Given the demographics of an ageing population, fast population growth and urbanisation, investors with an eye on the future would be well served to consider some of the best property related stocks on the ASX. Here are three of the best for growth potential and steady income.
Retirement home operator Aveo Group (ASX: AOG) has been one of the ASX’s hottest stocks over the past year up around 38% as investors take a liking to its long-term prospects. Those prospects are fuelled by the demographics of an ageing population set to support demand for places at its retirement villages.
The company’s main growth strategy remains to keep developing new retirement units with a strategy to deliver 200 new units annually by FY 2015 and 500 units annually by FY 2018. Aveo can also grow acquisitively as much of Australia’s retirement hone industry remains fragmented. Fund manager Perpetual Limited (ASX: PPT) is a substantial shareholder in the business.
Selling for $2 it trades on a price-earnings around 21 with a 1.2% dividend yield.
Servcorp Limited (ASX: SRV) rents office space and facilities to companies in 52 cities across 21 countries. With over 20,000 businesses now using its services it has been growing at prodigious rates since being founded by current chief executive Alf Moufarrige. The chief operating officer is Alf Moufarrige’s son, Marcus Moufarrige, which importantly gives management of the business a solid long-term outlook. As with Aveo, Perpetual is a substantial shareholder and Servcorp has seen it shares rise 42% over the last year.
Selling for $4.96 it trades on a price earnings around 23 with a 3% yield.
Mirvac Group (ASX: MGR) is involved in both property investment and construction with an emphasis on the booming Sydney property market and NSW in general. It offers organic growth on the back of defensive revenue streams – just the kind of business for a conservative investor looking to lock in some solid income payments.
Selling for $1.75 it trades on a price earnings of 14.6 with a yield of 5.14% based on a payout of 9 cents per share in FY 2014.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
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*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. You can find him on Twitter @tommyr345
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