Living costs keep grinding higher which means whether you are close to retirement or trying to build your wealth for what might seem like the distant future it is vitally important that you earn a decent return.
At the very least this needs to be in line with inflation – just to keep up with those rising living costs – but of course given the risks associated with owning equities an even higher return is rightly demanded.
Here are three stocks that from current prices should arguably be able to provide investors with returns that don't just beat inflation but also provide decent risk-adjusted returns.
- Prime Media Group Limited (ASX: PRT) operates television and radio broadcasting services throughout regional NSW and Victoria. The group has a long-term affiliation with leading free-to-air broadcaster Seven Network. With a forecast dividend of 7.1 cents per share (cps) in the current financial year, the dividend yield alone can provide shareholders with a yield of 8.1%.
- Mayne Pharma Group Ltd (ASX: MYX) has been on a tear since announcing the acquisition of the US-based Metrics Inc business in October 2012. The company is a specialist manufacturer of pharmaceutical drugs and boasts a portfolio of branded products as well as generics. The share price has gained 75% in the past two years, but there could be plenty more growth ahead if the company continues to deliver on its promises.
- Village Roadshow Ltd (ASX: VRL) operates entertainment assets which span theme parks, cinema exhibition, film distribution and film production. The company has experienced a fall in its share price recently with the stock down 23% in the past six months. Despite this recent pull back, the stock is still up over 180% in the last five years. Theme parks in particular offer significant growth opportunities for the group with the late 2013 opening of 'Wet 'n' Wild' in Sydney set to provide earnings growth in the current financial year and the potential for expansion into Asia also an important driver.
