Santos Ltd
Having fallen by 42% in the last year, shares in Santos Ltd (ASX: STO) now offer a relatively appealing yield. In fact, they yield more than the ASX at the present time, since the ASX's yield is 4.2%, while Santos yields 4.4%, with its high yield indicating its shares may be good value.
Furthermore, Santos is forecast to increase dividends per share at an annualised rate of 11.9% over the next two years, and this means that its income prospects could become stronger over the medium term. Certainly, it lacks the stability of other high yield stocks, but for investors who are comfortable with the volatility and uncertain bottom line that Santos is likely to have, then it could prove to be a great medium term investment.
Ramsay Health Care Limited
Results released this week by Ramsay Health Care Limited (ASX: RHC) were positive and showed that Australia's biggest private hospital provider is making encouraging progress. For example, net profit for the first half of the year increased by 21% versus the same period last year, with Ramsay set to spend hundreds of millions of dollars each year increasing capacity, since it believes that the demographic trends are in its favour for the long term.
And, with Ramsay offering growth potential and a defensive business model that is likely to perform well come economic rain or shine, it seems to offer investors the perfect mix of growth and consistency.
Insurance Australia Group Ltd
Being an investor in Insurance Australia Group Ltd (ASX: IAG) has been a worthwhile experience in recent years. That's because it has delivered an annualised total return of 14.4% over the last five years.
IAG trades on a valuation that indicates it could be set for an upward rerating moving forward. For example, IAG has the same price to book (P/B) ratio as the wider insurance sector of 2.14 despite it having increased its bottom line by 11.9% in the last year.
Furthermore, with there being scope for synergies from the integration of the underwriting arm acquired from Wesfarmers, it could surprise on the upside. As such, now could be a good time to buy IAG.
