It had been expected that the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) would experience a setback in September, given that September and October have traditionally been the worst performing months for the market. Instead, it has pushed forward 2.3% to set new five-year highs with many stocks delivering solid returns. Five companies that have done just that are:
- TPG Telecom (ASX: TPM) has been one of the best performers in the ASX 200 over the last months with an outstanding 24.7% gain, jumping from $3.61 to $4.50 per share. The telecommunications company pleased investors when it announced a 9% increase in revenue for the year as well as a 64% jump in net profit after tax. TPG’s increased result also aided diversified investor Washington H Soul Pattinson (ASX: SOL) towards yet another strong year.
- Mortgage Choice (ASX: MOC) has gained 16.4% since the beginning of the month, continuing on with its impressive 12-month run (it has gained an incredible 86.5% since this time last year). The company has benefited from the historic low interest rate environment, whereby more and more customers have sought out advice on the best products available to them.
- Vocus Telecommunications (ASX: VOC) started off the month by ringing in a 47.75% increase in revenue from ordinary activities for the year to June 30, which started the ball rolling for its 17.4% increase for the month so far.
- Fortescue Metals Group (ASX: FMG) shares have appreciated by 7% for the month to date with steelmaking ingredient iron ore showing resilience on the back of stronger than expected Chinese trade activity. Although the shares are up for the month, they have fallen away since 11 September, where they were priced at $4.80. The shares are now valued at $4.59 as the commodity has fallen back to US$131.80 per tonne.
- National Australia Bank (ASX: NAB) has so far outperformed its main competitors this month having delivered a return of 7.3%. As has been the case with Mortgage Choice, NAB has benefited from the low interest rate environment, where investors have diverted away from the low returns offered in term deposits to instead take advantage of NAB’s high dividend yield.
Although short-term trading should not be of too much concern, investors should also be on the lookout for excellent opportunities. If you think you may have missed the boat on some of these companies, then perhaps you might be interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”
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Motley Fool contributor Ryan Newman owns shares in Washington H Soul Pattinson.