2 stocks I'd buy with $10,000 today

These two stocks pay dividends and offer capital growth.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Buying quality is the secret to successful investing so here are two of the best quality stocks around I would look to buy today.

Sirtex Medical Limited (ASX: SRX) supplies its liver cancer treatment SIR-Spheres to over 1,000 hospitals in 40 countries. Despite this, 2016 sales represented a market penetration of just 2% for SIR-Spheres and so Sirtex is only just getting started in its potential growth trajectory.

Earnings-per-share (EPS) have risen from 30.7 cents in 2012 to 93.7 cents in 2016 and shares are up 485% over the past five years. Although Sirtex currently trades on a demanding historical price-to-earnings ratio (PER) of 29, I believe it presents a good long-term investment opportunity given its defensive nature and exceptional growth profile. It also pays a 1.9% dividend yield.

Altium Limited (ASX: ALU) is fast becoming the global leader in printed circuit board (PCB) design software. Like Sirtex the stock has recently been sold off and currently trades 20% below its recent highs. It also shares attractive qualities with Sirtex of having low capital requirements, high growth prospects and defensive earnings.

Altium trades on a PER of 34 based on 2016 results, but sales were 7% higher than revenue last year indicating that higher profits are likely in 2017. The company has been successful in winning market share in an industry that is likely to grow for many years due to the emergence of the internet of things (IoT). The stock pays a 2.5% dividend yield.

Motley Fool contributor Matt Brazier has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »