MENU

3 growth stocks worth a nibble

Credit: Andrew Stawarz

Food stocks are a great way to get exposure to a defensive industry. Everyone has to eat, so if you can find the right stocks to take advantage then your portfolio should benefit.

Here are three of my favourite food stock ideas on the ASX:

Rural Funds Group (ASX: RFF) is the only real estate investment trust (REIT) that focuses purely on agricultural property.

It has a diversified portfolio of farms including poultry, cattle, almond, macadamia, vineyard and cotton. It also has great diversification with the farms spread across the four states of South Australia, Victoria, New South Wales and Queensland.

I think it’s the best REIT on the ASX and it’s currently trading with a distribution yield of 5.39%.

Collins Foods Ltd (ASX: CKF) is a large franchisee of KFC restaurants in several Australian states.

The main reason I’m interested in Collins Foods is its expansion overseas. It is growing in the Netherlands and Germany, both of which could be huge growth markets.

It’s currently trading at 17x FY16’s earnings with a grossed-up dividend yield of 4.23%.

Costa Group Holdings Ltd (ASX: CGC) is a large grower of fresh food with operations in Australia, China and Morocco.

It has a diverse range of produce including tomatoes, avocadoes, berries, citrus fruit and mushrooms. Fresh food has been growing in popularity every year and I think this will be shown with Costa’s coming results.

It’s currently trading at 60x FY16’s earnings with a grossed-up dividend yield of 2.98%.

Foolish takeaway

I think all three of these stocks are worthy of being in a Foolish portfolio, however I’d try to buy Costa at a cheaper price.

I think Collins could be a good option for growth, while Rural Funds Group should be a good option for income.

If none of these stocks are to your taste, these growth stocks should be much tastier prospects.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of RURALFUNDS STAPLED. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.