As ever, Aussie investors are looking for a mix of income, value and growth potential. Certainly, dividends are likely to become more popular (especially if interest rates are cut), but that doesn't mean that buying stocks offering growth at a reasonable price is any less appealing.
In fact, the best performing shares this year could prove to be the ones that offer that potent mix and here are three prime examples that seem to do just that. As a result, they could be worth buying right now.
Amcor Limited
With a yield of 3.6%, Amcor Limited (ASX: AMC) offers a much better income return than can be found on most savings accounts. In addition, the packaging company is forecast to increase dividends per share at an annualised rate of 5.7% over the next two years, which means that Amcor could be yielding as much as 3.8% in financial year 2016.
Furthermore, Amcor has a superb track record of increasing profitability. For example, during the last five years it has managed annualised growth in earnings of 16.5%, which is far higher than for the wider index and gives an insight into the potential that Amcor could offer in the long run.
And, with Amcor trading on a price to sales (P/S) ratio of just 1.42 (versus 2.61 for the wider materials sector), it still seems to offer excellent value for money.
Crown Resorts Ltd
With shares in Crown Resorts Ltd (ASX: CWN) having fallen by 5.5% in the last month, they now offer better value for money. For example, the gaming company now trades on a price to earnings (P/E) ratio of just 13.7, which is considerably lower than that of the wider index (14.9) and also the consumer services sector (17.5). As such, an upward rerating could take place.
In addition, Crown Resorts also offers a partially franked yield of 3.2%, which is forecast to grow to around 3.6% in financial year 2016. And, looking at its bottom line growth over the last five years (during which time it has posted annualised gains in net profit of 17.6%), it seems to be a very appealing growth play.
As a result of this combination of income, growth and value, Crown Resorts could see investor sentiment warm during the course of the year and push its share price higher.
National Australia Bank Ltd.
With National Australia Bank Ltd.'s (ASX: NAB) dividend expected to be covered 1.3 times by profit this year, investors should have more confidence regarding the sustainability of its present 6% yield. And, with dividends set to become an even more important part of shareholders' total returns, NAB could see its share price move upwards as a result of greater demand for its stock.
Of course, NAB also offers good value at its current price level. For example, it trades at a slightly lower P/E ratio than the wider index, with it having a P/E ratio of 14.5 versus 14.9 for the ASX. This means that it could see a rating expansion in the months ahead, as investors seek out reasonable value, high-yielding stocks to combat low interest rates.
Meanwhile, with low interest rates having the potential to boost the Aussie property market still further, NAB could deliver better-than-expected earnings growth moving forward. As such, its shares offer considerable appeal at the present time.
