When it comes to buying shares, patience is vital.
Knowing a company has a bright future ahead is one thing but paying a reasonable price for that growth potential is another thing entirely.
Once you've got an investment idea, it's important to track the company's story over time and wait until it reaches a price you're willing to pay. Being impatient on price is a quick way to the sharemarket poor house.
3 stocks with big dividends and potential
1. G8 Education Ltd (ASX: GEM) is Australia's largest listed childcare centre owner and operator. Over the past year its share price rose then fell dramatically but now sits at a good level for new investors to make a purchase. In the next year it's expected to pay a dividend equivalent to 4% fully franked.
2. Australia and New Zealand Banking Group (ASX: ANZ) is the ASX's third largest bank by market capitalisation but the only one with a firm focus on the booming Asian region. At $33.62 per share, ANZ is far too expensive to justify an investment today, despite boasting a forecast dividend yield of 5.4% fully franked. However with a rapidly growing international business it certainly deserves a spot on your watchlist until its valuation becomes more compelling.
3. Telstra Corporation Ltd (ASX: TLS) has also recognised the potential in Asia and through its International division has been kicking goals for shareholders. At $6.60 per share, Telstra is being tipped by analysts to pay a fully franked dividend equivalent to 4.5%. Unfortunately at today's prices it's best left on your watchlist until we see a significant pullback in price.
A better buy than Telstra…
Currently, only G8 Education appears to be a good buy for investors. But whilst ANZ and Telstra shares are too expensive to justify a buy rating, if you bought in at a price much lower than now, they're certainly worth holding because each have solid long-term growth prospects.
