Overnight on US markets the Dow Jones and the S&P 500 both retreated on concerns over the ongoing hostilities in Iraq. While these two indices fell 0.7% and 0.6% respectively what investors really need to keep in mind is that the US economy on balance appears to be doing well. The economy is growing and the stock market is at record highs.
Turning to Australia and despite the adjustments underway within the economy from the slowdown in the mining sector, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) remains near a six-year high. Importantly within the ASX there are still a number of great opportunities to purchase fast growing quality stocks, consider these three for example.
Navitas Limited (ASX: NVT) is a major provider of educational services to both domestic and overseas students. The company boasts many years of growth in revenues and earnings– its share price has followed and is up 171% in the last five years! Despite a forecast (according to one major broker) that earnings growth will dip to just 6% this year, stronger growth of 21% is forecast in 2015.
Growing earnings often means growing dividends and that's forecast to be the case for Navitas' shareholders too. In 2015 the dividend is forecast to grow to 20.4 cents per share (cps).
IOOF Holdings Limited (ASX: IFL) is benefiting from the continued growth in demand for the financial advice and financial management services which the company provides and is also benefitting from its growth by acquisition strategy. IOOF is forecast to boost both its earnings and its dividend at double digit rates over the next two financial years. By FY 2015 the company is forecast to be earning 60 cps and paying out a dividend of 55 cps.
Finding investment opportunities isn't meant to be easy and it can at times require looking at unusual or less well-known companies. Hills Ltd (ASX: HIL) is one of these. While its claim to fame was the Hills Hoist washing line, today Hills' revenues are based on technology and communications solutions. EPS are forecast to grow over 20% for the next two years with the dividend rising to 8.8 cps in 2015 from just 3.3 cps in 2013.
