Should Macquarie Group Ltd, Caltex Australia Limited and Transurban Group be on your buy list?

The $2.9 billion listed investment company Milton Corporation Limited (ASX: MLT) has just released its half yearly review and the announcement has given investors the opportunity to gain an insight into the thinking of this top-performing investment company.

In fact, when it comes to performance over the time frames of one, three, five, ten and fifteen years the Milton portfolio has outperformed its benchmark!

In the release, Milton noted that:

“Under the current volatile market conditions a company’s share price can be affected by factors many of which are unrelated to the current or likely future operating performance of the company. Milton will seek to use these opportunities to add to its investments in sound dividend paying companies.”

Milton’s advice is timely considering the current market volatility being experienced.

Here are five stocks which the company singled out that it had made larger investments in over the six months to 31 December 2015.

  1. Australia and New Zealand Banking Group (ASX: ANZ)
  2. Caltex Australia Limited (ASX: CTX)
  3. Commonwealth Bank of Australia (ASX: CBA)
  4. Macquarie Group Ltd (ASX: MQG)
  5. Transurban Group (ASX: TCL)

In the case of ANZ Bank, the stock is currently trading near its 52-week low and on a single-digit trailing price-to-earnings ratio. It certainly looks tempting but investors should also note the concern some analysts have over the sustainability of its dividend.

Meanwhile, the other four companies would all appear to be viewed more positively by the market and in some cases they are trading close to their 52-week high. Even so, these four stocks could arguably still be attractively priced for long term, buy-and-hold investors such as Milton.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. 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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