With over 2,100 listed companies spread across the ASX, the grouping of stocks by industry sector makes life a little easier for investors. One reason sector groupings are useful is it allows investors to analyse how diversified their portfolios are.
It's important that investors don't 'put all their eggs in one basket' and while there are a number of ways to gain diversification, one way is to buy a selection of stocks across different industry sectors.
One of the major industry groups is Consumer Services. While simply a starting point, here are a few stocks that could be of interest to investors looking to add Consumer Service stocks to their portfolio.
Growth
Ainsworth Game Technology Limited (ASX: AGI) develops, manufactures and sells gaming machines – otherwise known as poker machines. The company distributes globally which provides significant opportunities for growth. Morningstar's data suggests earnings will grow 32.7% this financial year.
High Yield
Tatts Group Limited (ASX: TTS) provides services including wagering and lotteries. The firm is forecast to pay fully franked dividends totalling 15 cents per share in financial year 2014 which implies a yield of 4.9%.
Quality
Flight Centre Travel Group Ltd (ASX: FLT) has an enviable track record of expanding its travel business into new markets. Its track record of profit growth has been reflected in its significant share price appreciation. While some investors remain concerned about the threat of the internet on Flight Centre's business model, the company continues to prove the naysayers wrong.
Defensive
InvoCare Limited (ASX: IVC) is an owner and operator of funeral homes, cemeteries and crematoria with operations in Australia, New Zealand and Singapore. Its revenues and earnings have grown steadily for the past decade which highlights the defensive nature of InvoCare's business.
Foolish takeaway
One way to diversify and build a rock solid portfolio is to pick great stocks from a selection of industry sectors. Not paying more than a fair price for quality stocks is the other important practice to never forget.
