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As the S&P/ASX 200 (ASX: XJO) (^AXJO) climbs higher, many new investors will enter the market as they react to positive news headlines regarding the massive gains being posted by some stocks. Usually it’s the perfect time to sell, not buy.

However, here are 5 stocks which still represent value for long term for investors and shareholders looking to reweight or open a portfolio.

Of the top companies listed on the index, Telstra (ASX: TLS) is one stock which still has a large upside despite its share price gains in the past 24 months. It pays a 5.7% dividend (which is likely to increase in coming years) and has a perfect base here in Australia from which it can leverage growth in Asia.

Another company which has used a similar strategy is Coca-Cola Amatil (ASX: CCL). The stock has had a tough run in the past year as investors focused on short term earnings and forgot about its long term potential. Although the next two years might be a bumpy ride, it’ll pay a strong 4.5% dividend to keep you company.

A well-known but riskier investment is Myer (ASX: MYR). Since its IPO, Myer has struggled to regain the confidence of investors however it’s got a number of factors that make it a compelling investment case. Number 1, its big dividend yield is a massive perk particularly while interest rates are so low, Number 2 increased consumer confidence will drive top line growth and, number 3 its investment in its online store is paying off.

In the past few months some retailers have boomed while others have been tossed in the trash. Cash Converters (ASX: CCV) has huge long term growth potential but, once again, investors have become short sighted by slightly lower growth forecasts. Cash Converters pays a 4.9% fully franked dividend and is trading below 10 times earnings. I own it and will continue to buy in whilst it remains at these levels.

With a huge upside and relatively limited downside, Newsat (ASX: NWT) could soon prove to be a market darling. It’s Australia’s only pure play satellite company and owns a number of orbital slots which it hopes to fill with satellites, starting in 2014. Although it doesn’t come cheap, its margins will improve significantly upon a successful launch and reward shareholders in the long term.

Foolish Takeaway

Dividends and growth: what more could an investor ask for? At current prices these stocks represent great long term value and most will reward your investment with fully franked returns. However, none of these stocks are our favourite dividend idea.

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Motley Fool Contributor Owen Raszkiewicz owns shares in Myer and Cash Converters. 

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