Late last year, Credit Suisse made a seemingly outlandish call that the Australian stock market would reach the 6000 point level by the end of 2015. It seemed like a tough ask at the time, with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) hovering nearly 15% below that target at just 5150 points.
Now, just over two months later, and that goal looks more than achievable by the end of the month with the ASX 200 having rocketed to a new seven-year high of 5,915.7 on Wednesday, just 1.4% below Credit Suisse's forecast.
While there have been some disappointing earnings results this February, including those from Australia and New Zealand Banking Group (ASX: ANZ), CSL Limited (ASX: CSL) and Insurance Australia Group Ltd (ASX: IAG), there have also been a number which really excited investors.
Take Coca-Cola Amatil Ltd (ASX: CCL) as a perfect example: although its earnings came in below expectations, it provided a very optimistic outlook for the company's future which resulted in a large jump in share price. Slater & Gordon Limited (ASX: SGH), Domino's Pizza Enterprises Ltd. (ASX: DMP) and Rio Tinto Limited (ASX: RIO) also jumped strongly following the release of their earnings reports.
Dividends Galore
Indeed, dividend growth has also played a key role in the market's rapid ascent. According to the Fairfax press, 76% of companies which have reported so far this February have increased their dividend compared to a year ago. Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and Woodside Petroleum Limited (ASX: WPL) all delivered the goods in that department.
