The US election is finally over (hooray!) and although the market is rallying strongly today, I don't think investors should get too far ahead of themselves.
A number of unknowns remain when it comes to President-elect Trump and I feel confident that share markets around the world will still have to deal with a number of speed humps over the next few months.
With that said, I think a number of bargains have started to appear on the ASX and now could be a great time for investors to consider whether or not the they deserve a spot in their portfolios.
IOOF Holdings Limited (ASX: IFL)
The diversified financial services provider hasn't been the most loved company over the past 18 months, but the company's latest funds under management (FUM) update revealed that it is enjoying a period of strong fund inflows across all segments of its business. The shares trade on an undemanding price-to-earnings (P/E) ratio of 13 and offer a fully franked dividend yield of around 7%.
Lifehealthcare Group Ltd (ASX: LHC)
Lifehealthcare is a small-cap healthcare company that supplies surgical equipment and devices across Australia and New Zealand. The company has now confirmed that the recently completed private health insurance pricing review will not have a material impact on its earnings and this has seen a nice bounce in its share price. Nevertheless, the shares still trade on an attractive P/E of less than 12 and offer a dividend yield of around 5.7%.
Macquarie Group Ltd (ASX: MQG)
Macquarie was my top stock for November and although the recent market turmoil has seen its share price fall, I think investors buying today will be duly rewarded over the medium term. The company has become a leading asset manager and this business model now generates a significant amount of recurring revenue. Macquarie also doesn't face the same growth constraints as the big four banks as it has significantly more exposure to global markets. Add to this a partially franked dividend yield of 5.5% and it's hard to go past in my opinion.
Mantra Group Ltd (ASX: MTR)
Mantra shares have lost around 35% of their value since the start of 2016, despite it reporting two solid financial results. The accommodation provider is extremely well placed to deliver another improved profit result this year as it should benefit from the continued influx of overseas tourists into Australia's capital cities and the increasing number of domestic travellers choosing to holiday at home. Analysts are forecasting Mantra to pay a full year dividend of 13.8 cents per share, which means the shares currently offer a healthy dividend yield of 4.3%.
