While most Aussie investors were disappointed with the performance of their portfolios last year, things could have been a whole lot worse.
After all, the price of oil and various other commodities collapsed and unemployment remained stubbornly high. Despite this, the ASX still returned 1% plus dividends which, it could be argued, was not such a bad result given the unfavourable economic circumtances.
So, with there being the potential for a better year this year, now could be the time to invest in shares. Here are three high quality stocks that could be worth buying right now.
CSL Limited
CSL Limited's (ASX: CSL) growth in shareholder payouts over the last 10 years has been hugely impressive. Indeed, the pharmaceutical play has been very generous when it comes to dividends, with dividends per share increasing at an annualised rate of 22.9% during the period. This is above and beyond the majority of ASX stocks and provides a clear indicator of just how much CSL's profitability has improved during that time.
However, the company's share price growth has been astounding (its shares are up 790% in the last 10 years) and, as such, it yields just 1.6%. So, while not an income play right now, CSL's profitability clearly remains exceptionally strong. This looks set to continue with the company's price to earnings growth (PEG) ratio of 1.54 highlighting that strong growth is on offer at a reasonable price. As such, CSL could be worth buying at the present time.
Woodside Petroleum Limited
As expected, Woodside Petroleum Limited (ASX: WPL) recently announced a cut in capital expenditure moving forward, which is in direct response to the falling oil price. Clearly, the oil sector remains highly volatile and, with Woodside having a beta of 1.11, this means that its share price should (in theory) fluctuate to a greater extent than the wider index in future.
Of course, this relative volatility is not necessarily a bad thing. Woodside's focus on increasing its market share and taking advantage of its strong financial position means that, even if there is further short term pain and volatility, that it could deliver excellent share price performance over the medium to long term.
And, with Woodside having a great track record of increasing its bottom line (it has risen at an annualised rate of return of 10.2% over the last 10 years), buying a slice of it now could prove to be a sound move.
Scentre Group Ltd
Of course, falling resources prices are not good news for the wider Aussie economy, with the level of consumer spending being dependent upon its future prospects. However, resilient sales figures and the expectation of continued low rates have kept investor sentiment in Scentre Group Ltd (ASX: SCG) relatively buoyant, with its shares being up 4% year-to-date.
Looking ahead, there could be more excellent performance to come. That's because Scentre continues to trade at a discount to the wider real estate sector, with it having a price to book (P/B) ratio of 1.04, versus 1.15 for the sector. As such, it could see its share price continue to rise as it narrows the current valuation gap.
And, while the Aussie economy could face further challenges, the prospect of an interest rate cut is likely to keep investor sentiment in Scentre relatively strong. As a result, it could be worth buying at the present time.
