The ASX has now reversed all of the gains made in 2014 so that it is now down 0.5% since the turn of the year.
However, a dip in the wider index provides an opportunity for shrewd Aussie investors to buy slices of high-quality companies at even better prices.
With that in mind, here are three stocks that fit the bill and which could help to boost your portfolio returns over the medium term.
BHP Billiton Limited
With the price of iron ore tumbling in recent months, the current financial year is set to be a tough one for BHP Billiton Limited (ASX: BHP). Earnings are due to fall by 4.6%, but having mothballed several projects and focused on efficiencies, BHP is forecast to bounce back strongly in FY 2016 with earnings growth of 13.4%.
This turnaround does not seem to be fully reflected in BHP's current valuation. With shares in the diversified miner having fallen by 7% in the last month, they now trade on a P/E ratio of just 12.8 and could prove to be a winning longer term play.
Amcor Limited
It's also a difficult period for Amcor Limited (ASX: AMC), with the packaging company experiencing declining earnings. In fact, Amcor's bottom line is due to fall at an annualised rate of 7.6% over the next two years.
This may seem like the wrong time to invest, but when the company's dividends per share are set to grow by 5.5% per annum over the same time period, it could prove to be a lucrative income play.
Indeed, dividends are well covered at 1.8 times and, with a yield of 3.9% (unfranked), shares in Amcor could surprise on the upside due to demand for a steadily improving income from a company with considerable emerging market prospects.
Origin Energy Ltd
Although it trades on a very rich P/E ratio of 22.7, Origin Energy Ltd (ASX: ORG) backs this up with top notch growth potential. Earnings at the energy company are set to rise at an annualised rate of 32.3% over the next two financial years. When combined with the P/E ratio, this indicates growth at a very reasonable price via a PEG ratio of just 0.7.
Having fallen by 4% in the last month alone, Origin Energy could prove to be a sound long term play which also offers a yield of 3.4%, with further dividend growth potential if the company can meet its ambitious forecasts.
