With doubts surrounding the medium term future of the global economy still firmly in investors' focus, it's of little surprise that interest rates remain at just 2.5%. Indeed, the RBA has indicated that it is content to allow further house price rises to take place so long as the economy keeps moving forward.
As such, savers and income investors may be stuck with low interest rates over the medium term, with there being the added possibility that they could move lower before they get any higher.
With this in mind, here are three stocks that yield 6% or more and which could provide a neat solution to the present woes of savers and income investors.
National Australia Bank Ltd.
With a fully franked yield of 6%, National Australia Bank Ltd. (ASX: NAB) certainly hits the spot when it comes to income investing. However, things could be about to get even better, as an improved macroeconomic outlook is expected to boost NAB's bottom line by 6% per annum over the next two years.
In turn, this could mean dividends per share rise at almost the same pace so that shares in the bank yield 6.5% in FY 2015. Clearly, this would be hugely attractive to income seekers and, with shares in NAB having a P/E ratio of just 12.5 (versus 15.5 for the wider market), they could see their rating move upwards over the medium term.
Insurance Australia Group Ltd
Although dividends per share at Insurance Australia Group Ltd (ASX: IAG) are due to fall slightly over the next couple of years, the stock is still on course to yield a fully franked 6.3% per annum in the current year and in FY 2016. This is well above the ASX's yield of 4.7%.
Furthermore, despite 2013 being a relatively quiet year for major disasters, IAG still trades on a relatively attractive valuation. Its P/E ratio is just 11.2 in spite of shares in the insurer rising by 10% in the last six months. This combination of income and value could help them to push even higher.
Scentre Group Ltd
Property owner Scentre Group Ltd (ASX: SCG) seems to offer top notch value for money right now. That's because its price to book ratio is just 0.93, which is below the market's average of 1.25 and the sector average of 1.06. However, there's more to Scentre than just a low share price.
Indeed, it has a yield of 6.1% (unfranked) and, perhaps more importantly, is expected to grow earnings at an annualised rate of 5.1% over the next two years. This should allow it to increase dividends at a brisk pace and could mean shares in Scentre yield as much as 6.4% in 2015. As a result, Scentre could be a great way to overcome continued low interest rates.
