They say your investments will perform better from "time in the market" than "timing the market." If you give them time to mature, they can grow strong.
On the other hand, if you are jumping in and out of the market, you'll most likely do so at less-than-ideal times, more from fear and greed than anything else. You might gain some, but you give up the upside opportunity of extended share price increases.
You could even be right about the stock, yet wrong about the timing. After you buy it, it barely budges. Later, you get frustrated and sell it off- only to see it finally move after you sell it.
Here are three high-yield stocks that could be worth buying and holding for the long-term. Each has strong growth prospects and could deliver solid gains over the next five years.
Super Retail Group Ltd (ASX: SUL) is the specialty retailer operating Supercheap Auto, BCF, Rebel Sports and Amart Sports. Retail trade in general has been weak and this stock is down around 46% since November 2013. The market negativity may be overdone, so if post-Christmas retailing picks up, it could start recovering quickly. It pays a fully franked 5.4% yield.
Leighton Holdings Limited (ASX: LEI), the engineering and construction company was down to about $16.00 a share in early 2014, but has steadily risen since then. Leighton is selling off some of its businesses including John Holland to streamline the business and generate money to strengthen its balance sheet. The company is not done just yet, but is making progress. While contract mining is still weak, winning some of the tenders for the Federal and state infrastructure projects to be started over the next five years could give Leighton the revenue and growth it needs.
Back up to around $23 a share, it is paying a 4.7% yield partially franked.
Insurance Australia Group Ltd (ASX: IAG) is a leading general insurer that is performing well. IAG recently purchased the insurance underwriting business of Wesfarmers Limited (ASX: WES) and expects revenue to rise about 20% in the 2015 financial year, mostly thanks to the acquisition. It may take some time to fully integrate the new business and get all the synergies out of it. The acquisition has strengthened IAG's market leader status, and a bonus is the that the insurer pays a huge 6.0% yield fully franked and trades at a 12 times P/E ratio.
