Have you started thinking about your New Year's resolutions?
Maybe it's your goal to get fit, start a new job or go on a holiday to a place you've never been.
Mine's a little boring and the same as ever: Spare whatever money I can and buy great companies on the share market.
To do it I create a list of my favourite companies and when my monthly pay cheque clears, I transfer money into my stock broking account and make an investment.
It may only be a small amount of money each month but over the long run, with time compounding my returns, I hope it can become something truly life changing.
Right now I've got a number of high quality companies firmly on my buy list. They each offer long-term growth potential and modest but increasing dividends.
1. Legal Eagle: Slater & Gordon Limited (ASX: SGH) is Australia's leading personal injury law firm, with around 25% market share. However it's the group's huge growth potential in the UK – where it has 5% market share – which makes me think it's a standout buy at today's prices. It is expected to pay a dividend equivalent to just 1.5% in the next 12 months, however analysts are forecasting significant growth in both earnings and dividends per share in the next three years.
2. Health and Funness: Ardent Leisure Group (ASX: AAD) is, like Slater & Gordon, leveraging off its local success and taking its operations abroad. Ardent is the owner of brands such as AMF and Kingpin Bowling, Goodlife Health Clubs and Queensland theme parks Dreamworld and White Water World. In the United States it owns Main Event, a solidly growing entertainment business which combines billiards, bowling, laser tag and more. It offers a 4.4% dividend yield.
3. Telecommunications: M2 Group Ltd (ASX: MTU) is the owner of brands such as Dodo, Primus, Eftel and Commander. After huge success growing acquisitively, the company is focused on achieving synergies in its new businesses, paying down debt and growing organically. Moving forward M2 will become a diversified utility provider; offering everything from home phones, internet, electricity, gas and insurance. It is forecast to pay a 3.3% fully franked dividend.
4. Childcare: G8 Education Ltd (ASX: GEM) is another Australian company which has successfully undertaken rapid acquisitive growth. In the past five years, its share price is up over 4,000% and counting. It now owns 440 childcare centres throughout Australia and Singapore with another 37 contracted. However it is by no means 'ex-growth'. It controls just 6.5% of the market in Australia and boasts a strong debt profile, so I'm anticipating solid growth over the long term.
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