With the biggest and best dividend stocks in the S&P/ASX 200 (INDEXASX: XJO) flying higher than ever and interest rates low and potentially staying low for a while, investors like you and I, should be positioning our portfolios to benefit from tomorrow's big dividend stocks.
The good news is, we don't have to go too far to find some well-priced growth stocks which look positioned to handsomely reward long-term shareholders with both dividends and capital gains.
- G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator which is currently pursuing an aggressive roll-up strategy which has enabled its share price to rise an incredible 102% in the past year. But the $1.8 billion company isn't done yet, with analysts' tipping earnings and dividends to nearly triple in the next two years.
- M2 Group Ltd (ASX: MTU) already pays a solid dividend (forecast to be 3.4% fully franked in the next 12 months), but it's also expected to notch up strong earnings growth in coming years. As the owner of internet service provider brands such as Dodo, Primus, Eftel and Commander, it has an enormous customer base which I believe will be key to its next wave of organic growth.
- Shine Corporate Ltd (ASX: SHJ) is a firm specialising in personal injury law and is now busy expanding outside Queensland, both organically and acquisitively. Earlier this week, the group recorded 27% profit growth and 48% revenue growth from emerging practice areas – a key growth market for the company. At today's prices it offers great value for those wanting both dividends and growth.
- Yellow Brick Road Holdings Ltd (ASX: YBR) is a junior diversified wealth management company run by former Wizard Home Loans founder, Mark Bouris. YBR is expected to turn its first profit in the next 24 months and is a great speculative buy for those willing to hold the shares for many years, whilst the company blossoms.
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I already own Yellow Brick Road and Shine Corporate and will likely add G8 and M2 to my portfolio in the near future because all have competent management at the helm and appear long-term winners.