A new year brings new challenges as well as opportunities. Foolish investors should still keep their eyes on the long term. The S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) didn't offer much gains throughout 2014. 2015 may not be significantly better, either. That shouldn't put you off from building up a superior investment portfolio, though.
Good stock picking can return better results if you stick to quality companies with improving stock stories. Here are two well-known companies with promising growth potential that could contribute to better returns for your portfolio.
SEEK Limited (ASX: SEK)
The seek.com.au job search website operator is seeing strong growth in its overseas businesses. Already the firm market leader in Australia, establishing the company as a strong player in the Asian region is also proceeding well.
Several recent acquisitions have expanded the company's presence in Asia, Brazil and Mexico. SEEK is forecasting strong organic growth in underlying revenue and earnings for these regions in financial year 2015.
Overall, SEEK's total earnings are forecast by analysts to grow about 22% on average yearly over the next two years. The stock pays a 1.8% fully franked yield and trades at 31 times earnings. That's not incredibly expensive compared to expected growth, so having a position may be a good long-term move.
Telstra Corporation Ltd (ASX: TLS)
After completing negotiations for the turnover of its phone copper line network to the National Broadband Network Company, the company should be looking at a good cash flow over the coming years while the national broadband network (NBN) is rolled out.
Telstra may also receive work contracts for the NBN's design and implementation, providing another ongoing income stream. This will benefit the company's business enterprise and cloud computing expansion plans in Asia. Telstra is also making big strides in its newly developed e-health division, combining high-speed telecommunications and data management with healthcare.
The full potential of the overseas expansion may take some time, so investors should be willing to hold a position for the mid to long term. The stock yields a solid 4.9% yield fully franked, so that could provide steady dividend income along the way.
