It is important to pick the right stocks before committing your money to an investment. As an investor, you want to invest your money in a company with a high potential growth rate. When there is growth in a company, dividend payouts tend to increase. As such, you need to research and find the best stocks to buy. Use both qualitative and quantitative stock analysis to determine the best stocks to invest in Australia.
Do not make investment decisions based on emotions and don’t rush. Also, diversify your portfolio to minimize risk. In this article, we will focus on how to select the best stocks to invest in in Australia.
How to Determine Best Stocks to Buy in Australia
The following are some factors that you need to consider to determine stocks to buy:
- Price to earnings ratio. This is the current share price in relation to per-share earnings.
- Dividend payouts. Look at how much the company has been paying its shareholders in dividends in the past years.
- Know the company operations. Get to know what the company operations are, and how they generate revenues.
- Stock price movements. Look at charts and see price movements. Look at the trend and see if their share prices are increasing or decreasing.
What are the Best Stocks to Invest in Australia?
The following are some of the best stocks to invest in now and for the long term in Australia.
1. Mineral Resources (ASX:MIN)
Mineral Resources Ltd is a mining company in Australia that mines lithium and iron core. Besides, it is involved in the provision of infrastructure services. It is a successful company, especially after the correction of ore prices in 2021.
The company is divided into three where it is involved in mining services in mines owned by other companies, it is also a producer and processor of commodities like iron and lithium products. It is also involved in the provision of energy resources like natural gas. This makes it one of the best stocks to invest in now in Australia.
2. Galileo Mining (ASX:GAL)
Galileo Mining is a mining company in Australia. Currently, it is exploring Norseman and Fraser Range projects. It has 100% ownership in Norseman Project while it has a joint venture with Creasy Group for the Fraser Range project.
Galileo Mining was listed on ASX in May 2018 after raising $15 million in the Initial Public Offering. The company started a resource expansion drilling in Nickel Sulphides which will add value to shareholders’ stock. As such, consider investing in its stocks.
3. Heramed (ASX:HMD)
Heramed is an Australian company that is developing technology to monitor pregnancies at home. The company develops software that monitors the development of a fetus in pregnant women.
For the last 3 years, earnings per share have increased by 32% every year. However, the company shares have been dropping by 5% every year. The share prices are expected to double in the coming months.
4. Iluka Resources (ASX:ILU)
Iluka Resources is an Australian mineral producer of zircon and high-grade titanium. Besides, it is involved in the production of mineral sands that are used in high-temperature applications like refractories and pigment manufacturing.
Iluka holds a 20% stake in Deterra Royalties, one of the largest listed resources in the ASX. This makes Iluka one of the best stocks for long-term investment.
5. Pepper Money (ASX:PPM)
Pepper Money is a non-bank lender that is focused on underserved customer segments. It offers home loan solutions like mortgages, car loans, and personal loans. The company operates in Australia and New Zealand.
The parent company of Pepper Money is Pepper Global Topco Limited which is incorporated in Jersey. It owns 60.59% of shares in Pepper Money Limited. Pepper Money Limited is listed on the Australian Securities Exchange and is one of the best stocks to invest in now.
6. National Australian Bank (ASX:NAB)
National Australian Bank is one of the four largest banks in Australia. It is a locally owned public company. NAB derives its revenues from the provision of banking services like investment banking and wealth management. It works with small, medium, and large businesses. NAB has some of the best stocks in Australia. Its dividend rate per share in 2021 was 73 cents AUD.
7. Pilbara Minerals (ASX:PLS)
Pilbara Minerals Limited is an Australian-based company that deals with the mining and exploration of lithium and tantalum minerals. The company operates in Australia and Papua Guinea and has its headquarters in West Perth.
The company recently acquired Altura Mining for $175 million which is a great deal for its shareholders. This Pilbara is locally owned and is a publicly listed company on the Australian Securities Exchange with some of the best stocks to invest in for the long term in Australia.
Read more: Best crypto stocks to invest in right now.
Summary of Best Stocks for Long Term Investment Australia
The following are some of the cheap stocks to buy for long term investment in Australia. The above company stocks have shown a positive consistency in their growth. Some of the best performing stocks in Australia are from mining companies. Australia has vast resources and companies in the mining sector have a strong financial foundation. As a result, their shares have a high potential.