To be successful in the stockmarket we must buy low and sell high. Sure, dividends are a great bonus of investing in strong companies but they shouldn't be the focal point of your strategy.
However by buying and holding quality growth stocks, savvy investors can take advantage of both increasing earnings and dividends per share. Here are five companies you could consider adding to your portfolio today.
1. Shine Corporate Ltd (ASX: SHJ)
Shine is a small-cap law firm which recently listed on the ASX. From humble beginnings in Queensland, Shine has expanded its footprint throughout much of the country with a total of 39 offices. Following in the footsteps of its larger counterpart Slater & Gordon Limited (ASX: SGH), it has a long growth runway ahead.
2. Thorn Group Ltd (ASX: TGA)
Thorn Group is a leading provider of rental products and equipment finance for both business and private customers. It is the owner of brands such as Radio Rentals and Rentlo. Trading on a P/E ratio of just 11 it pays a 4.9% dividend.
3. Cash Converters International Ltd (ASX: CCV)
In addition to being a well-recognised pawn shop operator, Cashies' payday loans and cash advances are a big driver of revenues and earnings. Its shift to online loans is shaping up to have real growth potential, despite changes to lending laws in Australia. In addition its Carboodle business is growing rapidly. Trading on a P/E of 13, Cashies is a great buy at current prices.
4. Senex Energy Ltd (ASX: SXY)
Oil and gas producer Senex Energy is one of Australia's best resources stocks. With growing production, increasing reserves, excellent balance sheets and exploration blocks in some highly prospective areas, I believe it represents a great long-term buy at current prices. It trades on a P/E of 12.
5. RCG Corporation Limited (ASX: RCG)
As the owner of The Athlete's Foot, RCG uses its exclusive rights to distribute top branded footwear and apparel. Popular names include Merrell, Saucony, Cushe, Chaco and CAT. Trading on 15 times earnings it is forecast to pay an impressive 6.3% dividend.
Foolish takeaway
Each of these companies represent great buying opportunities and should make up part of any long-term growth portfolio. I already own four of the six companies mentioned in this article, but am strongly considering adding the other two in the near future.
