I'm a strong believer that investing in equities is by far the best and easiest way to build wealth for your future – as long as you can handle the short-term volatility. Investors are often faced with the choice of growth or relative safety when choosing to invest in stocks – the larger the company, the more stable it is, but that means it's also harder to grow. That's why when there are stocks that promise explosive growth while also offering relative safety, it's something to get excited about.
This goldilocks condition of both relative safety and growth prospects could be found in these three stocks.
Slater and Gordon Limited (ASX: SGH)
Law firm Slater and Gordon is perhaps one of the best-known law firms in Australia – and it's certainly one of the biggest. Since building branches all across Australia, Slater and Gordon has been busy replicating its success in the U.K. Since 2012, takeovers and expansions into the U.K. have delivered great returns for the company and its investors. In the last year, the share price has risen nearly 60% and at around $6.00 a share today, delivers a 1.4% dividend fully franked.
Vocus Communications Limited (ASX: VOC)
Telecommunications company Vocus has experienced extraordinary growth recently, rising from $2.60 per share a year ago to about $5.80 a share. Growth in Vocus's share price in the last year often came following acquisitions and expansions of interests. Whether or not the growth that Vocus has experienced so far will continue is in the hands of the management – safe hands if the past year is anything to go by. With little indication that the management is content to rest on its laurels, Vocus looks set to grow even further in the future.
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel Management is in the business of managing corporate travel, and has a presence not only in Australia and New Zealand, but also Asia and the U.S. It's Corporate Travel Management's U.S. expansion that has been the focus in the last year, and has subsequently delivered handsomely – a share in Corporate Travel Management used to be worth about $5, nearly doubling in the past year to $9. This 80% growth was delivered to shareholders along with a solid, fully franked 1.6% dividend yield. To be able to deliver both exceptional returns and a healthy dividend is exciting indeed, and there's little indication that this trend will change for the worse.
