2 high-yielding bargains to snap up for income and growth

The gains of the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) since late June have pretty much been flat, not leaving much to cheer about. After the September sell-off and the partial recovery in October, we’re back to where we started this financial year.

But that still gives nimble investors an opportunity to snap up some high-yield stocks in bargain territory. That allows you to lock in a better yield while you wait for the share price to rise.

Below are two quality companies with high yields that look attractively priced.

1)   The engineering and professional services company WorleyParsons Limited (ASX: WOR) has trailed down in share price since early July, from about $19 to close to $12. Due to its mining services business, the company has been pulled down by the weakening iron ore and coal markets.

However, the company actually gets a large part of its revenue from its hydrocarbon segment covering oil and gas. As mining work has trailed off, it is increasing its gas and petroleum business. Also, WorleyParsons is geographically diverse around the world, so it isn’t locked in to any one market or country’s economy.

The stock pays a whopping 6.9% yield partially franked. The company has completed a restructure and is looking toward higher operating cash flows. It may take some time to turn things around, but at these low prices, it could be worth it.

2)   IOOF Holdings Limited (ASX: IFL), the investment portfolio administration and financial services provider is trading sideways similar to the ASX recently.

However, superannuation and SMSFs are driving demand for managed funds, with people preparing for retirement trying to squeeze out every last drop of returns for the future. Already since the start of this financial year, its funds under management and administration (FUMA) climbed 21% to $116.4 billion by the end of September.

Net cash flows to its platforms have been positive for the last seven quarters. That illustrates why analysts are forecasting a consensus earnings growth rate of an average 12% annually in the next two years. Dividends are expected to rise about 10% annually over the same time as well. That’s great news since the stock is already yielding a hefty 5.5% fully franked. It may be good to pick up some IOOF Holdings stock before stronger earnings results possibly push up the share price.

Building a portfolio with steady, reliable income stocks is a big part of successful investing. Dividend income can on the whole make up as much as 40% of your returns over the long-term. If you are looking for other good dividend stock ideas, then you'll want to know about the company our top Motley Fool investment advisor Scott Phillips just named as his #1 dividend-paying stock for 2014-2015.

With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned.

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