It's been a long year to nowhere for the ASX. Yes, there were peaks and valleys, like driving in the Blue Mountains, but after 12 months it brought us back to almost where it took off from.
One year ago the S&P/ASX All Ordinaries Index (ASX: XAO) (Index: ^AORD) closed at 5,151 points, or 90 points away from the index close of 5,241 on Wednesday. Just within the past month or so, it has sold off 7.3% and is close to crossing the 10% market correction line.
The market could slip down some more still, but that just opens up more buying opportunities for our favourite stocks at better price points.
So get ready for Mr. Market to get gloomier by looking for the two types of stocks listed below. Included are some examples to get things rolling, but there are definitely more to consider.
— Secular growth stocks
Stocks that tick along at a steady rate despite the ups and downs of the economy have secular growth, as opposed to cyclical growth which is driven by a rising economy. Examples of these are:
Sonic Healthcare Ltd (ASX: SHL) Sonic Healthcare is involved in medical diagnostics and pathology. People still need to see a doctor in any economic climate and pathology is the first point of service for most patients.
TPG Telecom Ltd (ASX:TPM) Like power and gas utilities, many people are dependent on broadband and telecommunications on a daily basis. TPG Telecom can offer very high-speed broadband service at a reasonably low price because it operates its own extensive network infrastructure.
— Individual power engines
These stocks are in unique growth stages, building upon their own momentum. It could last for years since the initial growth spurs on and funds even more growth. Examples are:
SEEK Limited (ASX: SEK) The leading job search website is going outside of Australia to tap into developing countries around the globe. China, Brazil and South East Asia are just some of the markets it's working in. Most of its revenue is still from Australia, but that mix will start to shift in time. This is one growth story I'm definitely watching.
Greencross Limited (ASX: GXL) This unassuming veterinary and pet supplies service provider has grown its stores and clinics from 93 to 298 during FY 2014 and maybe a lot of investors didn't know it. The big move was the merger with Mammoth Pet Holdings, which operated the successful Petbarn chain of pet supplies. The two businesses can promote each other as well for good growth synergy.
Part of any investment plan is to build in protection for those rainy days that always come. The third type of stocks are solid dividend payers.
Dividend payments come regularly and can make a good portion of your average share return. Top Motley Fool investment advisor Scott Phillips has just named his #1 dividend-paying stock for 2014-2015.
With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.
