Is this the best stock to dump $5,000 on?

It's no wonder that so many of the largest brokers and equity researchers all seem to love this business at current valuations.

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If you've got some spare cash and are looking to buy a strong business with an attractive yield and growth potential then you would do well to consider Amcor Limited (ASX: AMC). Amcor makes the packaging and containers for food, beverage, and pharmaceutical products all over the world. Dividends, earnings per share and profits have grown every year since the GFC with forecasts for that trend to continue.

As the world's largest packaging company it might not be the most exciting business amongst the S&P/ASX 200 Index (INDEXASX:XJO), but with the equity-research arms of market heavyweights Commonwealth Bank of Australia (ASX: CBA), Citigroup and Deutsche Bank all reportedly having a "buy" rating on the stock it has support for good reason.

Amcor's revenues of $9.5 billion are now almost split evenly between North America, Western Europe and the fast-growing Emerging Markets division. In the first half of FY 2014, China, achieved sales growth of 18% of which 11% was underlying organic growth and 7% was from acquisitions. Amcor also demerged its Australasian packaging distribution operations in the first half of FY 2014 to create a separately-listed company, Orora Limited (ASX: ORA).

The company has plenty more growth potential, either organic, acquisitive, or by virtue of technological innovations that create efficiencies to increase profits. Last week it announced what it says is a revolutionary new technology to reduce operating costs up to 25% when forming and filling plastic bottles. This kind of innovation is what should allow it to improve margins and returns to shareholders long into the future.

As an investment Amcor ticks all the boxes of having competitive advantages, defensive earnings, international exposure, growth potential and an attractive valuation. Selling for $10.32 it yields 3.9% based on dividend forecasts of 40 cents per share for FY 2014 on a price earnings of 17.

Amcor looks a solid prospect for any investor looking for a growth stock on an attractive valuation. However, there's another lesser known growth stock we know with perhaps a slightly better valuation and a grossed-up dividend yield around 7%!

Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. You can find him on Twitter @tommyr345

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