Coca-Cola Amatil Ltd
Shares in Coca-Cola Amatil Ltd (ASX: CCL) have been firmer this week despite the beverages company reporting a 25% slide in underlying profitability and a 31% cut in its dividend.
However, investors chose to instead focus on comments made by the company regarding future growth prospects, with Coca-Cola Amatil now expecting growth in the mid-single digits from 2015 onwards. Indeed, the cost and revenue initiatives undertaken by the firm look set to finally have a positive impact on its bottom line.
And, despite the dividend cut, Coca-Cola Amatil still yields a very appealing and partially franked 4%. With a bright future ahead of it, it could prove to be a great income stock and, as such, seems to be worth buying at the present time.
Origin Energy Ltd
Also reporting disappointing numbers this week was Origin Energy Ltd (ASX:ORG), with it seeing a 9% fall in underlying profit for the first half of the year. The main reason is a weak oil price and as a result Origin will now focus on cutting costs as it seeks to reduce the impact of a falling top line on its bottom line.
In addition, Origin will seek to delay capital spending and is considering the sale of the Australia Pacific liquefied natural gas (APLNG) pipeline that runs from its gas fields to the LNG plant, in order to raise cash.
Despite this, Origin still has great potential. It is preparing to start exporting from the APLNG project and could prove to be a strong income play. That's because it currently yields 3.9% and, with dividends forecast to rise at an annualised rate of 9.4% over the next two years, it could be worth buying right now.
Commonwealth Bank of Australia
Also offering bright income prospects is Commonwealth Bank of Australia (ASX: CBA). That's because, as well as offering a fully franked yield of 4.6%, it is forecast to increase dividends per share at an annualised rate of 6.2% over the next two years. And, with inflation being just 1.7% at the present time, that works out as a sizeable real terms increase in shareholder payouts over the next couple of years.
In addition, CBA also seems to have strong momentum behind it, with its share price having risen by 20% in the last year alone. As such, upbeat investor sentiment could push its shares higher and mean that it posts capital gains to go alongside a great income.
