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3 ASX shares to buy for 2016 and beyond

Credit: Mark, Vicki, Ellaura and Mason

The 2015 calendar year is pretty well done and dusted now, and most investors will be happy to put it in the rear view mirror.

Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fought gallantly over the last eight sessions (over which time it has enjoyed one of its best runs this year), it still looks set to record its first annual loss since 2011.

But with the main bourse currently sitting at 5267 points, some economists are predicting big things for 2016. For starters, Randal Jenneke from T. Rowe Price thinks: “The Australian market also looks more attractively valued compared with global equities,” as quoted by The Sydney Morning Herald recently.

Meanwhile, AMP Capital’s Shane Oliver and Credit Suisse think the ASX 200 is on track for 5700 and 6000 points by the end of 2016, respectively.

With interest rates also tipped by many to fall below their current level, the share market could well be the best place for new investment dollars in 2016.

Instead of focusing on the traditional blue chip shares however, such as the banks or miners, here are three companies I think could do well in 2016 and in the years to follow…

  1. oOh!Media Ltd (ASX: OML) is Australia’s leading out-of-home media company, providing advertisers with access to a diverse range of audiences. As an example, it owns a number of billboards which sit across some of Australia’s busiest roads, while it also owns digital signs in shopping centres, airports and other high-dwell time environments (e.g. cafes, gyms, etc.). Although the shares aren’t cheap, oOh!Media operates in an industry that seems set for significant growth over the coming years with the company in a prime position to benefit.
  2. Retail Food Group Limited (ASX: RFG) is the master franchisor behind high-quality brands which include (but are not limited to) Gloria Jean’s, Pizza Capers and Donut King. It maintains a capital-light business model and has plenty of room left to expand, while it also has a very strong track record for growing its earnings and dividends per share. At its current share price, Retail Food Group offers a compelling 5.4% fully franked dividend yield.
  3. REA Group Limited (ASX: REA) is considered by many investors as one of tomorrow’s blue chip shares. Since its humble beginnings in 1995, when the company was born in a garage in the eastern suburbs of Melbourne, REA Group has grown substantially and now operates Australia’s leading residential and commercial property website, realestate.com.au. It also has significant interests in other online classified real estate websites around the world and has plenty of room left to expand. At $54.53 per share, the shares are trading on an estimated 1.7% fully franked dividend yield, which is simply the icing on the cake.

Before you consider adding any of these companies to your portfolio however, you should know that our top investment analysts have just named their BEST share to buy for 2016. For the sake of full disclosure, this company makes up a considerable portion of my own portfolio because I think it has the potential for considerable growth over the coming years...

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Motley Fool contributor Ryan Newman owns shares of Retail Food Group Limited. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia owns shares of Retail Food Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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