3 stocks to buy in your 40s

Three companies expecting steady, low-risk growth over the next 20 years.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The types of companies you will be targeting for your portfolio in your 40s will be a lot different to the kinds you would have added in your 20s. It's likely you will be more established and have a larger asset base behind you after years of working.

A key focus in your 40s will be to protect those assets while making them do the hard work to grow. Quality companies with solid growth plans will be the order of the day. Here are three companies that fit the bill.

Santos (ASX: STO)

Oil and gas producer Santos has passed through the biggest risk phase of growth with its major projects PNG LNG and Queensland's GLNG and has forecasted a healthy 6% annual compounded growth rate through to 2020.

The company has advised it will review its dividend policy over this time and is expected to offer a higher distribution to shareholders as the company's cash flows grow substantially.

AMP (ASX: AMP)

Adding AMP to your portfolio will bring diversification across banking, wealth management and investment services. The company has a sound reputation with consumers, is expanding into Asia and is set to benefit from the ever-growing pool of retirement funds that require management.

Despite a poor first half performance in FY13, a reasonable investing horizon will give time for the company's potential to show through and really put your invested dollars to work. The 5% dividend yield while you wait is a respectable bonus.

Coca Cola Amatil (ASX: CCL)

Let's face it, a brand that you have known and grown up with for your 40+ years is definitely one with the staying-power to be considered for your portfolio. Coca Cola's venture into alcoholic beverages, as well as its push for growth in Southeast Asia shows it has room to grow yet, and the strong brand recognition it holds supports strong cash flows and a growing dividend.

The recent weakening in Coca Cola's share price makes it one to watch.

Foolish takeaway

As you ease into your 40s you will focus more on protecting what you have and building your nest egg for the future. Growth is still important and, just like your appreciation for a fine single-malt, quality should be a priority.

Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned. 

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »