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3 hot growth stocks to help fire up returns

The Australian economy seems to have some good things going for it as a rise in gross domestic product in the March quarter pushed up the annualised growth to 3.5%. With consumer sentiment weak and the shadow of a cost cutting Federal budget looming over the scene, the general mood feels out of line with the economic advance.

When it comes down to choosing winning stocks, you have to drill into what individual companies are doing, looking for quality, strength and growth. Here are three stocks that could be a good addition to any portfolio.

Perpetual Limited (ASX: PPT)

The investment management company offers a 3.4% dividend yield. With a rising financial market, its investment returns have created a strong surge in earnings. First-half underlying net profit was up 37% and its interim dividend increased 60% to 80 cents per share.

It also has international investments, so the recovery of the US market and growth in Asia can continue to support investment income.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The takeaway pizza company sells a product that people keep on eating whether the economy is up or down. Its dividend yield is 1.7%, but it makes up for that through share price growth. It is up over 75% in the last twelve months.

It acquired a 75% stake in Domino’s Pizza Japan, which has more than 250 stores. New stores have already been created and the company projects there is potential to grow store numbers to around 600.

Santos Ltd (ASX: STO)

The energy producer expects the higher oil and gas production from the PNG LNG project and GLNG project in QLD (coming online in 2015) will be the start of “transformational growth” for the company. The stock is offering a 2.2% dividend yield, but with a potential step-change increase in earnings forecast, strong dividend payment growth is expected.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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