is a tough ask – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
