The Motley Fool

5 stocks to buy in 2014

2014 could be the year you set yourself free. Free from management fees and costly financial advice. This year you can take control of your own finances and invest in shares for the quickest route to financial freedom.

So in 2014, take advantage of the long-term upward trend of the S&P/ASX 200 (ASX: XJO) (^AXJO) and start investing your own money. If you’re looking for investment ideas, here’s five buy ideas for investors who want to reach greater financial freedom in the next 12 months.

Cash Converters (ASX: CCV) is a stock which is trading at a Christmas discount despite growing earnings by an average of 12.9% each year over the past decade. It pays a juicy fully franked dividend and has tremendous upside potential. After dropping to $0.77, it is now my biggest stock holding going into 2014.

Over the Christmas period, millions of people flocked to Australian shopping centres to buy gifts and take advantage of Boxing Day sales. With consumer confidence set to rise in 2014, I’m betting retail chains such as Myer (ASX: MYR) will finally get the Christmas present they deserve. Myer appears to be trading on good valuation metrics and pays a strong fully franked dividend.

With the rise of the stockmarket, more money will enter managed funds and management fees will soar. Challenger (ASX: CGF) has a rapidly growing funds management division and is the financial company which is best positioned to tap into the booming number of Australian’s entering retirement between now and 2030.

IT services company Oakton (ASX: OKN) has struggled in 2013, largely thanks to poor amounts of technology spending by big companies and government departments – possibly due to a change in government. However, Oakton is well placed for a pick-up in IT spending come mid-2014 and pays a great dividend.

In the resources sector, Senex Energy (ASX: SXY) looks set for a strong year. It’s currently undertaking a number of drills and has an exceptional success rate. Morningstar’s analyst consensus is expecting earnings per share to grow from a current 5.5 cents to 9.6 cents in 2015.

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Motley Fool Contributor Owen Raszkiewicz owns shares in Cash Converters and Myer.