With many of Australia's leading economists predicting that the Reserve Bank will keep rates on hold at the record low of 1.5% until late next year at the earliest, it's quite likely that the paltry interest rates on offer with savings accounts are here to stay.
In light of this, if I had $20,000 sitting in a savings account I would put it to work in the share market.
Three shares which I would consider investing this money in are listed below. Here's why I think they are worth considering:
BWX Ltd (ASX: BWX)
Although the company's name may not be well-known, no doubt most readers will be well aware of its popular Sukin skincare range. Thanks to the international expansion of the Sukin brand and a number of earnings accretive acquisitions, I expect EBITDA growth to be around 50% in FY 2018. While this level of growth is likely to slow over the following years, I still believe the company is capable of above-average earnings growth for the next decade. This could make it a great buy and hold investment option.
Nextdc Ltd (ASX: NXT)
With more and more businesses shifting to cloud-based software and storage, I believe this leading data centre operator is in a great position to deliver strong earnings growth for the foreseeable future. Especially with NEXTDC planning to open three new state of the art data centres this year. This will boost overall capacity greatly, cement its market-leading position, and help it capture the incredible demand for data centre services.
Telstra Corporation Ltd (ASX: TLS)
Although this telco giant's shares could yet sink lower, I believe the negative news flow is out of the way now and its shares could soon find their feet and start to rebound higher. In FY 2018 the telco giant plans to pay a 22 cents per share dividend, which equates to a fully franked yield of 6.4% at the current share price. While there are concerns that this dividend could come under pressure in the future, I remain confident that the Internet of Things market could help Telstra offset some of the post-NBN rollout earnings gap.
