The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down 2.5% in 2015 so far.
Concerns over economic growth, a swooning Australian dollar and a resources sector downturn have each played their part.
However, with the market rising 4.4% this week alone, the stage could be set for savvy investors to swoop in on some great stocks offering big dividend yields. Here're three ideas to consider for a rebounding ASX200.
- Flight Centre Travel Group Ltd (ASX: FLT) – dividend yield: 4.1% fully franked
Flight Centre shares slumped in recent months as investors grew anxious over growth concerns and a lower Australian dollar (making international travel more expensive). While technological disruption has always been a key risk for Flight Centre shareholders, at their current price of $38.40, I think Flight Centre shares are offering good value for long-term investors. Indeed, short-term headwinds are evident, but its international strategy is sound and it remains cashed up for other opportunities if/when they arise.
- Woolworths Limited (ASX: WOW) – dividend yield: 5.3% fully franked
Shares in Australia's leading supermarket operator are up an impressive 4.6% this week after hitting a multi-year low last week. Woolworths, the owner of Big W, Masters and more; has heaps of appeal at these discounted prices, but it's not a risk-free investment by any means. As Motley Fool writer/analyst Mike King opined earlier today, the group's Masters Home Improvement business could be on shaky ground in the near-term, although it does hold long-term appeal.
- Australia and New Zealand Banking Group (ASX: ANZ) – dividend yield: 6.4% fully franked
Despite arguably offering the most foreign growth potential of Australia's four major banks, and paying a huge 6.4% fully franked dividend, shares of ANZ have slumped 11.5% in 2015. Fears over Chinese growth coupled with ongoing regulatory changes and a slowdown in domestic credit markets have pushed our fourth-largest bank into bear territory. Then again, with ANZ shares up 5.4% this week, it could now be time to take a second look at Australia's $83 billion super regional bank.
Buy, Hold or Sell?
At today's levels, I wouldn't say the local sharemarket is in bargain territory, but I will say there are pockets of value to be found. Indeed, I think Flight Centre shares are a worthwhile investment at today's prices. However, I'd rate Woolworths and ANZ shares as a hold.
