As great as it is that the Australian share market is performing so strongly, long-term investors are also becoming frustrated at the lack of great buying opportunities. With the S&P/ASX 200 (INDEXASX: XJO) sitting within 2.5% of a six-year high, many of Australia's largest and most popular stocks are trading on lofty valuations and by no means present as good value right now.
However, while good buys might be harder to come by, you better believe they still exist. Here are three worth considering today.
- Collection House Limited (ASX: CLH) is a debt collection agency which not only boasts strong growth potential, but also a fat, fully franked dividend yield. While it achieved a 20% increase in net profit last financial year, greater shareholder returns are expected in the future with the company increasing its office floor space by 50% to accommodate up to 120 more staff members.
- Amcor Limited (ASX: AMC) is a global packaging business that has also grown strongly in recent years and shareholders have been handsomely rewarded. That growth is expected to continue over the coming years, particularly thanks to its exposure to emerging markets. Right now, the stock is trading on a P/E ratio of just 15 while it offers a 3.8% dividend yield.
- Coca-Cola Amatil Ltd's (ASX: CCL) earnings are coming under enormous pressure and plenty of investors are choosing to jump ship – and that is exactly why it deserves a position on this list. Coca-Cola Amatil is facing a number of strong headwinds right now which have seen its shares sink more than 41% over the last 18 months. However, I strongly believe these issues will be restricted to the near term, giving long-term investors the opportunity of a lifetime to buy CCA at such a discounted price. In addition, it offers a very generous dividend well worth taking advantage of.
