Over the past ten years, returns from share investments have generated the highest returns amongst various asset classes – even beating real estate. The gross average stock market return before tax was an annual 9.2%. Congratulations if you beat that return consistently!
If not, then finding stocks that could give your portfolio a little "oomph" should be the next step. Here are three with share price gains well above that average yearly figure over just the last six months.
Suncorp Group Ltd (ASX: SUN), the general insurer, is up about 16% since March. Its banking division earnings were up and insurance saw improving margins. Its cost-cutting program helped make a special dividend possible, which was the third in three years. Total annual savings of $265 million should be achieved by 2016, so investors may see more of the same. It has a whopping 5.9% fully franked yield. Long term, I like Suncorp because it has a good record of increasing dividends.
M2 Group Ltd (ASX: MTU) had an impressive full year result and net underlying profit up 60% to $93.3 million. The telecom company that operates such brands as Dodo, Commander and iPrimus has risen about 25% in six months to $7.40 a share. Even in a highly competitive broadband and mobile service industry, it has strong organic subscriber growth. It launched its Dodo NBN (national broadband network) and has expanded business into utility payments to bundle services customers want.
Premier Investments Limited (ASX: PMV) has a number of well known brands like Just Jeans, Jay Jays, Portmans and the very successful Smiggle stationery store that is expanding widely in the UK now. The retailer's stock jumped 8.14% today with its full year results showing strong store sales growth. All of its brand businesses showed like-for-like sales growth and total underlying profit before tax rose 10.3%. That one-day jump brings the total share price gain in the last six months to 30.9%. Not bad at all when other retailers like Myer Holdings Ltd (ASX: MYR) are still struggling.
The good thing about these three is that there is still reasonable growth potential for each. You haven't missed out on what they could offer over the next few years. I would lean towards Suncorp for a balance of share price gain and dividend income growth.
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