Even during times of rising markets and positive outlooks it can be reassuring to know that your portfolio has a sturdy base of resilient companies should something unexpected happen.
The following three companies are from a range of industries and have proven themselves as reliable future earners.
Santos (ASX: STO) produces energy for customers around the world and is set to go from strength to strength over the next five years. The oil and gas producer is nearing the completion of two significant projects; Papua New Guinea (PNG)LNG and Queensland's Gladstone (G)LNG. This will contribute to significant earnings growth.
Santos has forecast a healthy 6% annual compounded growth rate through to 2020 and has advised it that will review its dividend policy as cash flows from the projects start to come online.
The insurance industry has some mixed performers, but has been around for centuries and is known for strong cash flows and dividends. Insurance Australia Group (ASX: IAG) has been among the best performing insurers over the last two years and this is set to continue in 2014.
Guidance provided by the company last year noted that it is on track to achieve a full-year insurance margin of 12.5-14.5%. It also expects gross written premium growth of 5-7%. IAG has a strong strategy in place to maximise earnings from its current market positions across Australia and New Zealand, as well as a growth strategy to receive 10% of gross written premiums from Asia by 2016.
Also chasing growth in Asia is Coca Cola Amatil (ASX: CCL), a company whose trademark product has roots as far back as the late 1800s. The company grew earnings a solid 15% out of Indonesia in 2013 and its push for growth in Southeast Asia has room to grow yet. As always, it's supported by strong brand recognition.
Coca Cola's 12-month share performance has been soft, down 11%, but over the last five years shares have increased by over 30%. That's not including the considerable dividends the company pays out.
In 2013 Coca-Cola maintained its interim ordinary dividend of 24 cents per share (cps) and issued a special unfranked dividend of 2.5cps, bringing the dividend up to 26.5 cps. That's 10.4% higher than the prior period.
Foolish takeaway
These three companies cover a range of industries and are among the best in their respective fields. Growth may come at a moderate pace, but the underlying products are resilient and likely to maintain solid performance if the market's optimism turns.
