The returns from the Australian stock market over the last 12 months have been nothing short of incredible. While the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose 12.3% for the year – far exceeding the gains that would otherwise have been made from term deposits or government bonds – that return stretches out to around 18% when dividends are also included.
While we have good reason to expect interest rates to remain low for some time yet, investors will no doubt continue to search for high yielding stocks with solid growth prospects over the coming 12 months.
Here are three you should consider for the 2014-15 financial year…
- Skycity Entertainment Group Limited-Ord (ASX: SKC) operates in the gaming and entertainment business. It owns and operates three casinos across New Zealand as well as one in Darwin and Adelaide. While the company is relatively protected from competition thanks to strict casino licensing rules, it also boasts strong growth prospects and a solid 5% dividend yield. That compares to Crown Resorts Ltd's (ASX: CWN) 2.4% yield, although Crown's is franked to 50%.
- M2 Group Ltd (ASX: MTU) is a good alternative to Telstra Corporation Ltd (ASX: TLS) for investors wanting exposure to Australia's booming telecommunications industry. While Telstra is also a fantastic option for investors, M2 Group boasts greater growth prospects given its size and large number of acquisitions. While analysts are expecting a strong jump in earnings per share over the coming years, M2 Group will also focus on paying down debt and growing organically and offers a generous 3.9% fully franked dividend yield.
- JB Hi-Fi Limited (ASX: JBH), Australia's go-to discount electronics retailer, also offers a solid 4.1% fully franked dividend yield. The stock has been put in the bargain bin recently thanks to a decline in consumer confidence but its medium-to-long term prospects remain intact in my eyes. It boasts strong growth potential from its new 'Home' format stores, while it has consistently grown sales over the last 12 years, even through the GFC.
