With interest rates tipped to stay low throughout 2015 and the share market rising 33% since the beginning of 2012, its little wonder so many Australians are making the switch to shares.
Indeed returns from term deposits and savings accounts are falling, whilst at the same time dividend stocks keep on climbing.
However given the strong rise of the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) over recent years the best gains in 2015 aren't likely to come from the usual suspects like Westpac and Telstra.
Nor will they will come from the big miners BHP Billiton and Rio Tinto.
As always investors should be looking for companies whose share prices have taken a hit. Like those who failed to meet short-term earnings forecasts or suffered a non-structural setback. Coca-Cola Amatil Ltd (ASX: CCL) is the perfect example.
It has fallen hard throughout 2014 despite offering exclusive rights to some of the world's best beverage brands, such as Coca-Cola and Beam.
Looking further down the market can also yield favourable results for investors planning to buy and hold for the long term.
Ardent Leisure Group (ASX: AAD), Slater & Gordon Limited (ASX: SGH) and IMF Bentham Ltd (ASX: IMF) each have significant overseas exposure and are currently experiencing strong growth. Yet despite their promise, each occupy a modest valuation and offer a solid dividend yield.
Going into 2015, they appear to hold great potential at a reasonable price.
Our #1 stock idea for 2015 – Yours FREE!
As can be seen from my disclosure below, I've positioned my portfolio to benefit from the future of these great companies, both in the short and long terms. However our top analyst, Scott Phillips, recently identified another ASX stock which is an even better buy today!
