Motley Fool Australia

3 S&P/ASX200 stocks I’d buy with $10,000 today

With the S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO) climbing higher now that interest rates have been cut to just 2.25%, cheap blue-chip stocks are becoming hard to find.

However, if investors are willing to look a little further down the market, to the blue chips of tomorrow there’s a wealth of opportunities waiting to be scooped up.

For example, retail telecommunications company M2 Group Ltd (ASX: MTU) continues to offer both growth potential and a juicy fully franked dividend yield of 3.3%. With the owner of Dodo, Primus and Eftel trading on a P/E ratio of just 17 and dividend yield of just 3.3%, I’d gladly buy the stock today – recently I bought some for my family’s portfolio (see my disclosure below)…

Another cheap long-term growth stock which savvy investors can get their hands on at a discounted rate is Challenger Ltd (ASX: CGF). The annuities provider and funds management business has rallied 3% higher over the past five days, yet it trades on a P/E ratio of just 10 and a partially franked dividend yield of 4.3%.

Despite holding the title of Australia’s leading personal injury (PI) law firm, Slater & Gordon Limited (ASX: SGH) continues to grow modestly through acquisitions and organic growth. Coupled with a push into General Law – which compliments the existing PI businesses – and a very promising expansion into the larger UK market, at $6.63 per share Slater and Gordon is a good long-term buy to hold.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool Contributor Owen Raszkiewicz owns shares of Slater & Gordon and has a financial interest in M2 Group Ltd. Owen welcomes your feedback on Google plus (see below) or you can follow him on Twitter @ASXinvest.

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