As the year comes to an end, investors should take the opportunity to trim some of the fat. In their share portfolios, of course!
After all, cutting out the bad investments or – perhaps more importantly – the really good ones, is a vital component of investing successfully year after year.
For example if you own blue-chip stocks that have run hard in 2014 – such as Telstra Corporation Ltd (ASX: TLS) and Australia and New Zealand Banking Group (ASX: ANZ) – it may be time to think about selling some shares and consider buying more small-caps.
3 small-caps to get you there
If you're looking to set yourself some financial goals in 2015, here are three sizzling small-cap stocks you should consider adding to your portfolio or watchlist.
1. Money3 Corporation Limited (ASX: MNY) – Money3 is a $162 million small and micro-sized loan provider for individuals in need of short-term financing. In the future, the group will continue its store rollout with an eye for larger secured credit lines, such as automotive financing. Up 56% in 2014 alone, Money3 has strong momentum moving into 2015 yet is surprisingly cheap and boasts a juicy 3.1% fully franked dividend.
2. Nearmap Ltd (ASX: NEA) – Nearmap is a technology company with significant upside potential. It provides aerial photography and related applications for private and commercial use throughout Australia. Think of it like Google Maps, only with more frequently updated and much higher resolution images. The company has recently swung to profit and its share price has responded, up 24% for the year.
3. Shine Corporate Ltd (ASX: SHJ) – Shine is an Australian law firm specialising in personal injury litigation. The group plans to grow both acquisitively and organically and is well funded to do so. Despite climbing 90% since it listed on the ASX in early 2013, Shine is well priced for investors who have a long-term view. Although it's currently offering a dividend yield of just 1.2%, it has a dividend cover over 4 times and payouts will likely rise with higher earnings.
Our #1 stock idea for 2015 – Yours FREE!
The New Year is a better time than ever to set yourself some financials goals and reassess your current portfolio weightings. I already hold shares of both Nearmap and Shine in my long-term portfolio and believe they continue to represent compelling investments at today's prices. However our top analysts have just identified their favourite stock for 2015, and you should know about it!
