A goal for many investors is probably to have a portfolio stuffed full of blue-chip stocks twenty years from now. You may not be retiring in that time, but it would be a great feeling knowing you were set up for a richer future.
Which stocks will be those blue-chips one or two decades from now? Will it be the big four banks, the big miners, or others?
More importantly, can you pick them up cheaply to really make spectacular long-term gains?
Basically, some of the companies that will be paying out big dividends from their large businesses many years from now are the nimble and expanding mid-cap stocks of today.
If I looked out on the business horizon for the new leaders of tomorrow, I think I would see the two stocks below among them.
1) Perpetual Limited (ASX: PPT)
This fund manager now has $30.7 billion of funds under management and had a 33.8% net profit gain in FY 2014. There will always be ups and downs in the financial markets, but expert investors like Perpetual can build up steady gains and reinvest repeatedly over long periods of time.
The company can also take advantage of growth in other world regions through its international investments. It pays an attractive 4.5% yield fully franked. Growing financial service companies are usually good candidates for future blue-chips.
2) Carsales.Com Ltd (ASX: CRZ)
It is sometimes hard to speculate as to how internet related companies will be in the future since technology is always changing. However, Carsales.Com has quickly set itself up as the leader of car sales search websites. And not just in Australia, either. It is already involved with the number one websites in such countries as South Korea and Brazil. The company is also expanding its services by creating websites that cater to other vehicles and related products like tyres and vehicle finance.
In FY 2014, its net profit rose 14%, but what is really amazing is its 40.5% net profit margin. That is the kind of business I can see growing well for many years both domestically and abroad.
