Rio Tinto Limited
Even though the iron ore price has declined considerably in recent months, Rio Tinto Limited (ASX: RIO) has increased its iron ore production in the last year which, in my view, seems to make complete sense.
That's because it allows the company to continue its domination of the market and to maintain market share at a time when many of its smaller rivals are struggling to turn a profit. As a result, Rio Tinto could, in the long run, prove to be a winner from the fall in the price of iron ore if it can emerge from it in a stronger position than it was in previously.
And, in the meantime, a fully franked yield of 4.2% is hugely appealing and, with dividends per share forecast to grow at an annualised rate of 12% over the next two years, it could even prove to be a top notch income play, too.
Commonwealth Bank of Australia
Although Commonwealth Bank of Australia (ASX: CBA) trades on a fairly rich rating, it still could be a top performer this year. For example, while it has a price to book (P/B) ratio of 2.9, it also has an excellent yield and in-line growth prospects that could lead to further improvements in investor sentiment that have pushed the bank's share price 17% higher in the last year alone.
For example, CBA currently yields a fully franked 4.7% and is forecast to increase earnings by 6.2% per annum over the next two years. This, alongside the bank's excellent track record of earnings and dividend growth (they have grown at an annualised rate of 6.4% and 8.2% respectively over the last 10 years) means that investors in CBA should have a relatively high degree of confidence in its long-term future. As a result, and with the outlook for the ASX being relatively uncertain, CBA's shares could become even more in demand moving forward, helping to push them to fresh highs.
Scentre Group Ltd
Looking ahead, it seems as though there is a good chance that the RBA will decrease interest rates during the course of 2015. And, while it would be bad news for savers, it is likely to be great news for consumers, since the cost of borrowing could plummet to fresh lows.
That's a major reason why I'm bullish on the prospects for shopping centre operator, Scentre Group Ltd (ASX: SCG), since increased consumer spending would help it to grow its bottom line, but also improve investor sentiment at the same time. This could help to push its share price even higher and, as the gain of 26% in the last year shows, momentum is with Scentre at the present time.
Furthermore, with a yield of 5.2%, a lower interest rate could also increase demand for Scentre's income prospects. This could act as a further catalyst on the company's share price as we move through 2015.
Of course, finding the best stocks for 2015 is a tough ask – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
