With so many great companies gracing the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO), it can be hard to know what to do with that spare $10,000 earning a measly 3% in your savings account.
A better way to grow your wealth for years to come is to put the money to work buying strong companies that should grow and grow, helping you to a worry free retirement. If I had $10,000 today, here are four solid, growing companies I would buy at current prices:
1. SKYCITY Entertainment Group Limited-Ord (ASX: SKC)
SkyCity has a significant competitive advantage as a monopoly and niche casino operator. This position is especially valuable given the significant growth forecasts for the company's flagship Auckland hotel and casino, as well as the current Adelaide Casino expansion.
SkyCity pays a regular, consistent dividend yielding 4.8% and this is likely to rise over time as the company benefits from approved increases to gaming tables and poker machine numbers.
2. Santos Ltd (ASX: STO)
Santos is one of my favourite overlooked dividend stocks and is set to benefit from the increasing demand for natural gas over the next ten years. Two of the company's biggest assets are the PNG LNG operation which Santos owns in conjunction with Oil Search Limited (ASX: OSH) and its stake in Queensland's GLNG project.
Both projects are on track to deliver a flood of cash as production rises from this year onwards.
3. Ozforex Group Limited (ASX: OFX)
OzForex shares were savaged in May when the company announced its full year result, but the company beat prospectus profit estimates and reported a huge NPAT margin of 22% for the full year. This put the company on my watchlist and I see the company as having a bright growth future.
4. Contango Microcap Limited (ASX: CTN)
Finally, adding microcap investment company Contango Microcap Limited (ASX: CTN) to my portfolio is a perfect way to gain exposure to a wide range of small, but highly prospective companies in one tidy diversified package.
The company has an impressive record of beating the ASX All Ordinaries, and is a great candidate for my $10,000 to hold over the long term. Buy for the growth, but stay for the dividend.
