Looking to invest in quality S&P/ASX 200 Index (ASX: XJO) shares with strong long-term growth potential?
I think the following 3 ASX 200 shares are worthy candidates for above-average share price growth over the next 5 years. Each share also has a strong and proven business model across a range of markets.
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Bapcor Ltd (ASX: BAP)
Bapcor is the leading second-hand auto parts distributor in Australia and New Zealand. Additionally, an expansion into Thailand is aimed at providing a launching pad to make headway in the Asian market.
I think its recent capital raising of $236 million from institutional and retail investors positions the company well to navigate through any prolonged downturn caused by the coronavirus pandemic. Bapcor also believes the capital raising puts it in a strong position to execute its 5-year growth strategy.
Weaker trading conditions were experienced in late March and early April. However, coronavirus restrictions are now easing. I believe trading is therefore likely to pick up again quicker than anticipated.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Domino's has an aggressive expansion plan. Assuming it executes well on this, I believe the plan positions Domino's well for strong sales growth over the next 5 years.
Compared to other fast food outlets and restaurants, the company's revenue base has proven to be fairly resilient during the coronavirus crisis so far.
In its most recent market update in late April, Domino's revealed that its chain of stores in France were progressively reopening. Additionally, stores in Japan and Germany have maintained strong sales growth, while there has been minimal impact on trading in Australia.
Domino's doesn't typically have a sit-down service and any in-store pick-up by patrons is normally very quick. In addition, Domino's has an extensive home delivery service which has experienced a surge in demand in response to lockdown restrictions.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I am attracted to 'Soul Patts' as a long-term investment. I like its high level of diversification across a broad range of industries, which range from pharmacies and telecommunications to mining and building products.
Soul Patts also keeps plenty of cash on its balance sheet. This places it in a strong position to capitalise on any investment opportunities that crop up. On the flip side, this cash can be used as a buffer in difficult operating times, such as those faced now.
Soul Patts funds its dividends from the cash it receives from its investment portfolio. The company expects this to be in line with the previous year, supporting its ability to maintain its stellar dividend record and pay a growing dividend in FY20.
