Long-term investing trumps all other types of share market strategies.
Not only is it possibly the most financially rewarding, it's also one of the simplest investment strategies.
That's because individual investors can set aside a small amount of time to do some research and, if they're satisfied with the company, hold it into perpetuity.
This allows the company to work for the investor by growing earnings and paying out juicy dividends along the way.
So with that in mind, here are four S&P/ASX200 Index (INDEXASX: XJO) companies which you could consider adding to your long-term portfolio.
- G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator. In the past five years, its share price has risen an incredible 5,800% as it pursued an industry roll-up strategy. Since 2010, its total number of centres has increased from 77 to over 365! However analysts are tipping the good times will continue with both earnings and dividends tipped to rise significantly over the next two years.
- Cover-More Group Ltd (ASX: CVO) today announced a strong set of full-year results. The travel insurance provider notched up 51% growth in pro-forma NPAT and 20.1% growth in pro-forma gross travel insurance sales. Like G8, Cover-More's earnings and dividends are expected to rise strongly over time.
- M2 Group Ltd (ASX: MTU) is also trading higher today following a 36% increase in earnings per share and the declaration of a 14.5 cent final dividend. With plenty of growth left in the domestic market, M2's shares trade cheap on a trailing dividend yield of 3.6% fully franked.
- Slater & Gordon Limited (ASX: SGH) has been another strong performer over the past few years with shares up 85% in the last 12 months alone. With the leading position in the domestic personal injury market, Slater & Gordon is expanding into personal legal services and acquisitively growing in the UK market. Although its 1.3% fully franked dividend appears unimpressive, compared to other stocks, it makes up for it with superior long-term growth potential.
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