Pawn shop operator and payday-loan financier Cash Converters International Ltd (ASX: CCV) is not in a very flashy industry. Perhaps it's for this reason that the market has yet to appreciate the real value of this business.

FY 2014 was a rough one for Cash Converters, culminating in a year-on-year fall in net profit of 35.7%. Regulatory changes to fees charged on micro-loans affected its business and forced an adaptation to the new business environment. This was certainly an obstacle for expanding the business, but was always going to be just a short-term setback .

The market has not been kind to Cash Converters in the months since it announced the disappointing fall in profit. Its share price fell from nearly $1.20 a share in mid-August to below $1 about a week ago. This fairly substantial dip reflected the transitory period that Cash Converters had to go through following the legislation changes. However, with the release of its quarterly trading update, I think it's time to take another look at Cash Converters.

On the day Cash Converters released its quarterly trading update, the share price jumped around 9%. Key to this quarterly trading update was strong revenue growth – up 26% compared to the same quarter last year. This is perhaps a sign that the headwinds that Cash Converters faced are now largely behind it, and that it has adapted strongly to the changes in micro-loan regulation.

2014 reflected a retreat for the business, but with continued expansion plans for its retail stores, and consistently growing micro-loan business, estimates put Cash Converters growing earnings by 30% in the next year.

With short-term obstacles seemingly in the past, strong growth prospects in the future, and a fully franked 2.9% dividend yield, there's a lot to like about Cash Converters at the moment.

The post Here's why you should buy Cash Converters International Ltd today appeared first on The Motley Fool Australia.

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This goldilocks condition of both relative safety and growth prospects could be found in these three stocks.

Slater and Gordon Limited (ASX: SGH)

Law firm Slater and Gordon is perhaps one of the best-known law firms in Australia – and it's certainly one of the biggest. Since building branches all across Australia, Slater and Gordon has been busy replicating its success in the U.K. Since 2012, takeovers and expansions into the U.K. have delivered great returns for the company and its investors. In the last year, the share price has risen nearly 60% and at around $6.00 a share today, delivers a 1.4% dividend fully franked.

Vocus Communications Limited (ASX: VOC)

Telecommunications company Vocus has experienced extraordinary growth recently, rising from $2.60 per share a year ago to about $5.80 a share. Growth in Vocus's share price in the last year often came following acquisitions and expansions of interests. Whether or not the growth that Vocus has experienced so far will continue is in the hands of the management – safe hands if the past year is anything to go by. With little indication that the management is content to rest on its laurels, Vocus looks set to grow even further in the future.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is in the business of managing corporate travel, and has a presence not only in Australia and New Zealand, but also Asia and the U.S. It's Corporate Travel Management's U.S. expansion that has been the focus in the last year, and has subsequently delivered handsomely – a share in Corporate Travel Management used to be worth about $5, nearly doubling in the past year to $9. This 80% growth was delivered to shareholders along with a solid, fully franked 1.6% dividend yield. To be able to deliver both exceptional returns and a healthy dividend is exciting indeed, and there's little indication that this trend will change for the worse.

The post 3 stocks that offer both growth and potentially lower volatility appeared first on The Motley Fool Australia.

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Times have been tough for investors lately, and days of declining stock prices can be a source of distress for many of us. For others however, a falling stock market means an opportunity to invest in great companies at bargain prices.

In an ideal world we'd buy at the very bottom of a market dip and then sell at the height of a boom. In the real world, only hindsight can tell us exactly when a peak or trough occurred, and trying to time your trades to the day-to-day movements of the market is a fool's errand (lower case 'f').

Contrarily, the Fool's errand (capital 'f') is to seek out great companies and buy shares in those companies at attractive prices. It's this strategy that has successfully built wealth safely and consistently for investors everywhere. So when a company's stock price falls without apparent reason, as often happens during a market downturn, this can represent an opportunity for investors looking for a bargain.

Here are three companies that have seen their stocks drop to near 52-week lows. Let's take a closer look to see if any deserve your investing dollars.

Crown Resorts Ltd. (ASX: CWN): Currently trading at a price of around $13.70, barely above its 52-week low of $13.22, this is one stock that has suffered in the last few months. This is despite announcing in August that net profit after tax had increased a stunning 65% over the previous year. The announcement of an agreement with the Victorian state government to reform the Melbourne casino license to improve competitiveness also did little to satisfy investors. It's time to start wondering whether or not this stock is being fairly valued by the market.

At $13.70, Crown Resorts trades at a price-to-earnings ratio of 15.52 and delivers a partially franked 2.8% dividend yield. Given the attractive price, modest growth prospects and stable dividend, I think Crown Resorts is particularly attractive at this time.

Wesfarmers Ltd. (ASX: WES): Coles, Bunnings, Officeworks and K-mart are all staples of living in Australia and it's their scope, brand and sheer size that make Wesfarmers a very safe stock in which to invest your hard-earned money. At a price of $41.42, a share in this company is trading at just higher than its 52-week low of $39.80. Particularly in recent months, the Wesfarmers stock price has taken a hit – its 52-week high of $45.88 a share occurred less than three months ago.

At these prices Wesfarmers delivers a 4.8% dividend yield – fully franked. Because of this dividend, even ignoring the predicted growth, its current share price could reflect a very attractive entry point into a business that is firmly part of Australia. This could be a share to buy and hold for the very long term, and enjoy the dividends for years to come.

Coca-Cola Amatil Ltd. (ASX: CCL): Coca-Cola Amatil has taken a beating over the past year. From a 52-week high of $13.05 per share down to a recent price of about $8.60, this reflects roughly a 35% drop. It must be said that not all of this drop came from market fluctuations – Coca-Cola Amatil's business has had a rough year, announcing a profit downgrade and planned restructuring.

However, in part due to the strength of the Coca-Cola brand, it's easy to imagine the business recovering in the medium to long term. Meanwhile, despite its recent troubles it still maintained a partially franked dividend worth 5.6%. Although it's difficult to ignore the short-term troubles the business is facing, the dividend offered, coupled with mid-term recovery prospects could make Coca-Cola Amatil a very timely buy.

Investing in any or all of these three stocks could be a defensive move that could still grow your money in a falling market.

The post These 3 companies are trading at bargain prices – is it time to buy? appeared first on The Motley Fool Australia.

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Investor extraordinaire Warren Buffett famously said that it's "only when the tide goes out do you discover who's been swimming naked." I think his point is tied closely to his investment philosophy of investing in excellent companies at excellent prices. This philosophy truly shines when the market starts to slide. And when that happens, it's time to take focus off the day-to-day prices of stocks and focus on the intrinsic value of what your shares represent – a real stake in a real company.

The following three companies have been successful through thick and thin, and chances are they will continue to be successful no matter what uncertainties the future may bring.

Commonwealth Bank of Australia Ltd (ASX: CBA): The Commonwealth Bank of Australia has been a part of our economic and social landscape for over 100 years, and if there's one bank that will still be around 100 years from now, it's this one. With easily the largest market capitalisation of the major banks, this lead is reflected in its market share of various banking services: 25% of Australia's home loan market, 25% of Australia's retail deposits and 28% of Australia's household deposits.

Commonwealth trades at about $76 a share and delivers an exceptional 5.5% dividend yield.

Telstra Corporation Limited (ASX: TLS): Although ranked the third most valuable brand in Australia in 2013, you don't need that study to know how dominant Telstra is in Australasian communications. At a recent price of $5.40 a share, Telstra delivers a 5.6% dividend yield.

This yield is legendary among investors as being one of the most reliable things in an unreliable world. Telstra is not ignorant of this reputation and its 2014 report makes it clear that this strong, reliable dividend yield is one of its primary methods of delivering shareholder value now and well into the future.

Woolworths Limited (ASX: WOW): In the same study of valuable brands, Woolworths was ranked number one. With a little over 370 supermarkets in operation, Woolworths is firmly a part of Australia – though you don't need me to tell you this. With a recent price of $33.80, Woolworths Limited delivers a great 4.2% dividend yield.

These companies have been a part of our economic landscape for decades, and will be a part of our future too. One more thing that they have in common is a reliable and stellar fully franked dividend. The strength of these companies makes them all but immune to short-term downturns, and with their dividends, you know your money is working harder than it ever could in a savings account.

Perhaps the one downside to these three companies is that although they deliver strong dividends, they lack significant capital growth potential. In truth, companies that deliver strong dividends and have significant room for growth are as rare as hen's teeth. Investing in one early is truly a blue moon opportunity.

The post Why these 3 defensive stocks should be part of every portfolio appeared first on The Motley Fool Australia.

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Law firm Slater and Gordon Limited (ASX: SGH) has a long and successful history of serving Australia's personal law needs, and is probably one of the few law firms the average Australian could name off the top of their head.

Having grown its business across Australia through organic growth and aggressive mergers and acquisitions, Slater and Gordon has been busy replicating this success in the UK. Business expansion overseas is always accompanied by greater risks than expansion within home borders. However, since moving into the UK market in 2012, Slater and Gordon has become one of the biggest players in what is a fractured market.

A 5% personal litigation law market share may seem trivial, but in a market as fractured as the one in the UK, Slater and Gordon is proud to say that it is number one in market share in many areas of consumer law practices. With an attention to brand name and further expansion plans, Slater and Gordon is the hot pick to dominate the fractured UK personal litigation law market in the future.

With Slater and Gordon's exciting future in the UK, it's easy to forget that its practices in Australia are still strong. Slater and Gordon holds 25% of the market in Australia, the operations of which comprised 56% of its revenue for financial year 2014.

In other words, 44% of Slater and Gordon's total revenue in financial year 2014 came from its 5% slice of UK market share. This is extraordinary considering that its UK operations are still in their infancy and speaks volumes to the incredible growth potential of this stock.

It's clear that Slater and Gordon has a bright future ahead of it, and the share price this year has reflected this. In the last year, Slater and Gordon's share price has risen nearly 60%, a large portion of that gain coming in the weeks following the end-of-financial-year announcement that its net profit after tax had increased 40% on the previous year. On top of that, Slater and Gordon delivers a dividend yield of about 1.5%.

There is a special breed of highly sought-after stocks that deliver a solid, fully franked dividend, and also promise tremendous capital growth potential. Slater and Gordon is a prime example of this type of stock.

The post Here's why you should buy Slater and Gordon Limited today appeared first on The Motley Fool Australia.

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Out of all the developed nations of the world, Australia has one of the fastest rates of population growth. And this will not slow down – our population is expected to double by 2075. This presents some attractive possibilities for the long-term investor looking to take advantage of this trend.

Brickworks Limited (ASX: BKW): Although the current price of property has been called a bubble by some, there's no denying that having more people requires more places for those people to live.

Brickworks buys land in the path of urban development, manufactures house bricks on that land to supply the surrounding area at minimal transportation costs, then dismantles the plant and sells the land – usually at a significant profit. Brickworks trades at a trailing price-to-earnings ratio of 19 and yields a fully franked 3.1%.

DuluxGroup Limited (ASX: DLX): You don't often think of this company when the words 'growing population' crop up. We all know Dulux for its paint, which remains its largest segment.

Wisely, Dulux's management has established its paint as a premium product – something that will provide a buffer when the next downturn hits. And with other trusted household brands such as Selleys and Yates under its umbrella, Dulux is well placed to decorate the next generation of new houses in Australia while redecorating the old. Dulux trades at a price-to-earnings ratio of 19.27 and pays a fully franked 3.4% dividend.

Transurban Group (ASX: TCL): Traffic woes in Melbourne are a common occurrence, and reports of coming population growth are usually accompanied by a groan when people think of the rush hours of the future. And they're not mistaken – in the last year Transurban has recorded an increase in traffic on all but one of its toll roads and hence an increase in profit.

With an unrelenting attitude towards improving already amazing profit margins, and ever-expanding networks, when those millions of future Australians travel to and from work, chances are it'll be on one of Transurban's roads. With only a partially franked dividend and trading at a price-to-earnings ratio of 40, it is on the expensive side.

The post 3 stocks set to profit from our expanding population appeared first on The Motley Fool Australia.

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