Even though interest rates are at incredibly low levels, making mortgage payments is never easy.
Indeed, with the prospects for the Aussie economy being uncertain, and the employment and GDP growth rates being slightly behind what most investors were hoping for, 2014 has been a challenging period for investors.
2015 could, of course, be a much better year. And, there are a number of stocks trading on the ASX with bright futures, which could make a positive contribution to your mortgage repayments moving forward.
With that in mind, here are three companies that, over the long run, could prove to be winning investments.
Fortescue Metals Group Limited
Clearly, Fortescue Metals Group Limited (ASX: FMG) is not the most stable of companies. Indeed, the iron ore miner has seen its share price fall heavily during the course of 2014 (it's currently down 49% year-to-date) as the price of iron ore has dropped to a five-year low and, subsequently, has caused a slashing of Fortescue's bottom line forecasts.
However, over the medium to long term, Fortescue could prove to be a worthy investment. Not only is there the potential for increased demand for iron ore from China (following what could be the start of a series of interest rate cuts), there is also considerable value on offer at the current share price.
Indeed, Fortescue's current P/E ratio of 9.9 appears to price in further iron ore price falls, which means there may be a relatively wide margin of safety on offer. Any positive surprises (such as the move by Chinese authorities to reduce interest rates, which sent shares in Fortescue surging by over 9%) could equate to impressive gains over the medium to long run. Thereby making Fortescue a stock with potentially strong, albeit volatile, future prospects.
Suncorp Group Ltd
While Suncorp Group Ltd (ASX: SUN) trades on a much higher rating than Fortescue, its immediate future seems to be rather more stable than that of its index peer.
Certainly, Suncorp is going through a transitional period that seeks to streamline and simplify its operations, which could lead to a return of capital to shareholders. However, over the next two years it is forecast to increase its bottom line at an annualised rate of 38.2%, which is a hugely impressive growth rate.
Furthermore, with shares in Suncorp trading on a PEG ratio of just 0.5 and having a fully franked yield of 5.9%, it could prove to be a top income and value play, too.
With shares in Suncorp having risen by 10% in 2014, they could continue to outperform the ASX (which is flat year-to-date) in 2015 and make a positive contribution to your mortgage repayments.
Amcor Limited
While the ASX is up just 14% over the last five years, shares in Amcor Limited (ASX: AMC) have more than doubled and are now up 113% since November 2009. That's a vast pace of growth, but there could be more to come in the future.
Indeed, Amcor has decided to focus on emerging markets for future growth potential. This seems to be a smart move, given the opportunity for increased consumption of Amcor's core products in such regions.
Furthermore, the decision to split Amcor from Orora last year has so far proved a shrewd one, since a renewed focus on products with strong long-term demand, such as medical product packaging and consumables packaging, could yield a higher rate of growth than in previous years for the wider business.
With Amcor trading on a P/E ratio of 16.5, it seems to be attractively priced given its excellent long-term growth potential. As such, it could make a positive contribution to your mortgage repayments.
