Investing for the long-term may require a lot of good decision making and foresight, but it definitely doesn't demand a lot of trading in and out of stocks to meet your goals. High returns of 20% – 30% are great if you can get them, but not even great investors like Warren Buffett could expect to get that year in and year out. Over several decades, steady, consistent gains of even 15% can return a great amount of money and outperform the market.
Buffett once described investing and market timing this way-
Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.
If you are looking to make a killing every year, you will be tempted to chase stocks and trade more. That opens you to more volatility, less than optimal stock choices and potentially mediocre returns.
We can only be patient with our investment choices if we first select the high quality stocks that can deliver steady gains and dividends over many years. Following this, I have three high yield stocks that have good track records for growth.
— IOOF Holdings Ltd (ASX: IFL)
The financial services company provides superannuation, annuities and financial planning, which are very popular now amongst people getting ready for retirement. It offers a fully franked 5.3% dividend yield. Earnings and dividends are forecast by some analysts to rise an average 10% annually over the next two years.
—Telstra Corporation Ltd (ASX: TLS)
The telco giant is well known for its rock-solid dividend and the stock is yielding 5.4% fully franked. The rate of dividend growth may not be high right now, but this market leader has the money and wherewithal to grow as a business for decades to come. It could be a part of a firm income foundation in your portfolio.
— Suncorp Group Ltd (ASX: SUN)
The insurer and banking service provider offers a 5.0% yield fully franked. Some analysts forecast dividends to grow an average 6% annually for the next two years. In addition, the company has stated that there could be a capital return of surplus funds in excess of its conservative target levels. A possible special dividend would boost income returns.
