Macquarie Group Ltd
Although Macquarie Group Ltd's (ASX: MQG) dividends in the current year are expected to be flat, it is forecast to increase them by as much as 4% in financial year 2016. That's at least partly because the wealth management company is enjoying strong growth in profitability, with it set to deliver double-digit growth in its bottom line over the medium term.
So, while it currently yields an impressive 4.6%, Macquarie could be yielding as much as 4.8% next year. And, with the prospect of further interest rate cuts on the horizon, it could benefit from an upsurge in investor sentiment, not only in its own stock but also in the wider index. As a result, it offers a high yield and great future prospects and seems to be worth buying right now.
QBE Insurance Group Ltd
Recent news flow for QBE Insurance Group Ltd (ASX: QBE) has generally been positive, with the insurer confirming the disposal of multiple non-core assets, improving its financial standing via a new debt issue and capital raising, while confirming that it is on-track to meet previous guidance.
Despite this, QBE's share price has disappointed, with it being up just 1% in the last three months. However, this provides investors with an opportunity to buy a great income play at a very appealing price.
For example, QBE currently yields an impressive 4.5% and yet trades on a price to earnings growth (PEG) ratio of just 0.1. This indicates that it is not only a very appealing income stock, but also offers growth potential at a very reasonable price. As such, it could prove to be a top notch growth and dividend play in 2015 and beyond.
Transurban Group
Shares in Transurban Group (ASX: TCL) were slightly weaker this week, as the toll road operator released first half results that showed it made a net loss of $354 million in the first half of the year. This was mainly due to the costs of the acquisitions undertaken by the company in recent months, including the $7bn purchase of Queensland Motorways' toll road portfolio last year.
Still, Transurban has raised dividend guidance and is expected to yield a very appealing 4% in the current year. This, combined with its relatively steady underlying profitability plus the potential for further growth as a lower interest rate begins to boost the wider Aussie economy means that the company is set to deliver upbeat earnings growth figures over the medium to long term.
In fact, Transurban's bottom line is forecast to rise by 21.6% per annum over the next two years and, as such, it could be a strong performer moving forward.
