Make your first resolution of the New Year to smash the market's return.
You can go after the growth stocks or throw a couple high-yield income stocks into the mix. A share price gain plus dividend yield that exceeds 12% is the target. It isn't incredibly difficult to do, but it does take time, so starting now gives you a head start for the whole year.
Here are two stocks that can help you on your way. One is an excellent growth stock and the other is solid earner and good dividend income source.
IOOF Holdings Limited (ASX: IFL)
The financial services company provides portfolio administration services such as superannuation, investment trusts and financial planning. After acquiring the wealth management company SFG Australia in August, IOOF Holdings' funds under management, administration advice and supervision (FUMAS) now stands at over $142.9 billion.
FY 2014 net earnings were up 12.6% and consensus forecasts are for a further average 12% annual earnings growth in the next two years. On top of that, the stock yields 5.5% fully franked, so together this stock could meet our target rate. Superannuation and retirement investing are of high priority for many people, so the company's services are much in demand.
SEEK Limited (ASX: SEK)
Well known as a growth stock, the operator of the job search website seek.com.au has a commanding lead in the job placement market, with other job websites only attracting a small fraction of SEEK's monthly viewers. Its strong brand and extensive listings of jobs keep job hunters coming back. Now, the company is focusing on extending that record of high growth into Asia, where it has subsidiaries that cover the job markets of a number of highly populated countries like Malaysia, Indonesia and the Philippines.
After SEEK raised net profit in FY 2014 21%, analysts are looking for earnings growth of about 22% annually over the next couple years. The stock trades at 32 times earnings and has a 1.8% yield fully franked. I like this stock because it is a steady grower and could establish itself as a market leader in these developing countries.
