With the IMF being relatively bearish on the prospects for the Aussie economy, it seems as though the RBA's next move when it comes to interest rates could be downwards.
Clearly, this would be bad news for savers and for income-seeking investors. However, here are three stocks that could boost your income and help you to beat low interest rates in the future.
Telstra Corporation Ltd
With a fat, fully franked yield of 5.5%, it's little wonder that Telstra Corporation Ltd (ASX: TLS) is an obvious income choice. However, if you look beyond a top notch yield, there's a lot to be excited about when it comes to Telstra's future, too.
For example, the company has huge potential in Asia and is aiming to derive a third of group revenue from the region by 2020. This could help it to grow the bottom line and surprise on the upside when it comes to earnings growth over the medium to long term.
With shares in Telstra trading on a P/E ratio of 14.7 versus the ASX's P/E ratio of 15.3, they seem to offer decent value for money, too.
National Australia Bank Ltd.
Investors in National Australia Bank Ltd. (ASX: NAB) have experienced a tough month, with shares in the financial services company falling by 7%. However, this also means that their valuation is much more attractive, since they now trade on a P/E ratio of 12.4.
Furthermore, shares in NAB now yield a hugely appealing 6.1% (fully franked), and with earnings set to grow by 6% per annum over the next two years, NAB could be yielding as much as 6.6% in FY 2015 (assuming a constant share price).
Therefore, not only does it offer a super yield now, NAB could also help to give you a real term increase in dividends, too.
Australia and New Zealand Banking Group
It's a similar story at Australia and New Zealand Banking Group (ASX: ANZ), where the bank is set to experience an upbeat period. Indeed, earnings are expected to be 22.5% higher in two years' time and this should allow dividends per share to rise at a brisk pace.
While a fully franked 5.4% yield is impressive, the current yield on ANZ's shares could rise to as much as 5.9% in FY 2015. Moreover, dividends should remain well covered due to the strong earnings growth that is forecast, with a dividend coverage ratio of 1.4 times looking set to remain.
As a result, ANZ could be a sound buy for income seeking-investors over the medium to long term.
