3 top ASX stocks: BHP Billiton Limited, Cochlear Limited and Santos Ltd

These 3 stocks look set for exceptional performance: BHP Billiton Limited (ASX:BHP), Cochlear Limited (ASX:COH) and Santos Ltd (ASX:STO).

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BHP Billiton Limited

With the RBA cutting interest rates by 0.25% already this year, dividends are set to become a major consideration for Aussie investors. That's especially the case if further interest rate cuts lie ahead.

So, stocks such as BHP Billiton Limited (ASX: BHP) could be beneficiaries even though miners are not traditional income stocks, BHP yields an enticing (and fully franked) 4.3%. However, there's more to BHP than just a headline yield with it having an excellent track record of dividend per share growth. In fact, dividends have risen at an annualised rate of 15% during the last 10 years and are forecast to increase by 12% per annum over the next two years.

As such, BHP could become more in-demand and see its share price soar over the long term.

Cochlear Limited

With the Aussie economy going through a difficult period at the present time, investors could be more attracted to companies that offer growth at a reasonable price. As such, Cochlear Limited (ASX: COH) could become more in vogue through 2015.

A key reason for this is that Cochlear has a price to earnings growth (PEG) ratio of just 0.94. That's appealing on an absolute basis but, when compared to the ASX and to the wider healthcare and equipment services sector it makes the stock even more desirable. For example, the ASX has a PEG ratio of 2.34, while Cochlear's healthcare sector has a PEG ratio of 2.2.

So, despite rising by 14% since the turn of the year, Cochlear could be worth buying.

Santos Ltd

Now could be a good time to buy high beta stocks such as Santos Ltd (ASX:STO). In fact, with the RBA expected to drop interest rates even further, it could provide the ASX with another boost that has seen it rise by 9% since the turn of the year. And, with Santos having a beta of 1.34, its shares should (in theory) move by 1.34% for every 1% change in the level of the ASX.

In addition, with Santos having a price to earnings (P/E) ratio of 15.6 (versus 16.3 for the ASX), it could prove to be a strong performer if the worst of the global oil price falls are now behind the market.

Motley Fool contributor Peter Stephens owns shares in BHP Billiton.

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