Telstra Corporation Ltd (ASX: TLS), Computershare Limited (ASX: CPU) and Slater & Gordon Limited (ASX: SGH) are dominant Australian businesses that deserve a spot every investor's watchlist.
But are they a buy at today's prices?
Let's take a quick look at each…
Telstra
There's a lot to like about owning shares in Australia's largest telecommunications company. Not only does it offer a 5.4% fully franked dividend, its growth in Asia holds potential for long-term profit growth and even in the worst market crashes, Telstra will likely survive. Despite these features, however, I'm personally waiting for Telstra shares to trend closer to $5 before buying in.
Computershare
Like Telstra, Australia's largest share registry services business is a reliable dividend payer with modest long-term growth characteristics. Computershare, operating in 20 countries, connects shareholders to the companies in which they hold their shares. Although the US Federal Reserve held off raising official interest rates this week, Computershare will be a direct beneficiary of the inevitable rise of US interest rates. At today's prices, it looks like a decent long-term value investment.
Slater & Gordon
Slater & Gordon shareholders – including yours truly – were rocked when the Australian law firm decided to undertake a huge takeover of the Professional Services Division of struggling UK-based firm, Quindell Plc. Then, allegations of misappropriation in financial statements saw Slater & Gordon's share price fall 56% since the beginning of the year. With investigations ongoing, I'd hold off buying shares in the law firm, even at these seemingly low prices.
Buy, Hold or Sell
At today's prices, I think both Computershare and Telstra are worthy of closer inspection. However, there is too much uncertainty in the short-term outlook of Slater & Gordon for savvy investors to justify a purchase of stock.
