Move over high-yield dividend darlings – here are 4 stocks set for some real gains

Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking Corp (ASX:WBC) could be cooling down, so we need to find the stocks that are next on the market’s hit list.

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For the first time in years it seems as though investors might be cooling on the more traditional high-yield dividend darlings. That’s right, the record-breaking runs of companies like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) could be quickly nearing an end.

As savvy investors, it is our job to find which stocks the market will target tomorrow so that we can buy today. With low interest rates here to stay for the foreseeable future, my best bet is it’ll still be stocks that not only offer solid dividend yields, but also strong growth prospects moving forward.

For example, M2 Group Ltd (ASX: MTU) should be near the top of your hit list. M2 Group has grown strongly in recent years thanks to the strategic acquisitions of businesses like Dodo, Eftel and Primus and will now focus on growing organically and reducing the size of its debt. Despite its growth rate, the stock is trading on a P/E ratio of just 14.5 and offers a very generous 4.8% grossed up dividend.

Coca-Cola Amatil Ltd (ASX: CCL) is another company the smart investors should be looking at right now. Granted, its recent performance has been disappointing and it all but confirmed that the difficult conditions are here to stay for the short term. However, the long term is looking far brighter with management focusing on reducing costs and improving productivity to solidify the brand’s strength. Coupled with a forecast yield of 6.1% (grossed up), you’ve got yourself a winning bet.

Another company I believe could be targeted by investors is small-cap online travel agent Webjet Limited (ASX: WEB). Travellers can not only conveniently organise their flights online through Webjet but also their accommodation and car hire too. With terrific growth prospects, Webjet also offers a generous 6.4% grossed up yield.

For growth and dividends, you could also look at JB Hi-Fi Limited (ASX: JBH). Granted, JB Hi-Fi operates in the retail sector which could make some investors a little uneasy, but its sales remain strong while the company also stands to benefit in the coming years from the rollout of its new ‘Home’ format stores. The stock offers a very attractive grossed up yield of 7%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd.

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