Woolworths Limited
Even though the cut in interest rates has raised expectations among Aussie investors regarding the future direction of the economy, it remains a highly uncertain period. That's why relatively stable stocks such as Woolworths Limited (ASX: WOW) could perform well in future, since it has an enviable track record of bottom line growth.
For example, over the last five years Woolworths has been able to increase its earnings at an annualised rate of 5.5%, which is impressive. And, looking ahead, its forecast growth rate of 3% per annum over the next two years could cause investor sentiment to improve should falling interest rates fail to stimulate the Aussie economy. As such, Woolworths could be worth buying at the present time for its consistency and relatively defensive qualities.
Australia and New Zealand Banking Group
Results released last week by Australia and New Zealand Banking Group (ASX: ANZ) were somewhat disappointing and led to its share price being weaker.
Indeed, ANZ reported that it is anticipating a tougher environment in 2015, with key businesses driving its move into Asia being hit by falling commodity prices and a decline in trading revenue set to hold back progress this year.
Still, its cash profits were 3.5% up on the first quarter of the previous year and, looking ahead, ANZ could be subject to an upward rerating to its valuation. For example, it has a price to earnings (P/E) ratio of just 13.1 which, when you consider that the ASX has a P/E ratio of 16, shows that ANZ offers good value for money and could be worth buying as a result.
Macquarie Group Ltd
With interest on cash balances now being incredibly low, it is of little surprise that higher yield stocks such as Macquarie Group Ltd (ASX: MQG) are seeing investor demand for them increase.
Of course, Macquarie has a great track record of dividend per share growth, with its shareholder payouts having risen at an annualised rate of 15.6% over the last five years. And, with dividends forecast to rise by a further 5.5% in the next financial year, Macquarie is set to yield a very enticing 4.6% over the next 12 months.
As such, investor sentiment could continue to surge and push Macquarie's share price even higher during the course of 2015. As a result, it could be worth adding a slice of Macquarie to your portfolio.
