The sharemarket is a 'busy' place which many people use to constantly trade in-and-out of positions on the back of the latest data point or news headline. All this trading creates an aura of hard work and cleverness. However, as many of the most successful investors in the world have shown – including billionaire Warren Buffett – constant buying and selling is not necessary to achieve exceptional returns and in fact constantly re-adjusting your portfolio may harm your overall results.
For investors creating a portfolio with the aim of setting themselves up to enjoy a comfortable retirement, not only is a 'trading' mentality undesirable from a relaxed retirement point-of-view, but it is also likely unhelpful to ultimate wealth creation.
Here are three stocks which all have appealing long-term growth profiles, they also all pay dividends and are arguably the types of companies that investors with a long-term investment horizon might consider adding to their portfolios.
ResMed Inc. (CHESS) (ASX: RMD) is a business in a sweetspot. Not only does it have a market-leading product but it also sits in a fast growing market where the understanding of sleep apnea and the need for treatment is becoming increasingly well understood. The outlook for both earnings growth and dividend growth is strong.
CSL Limited (ASX: CSL) manufactures and develops a wide range of protein-based therapies. The firm's large research and development program creates significant scope for new product development to further drive growth, as does rising global per capita income.
Sonic Healthcare Limited (ASX: SHL) has grown into a $7 billion company with diagnostic and pathology services spanning countries including Australia, the UK, Germany and the USA. Despite its size, Sonic still has plenty of scope to undertake further acquisitions and leverage its fixed-cost base across a wider patient population.
