Slipping a cheque or some cash into your grandchild's birthday card can be a nice way of helping them save for the future, but there are ways you can have a much more lasting effect on their financial independence. Although the full benefits might not be as immediately appreciated, buying stocks for the little tackers and letting their value compound over the years could be one of the greatest ways to give them a head-start in life.
While it's not uncommon for investors to head straight for the traditional stocks, like the big four banks or Telstra Corporation Ltd (ASX: TLS), I believe there are far greater opportunities to take advantage of. Below are four companies which I believe are presenting as excellent value today which could reap fantastic rewards over the coming years….
- Shine Corporate Ltd (ASX: SHJ) is an Australian junior legal firm which specialises in Personal Injury cases. Not only is it beginning to explore other practice areas including environmental law and professional negligence, it is also expanding quickly across Australia which should help drive earnings for years to come.
- Greencross Limited (ASX: GXL), a provider of veterinary services, is quickly growing its footprint (or paw print) across Australia. Its recent acquisition of pet retailer City Farmers saw its market share rise to roughly 7.5% and it is still striving for 20% market dominance. As revenues and earnings continue to grow, I expect Greencross to be a big winner for shareholders who buy today.
- RCG Corporation Limited (ASX: RCG), which owns The Athlete's Foot shoe store chain, has delivered impressive growth recently as it continues to focus on solid margins and superior customer service levels. In addition to solid growth, it offers a reliable grossed up dividend of 10.4%.
- Finally, Insurance Australia Group Ltd (ASX: IAG) is another solid bet for the long term. As one of Australia's most well known insurance companies (it owns brands like CGU and NRMA), Insurance Australia Group is trading at a very welcoming price of $6.10. In addition, it offers a tantalising 9.1% grossed up dividend yield.
