Origin Energy Ltd
Having fallen by 15% in the last three months, shares in Origin Energy Ltd (ASX: ORG) now offer investors an even more appealing yield. In fact, they now yield 4.1% which, with interest rates at just 2.25%, offers investors the opportunity to earn an even bigger income from their investment.
Furthermore, Origin is forecast to increase dividends per share at an annualised rate of 9.4% over the next two years and this means that it could be yielding as much as 5% in financial year 2016. As such, it could become an even more appealing income play and this may have the effect of improving market sentiment, thereby pushing Origin's share price much higher.
And, with Origin's dividends forecast to be covered 1.7 times by profit next year, it appears to be a relatively safe dividend play that could be worth buying at the present time.
Fortescue Metals Group Limited
Shares in Fortescue Metals Group Limited (ASX: FMG) are firmer this week after the company's CEO, Nev Power, claimed that Fortescue is a bid target after its savage share price fall. He could have a very good point, since Fortescue now trades on a highly appealing valuation with it having a price to book (P/B) ratio of just 1.
Furthermore, Fortescue has an excellent track record when it comes to increasing its cash flow. For example, over the last 10 years it has been able to increase cash flow at an annualised rate of 62.6%, which is hugely impressive and shows that while it is enduring a challenging period at the present time, it remains an enticing business that could perform surprisingly well during the remainder of the year.
Wesfarmers Ltd
One of Wesfarmers Ltd's (ASX: WES) main appeals is its supreme track record when it comes to top line growth. For example, it has been able to increase sales at an annualised rate of 11.3% during the last 10 years, which when you consider that we have endured the effects of the global financial crisis is a very impressive result.
And, with the Aussie economy's future looking uncertain enough to prompt a cut in interest rates to just 2.25%, investors may begin to seek out stocks that are perceived as being more reliable, of which Wesfarmers is a prime example.
Furthermore, Wesfarmers also continues to offer good value for money and could make for a strong buy at the present time. In fact, it has a price to sales (P/S) ratio of just 0.85 (versus 1.56 for the ASX), which indicates that its share price could move considerably higher during the course of the year.
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.
