According to most leading economists, 2015 is going to be another year of low interest rates, dwindling commodity prices and a falling Australian dollar.
For investors that means the interest rates on term deposits and savings accounts are here to stay. But if you thought 3% per year was bad, it'll be even worse if the RBA lowers the cash rate to 2% as many are expecting.
And with property prices slowing and unemployment rising, investors should start populating a watchlist of their favourite Australian stocks.
Whilst they're not all a buy at today's prices, here are five great ASX stocks with big dividend yields to stick on your 2015 watchlist…
- Australia and New Zealand Banking Group (ASX: ANZ) is our leading big bank in Asia. In the coming year, earnings per share are expected to improve modestly and a fully franked dividend of 5.9% is expected to be delivered.
- Super Retail Group Limited (ASX: SUL) is the owner of BCF Boating Fishing Camping, Rebel, Supercheap Auto and more. Its shareholders have had a tough year, as its leisure businesses struggled to maintain profitability in the fallout of dwindling mining investment. It's expected to pay a 5.5% fully franked dividend in 2015.
- Rio Tinto Limited (ASX: RIO) is Australia's largest iron ore producer. With the huge falls in the steel making ingredient's spot price, its shares have also suffered in 2014. Whilst the tough times could be expected to continue in the medium term, analysts are forecasting a 4.4% dividend.
- Telstra Corporation Ltd (ASX: TLS) has a very reliable 5.1% fully franked dividend. Despite investing heavily in Asia, it is expected to declare a payout of 30 cents per share in the coming year.
- Woolworths Limited (ASX: WOW) has fallen hard in recent years as questions over its Masters business and competitive threats from international supermarket giants hit newspapers. Indeed in a little over eight months its share price has fallen from around $38 to just $30. However this has resulted in an increasing dividend yield, currently forecast at 4.8%.
Buy, Hold, or Sell?
Whilst these five businesses each look to be compelling investments in 2015, investors must look past their dividend yields to assess the truth worth of the underlying businesses. Indeed at today's prices, I'm not a buyer of any of these five stocks, although I do have them firmly on my watchlist.
Do you want to know the names of three dividend stocks you can buy right now?
