Looking at interest rates of just 2.25%, no doubt many Australians are seriously considering buying shares for both a dividend income and the chance of capital gains.
To make it a little easier for you, here are three top companies which deserve a spot on your watchlist…
- ResMed Inc. (CHESS) (ASX: RMD) is a healthcare company involved in the manufacturing and distribution of innovative medical products for individuals with respiratory disorders such as sleep apnoea. Listed on both the Australian Stock Exchange (ASX) and New York Stock Exchange (NYSE), ResMed is a truly global company, servicing 100 countries worldwide. It believes around 20% of the adult population suffers from sleep-disordered breathing, yet awareness of the issue remains low. ResMed trades on a forward prices to earnings of 28 and a dividend yield of 1.5%.
- Coca-Cola Amatil Ltd (ASX: CCL) had a rough year in 2014 but has already kicked off 2015 in a stronger position. As a result, Australia's distributor of Coca-Cola and Beam branded products still looks cheap at under $10 per share. Whilst risks persist within the Indonesian market and SPC Ardmona business, it won't have to achieve much growth to make its current price worthwhile. At current prices it has a forecast 4.2% dividend yield.
- Credit Corp Group Limited (ASX: CCP) is Australia's largest receivables management (debt collection) firm. The $500 million company has witnessed its share price jump from around $2.50 to $11.80 in just five years. Although growth may be more modest in coming years, it certainly isn't lacking in potential. Especially with a US expansion underway. It pays a 3.5% fully franked dividend.
A better stock idea than Telstra…
