3 great stocks for total shareholder returns

Share price gains and dividends go hand-in-hand with growth.

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Looking at the past year, a number of companies in the S&P ASX 100 Index (ASX: ^XTO) had stellar returns of up to 70%-80% in the year. They may not perform to the same level this year, but what stocks have good prospects and can last year’s winners keep the momentum up?

Macquarie Group Ltd (ASX: MQG) has moved steadily up 42.4% to $54.09 and has a dividend yield of 3.70%. Following the general uptrend of the big four banks, confidence is back up for the investment bank due to the improving IPO market, signs that mergers and acquisitions will be increasing in number and the need for companies to raise capital to fund expansions in general.

They do their best business and make the most during a rising economy when deals are there to be done. 2013 NPAT was up by $110 million to $872 million.

In the 2014 first-half report released in November, for the six months to 30 September, NPAT was $503 million, up from $361 million in the previous corresponding period. Median analyst forecasts have EPS rising to 359.1 cents per share (cps) for FY2014, up from 246.1 cps in 2013.

Crown Resorts Ltd (ASX: CWN) will be having a full year of activities and development as it moves forward in the approval process for its proposed 6-star hotel and gambling venue to be located at the Barangaroo development site in Sydney’s Darling Harbour. This will open up the Sydney casino market, which until now was held only by Echo Entertainment Group Ltd (ASX: EGP).

It gave investors a 47.8% total shareholder return this past year, and median analyst forecasts are projecting FY2014 EPS of 88.3 cps, up 31% from 67.4 cps in 2013.

Its Melco Crown joint venture business is opening a new integrated resort and casino in Manila in 2014, and has plans for a new hotel in Sri Lanka. Negotiations with the government about including the proposed casino are still in progress.

Perpetual Limited (ASX: PPT), the fund management company, raised its funds under management by $2.6 billion during the 3 months to 31 December, from $27.8 billion to $30.4 billion. Included was the $1.3 billion of FUM from its acquisition of The Trust Company, which was completed in December.

Its one-year total shareholder return was 25.11% and NPAT was back on the rise in 2013 – $74.7 million compared to 2012’s $64.2 million – with financial markets up strongly for the year.

Median analyst forecasts are estimating an EPS rise of 33% for FY2014 to 244.6 cps, up from 2013’s 183.6 cps.

Foolish takeaway

The earnings outlooks are attractive and the PE ratios of the three have risen appropriately for them. Investors won’t be buying them at an immediate discount, but by learning about the companies and understanding the long-term growth prospects the true value comes out.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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