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3 growth stocks I’d wager $10,000 on

The long-term buy and hold strategy of investing has proven to have been one of the greatest ways investors can grow their wealth exponentially. That is perhaps in particular the case with quality growth stocks, whereby the investor can take full advantage of the capital gains and dividends distributed over the expansion years.

If I had just $10,000 to invest today, here are the three companies I’d likely be targeting…

1)  M2 Group Ltd (ASX: MTU) is a solid bet for investors wanting exposure to Australia’s booming telecommunications industry. While it has spent its last few years focused on growing acquisitively, it will now turn its attention towards expanding organically and paying down its debt. While there is still plenty of room to grow in the coming years, shareholders also get to enjoy its 4% fully franked dividend yield.

2)  Greencross Limited (ASX: GXL) is one of the growth stocks I am most bullish on right now. Although its shares are by no means trading in “Bargain” territory (its projected P/E ratio is 41), a number of recent acquisitions should help boost the company’s earnings significantly in the coming years. Greencross is a provider of veterinary services which also has a strong presence in the pet retail sector.

3)  While I already own shares in Veda Group Ltd (ASX: VED), I’d definitely like to increase my current stake. Veda is a data analytics group set to benefit from stricter credit reporting standards while growth could also come from targeted acquisitions in the coming years. The company also boasts defensive attributes which have been highlighted by its ability to grow revenues even through the toughest economic conditions. With shares having dropped 20% since March, now could be a great time to buy.

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M2 Group Ltd, Greencross Limited and Veda Group Ltd would all make for excellent additions to your portfolio today. While I currently only own shares in Veda, the other two are set firmly on my radar.

However, The Motley Fool's top analysts have recently uncovered another fantastic growth prospect, which also offers a juicy, fully franked dividend yield! They have issued a firm "BUY" rating on this small but ultra promising ASX company... and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Ryan Newman owns shares in Veda Group Ltd.

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