Two of the commonest mistakes to avoid when investing are paying too much for fast-growing companies, or paying at all for companies that seem cheap, but in reality have low to no growth.
The best buys to superpower returns are companies with strong prospects on reasonable valuations. Throw in some juicy dividends and you have the recipe for a blue-chip retirement. Here are four of the best to work towards that goal today.
Flight Centre Travel Group Ltd (ASX: FLT) is a travel business expanding into the large US market having already proven highly successful in the UK market. With brand power and the increasing benefits of scale it's the type of business that ticks all the boxes for growth-oriented investors. Selling for $47 it trades on just 16.2 times FY 2015's projected earnings, with a 3.1% dividend yield.
Share registry services provider Computershare Limited (ASX: CPU) is another business with scale and competitive advantages to keep growing fast into the future. Because of the huge volumes of data it administrates for clients its revenues tend to be sticky and recurring, with potential to grow as financial services exponentially expand worldwide. Selling for $12.55 it trades on 17.8 times FY 2015's projected earnings with a 2.3% dividend yield.
Salmon is a food product with limited supply and growing demand, which means salmon farmer Tassal Group Limited (ASX: TGR) looks an attractive opportunity with plenty of operating leverage. It intends to continue capital expenditure plans over the next five years to grow its production capabilities and is already enjoying the benefits of a more focused cost structure. Selling for $3.90 Tassal trades on 16 times FY 2015's projected earnings with a 2.7% dividend yield.
Foreign exchange broker Ozforex Group Ltd (ASX: OFX) looks another decent growth prospect as it takes market share from banks that charge relatively high trade execution spreads to retail and business clients. The main obstacle to OzForex's continued growth is if the banks or others decide to seriously compete with it on fees and spreads. However, if this scenario were ever to play out OzForex would likely have been so successful that today's shareholders would be laughing all the way to the bank. Selling for $2.69 OzForex trades on around 25 times analysts' projections for FY 2015's earnings with a 1.9% dividend yield.
