After a series of ups and downs the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is higher by just 1% year-to-date, vastly underperforming its international peers.
Whilst the index may not have had the best start to the year, four shares in particular have gone gangbusters in 2017. Here’s why:
The Bega Cheese Ltd (ASX: BGA) share price is up a whopping 41% year-to-date. The rally is largely the result of a positive market reaction to the dairy company’s $460 million acquisition of a number of brands from Mondelēz. Chief among them is the iconic Vegemite brand. Management expects the acquisition to be significantly accretive to earnings, contributing between $40 million and $45 million in EBITDA in the first 12 months. But at 32x trailing earnings I think Bega Cheese’s shares have started to look a little expensive now. In light of this I wouldn’t be a buyer today.
The CSL Limited (ASX: CSL) share price has climbed 20% so far in 2017 thanks largely to a better-than-expected half-year result. For the first six months of FY 2017 the biotherapeutics company delivered a 12% jump in net profit after tax to $806 million. A key driver of the growth was its immunoglobulin product Privigen which saw a 34% jump in sales. Another positive was its Seqirus influenza vaccine segment. As well as posting a 14% increase in sales, the segment made a positive contribution to EBITDA. Despite its rally I believe CSL is still an outstanding buy and hold investment.
The Summit Resources Ltd (Australia) (ASX: SMM) share price has risen an incredible 472% year-to-date. Due to low demand and oversupply, uranium prices hit a 12-year low of US$18 a pound last year. But thanks to increasing demand and a production cut from Kazakhstan-based uranium producer Kazatomprom, prices have recovered and risen sharply in 2017. Fellow uranium company Paladin Energy Ltd (ASX: PDN) has also seen its share price jump. Year-to-date the Paladin Energy share price is up 30%.
Missed out on these gains? Don't worry, I'm tipping these fast-growing shares for big things in 2017.
This company’s dividend is almost the stuff of legends. Its reliable cash flows support a high payout ratio, and the company’s stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.