2015 has been a rather turbulent year for Aussie investors. While the ASX has risen by a rather impressive 5% since the turn of the year, interest rate cuts, volatile commodity prices and an uncertain outlook for the economy have led many investors to understandably question whether buying shares is a wise move at the present time.
Certainly, interest rate cuts both domestically and in China could have a positive impact on the Aussie economy over the medium term. But, in the short run, investor sentiment seems to be waning, with the ASX dropping by 4% in the last month alone. And, while there are a number of high quality stocks on offer in the ASX, is now the right time to buy these three examples?
Transurban Group
Shares in toll road and tunnel operator, Transurban Group (ASX: TCL), have made a great start to the year, being up 14% year-to-date. This has compressed their yield to just 3.8%, which is less than the ASX's yield of 4.4%. However, Transurban has an excellent track record of dividend growth, with dividends per share having risen at an annualised rate of 10.1% during the last five years.
And shareholder payouts are set to rise by 12.2% per annum over the next two years, which puts Transurban on a forward yield of 4.5%. Furthermore, with a beta of just 0.88, it offers less volatility than the ASX in the short term.
Australia and New Zealand Banking Group
Shares in Australia and New Zealand Banking Group (ASX: ANZ) have disappointed in the last month, with them falling by 9%. This has put them on a price to earnings (P/E) ratio that is significantly below that of the ASX, with ANZ having a P/E ratio of 12.4 versus 16.8 for the index. And, with ANZ having having delivered bottom line increases of 9.5% per annum during the last five years, now could be a good time to buy it.
Certainly, ANZ's exposure to Asia has hurt its progress in the past, with China's soft landing slowing down growth in the region. But, with interest rates on the decline as China seeks to stimulate its economy, ANZ's forecasts could gain a boost over the medium term.
Macquarie Group Ltd
Strong financial performance from Macquarie Group Ltd (ASX: MQG) has helped to push shares in the investment bank up by 40% since the turn of the year. And, with last week's update being ahead of expectations, investor sentiment is certainly with Macquarie at the present time.
Despite this, Macquarie still trades at a slight discount to the ASX, with it having a P/E ratio of 16.7. Furthermore, it still yields 4.1% and is expected to increase dividends per share at an annualised rate of 10.2% during the next two years, which puts it on a forward yield of 4.9%. With interest rates set to fall further, Macquarie could benefit from improved investor demand for high yield stocks, which would benefit its wealth management division.
