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3 steady growth stocks to buy and hold now

Recently, three growth stocks listed below are at or near 52-week highs thanks to strong earnings increases and it seems to me that with their promising growth prospects they can make further gains.

Traders might think they’ve run their course, but for long-term Foolish investors they could be good portfolio additions and all pay decent dividend yields.

—  Sonic Healthcare Limited (ASX: SHL) is a pathology and medical imaging diagnostic service provider with an extensive network of practices in Australia, as well as in the US, the UK and Europe. Its price-earnings ratio is 18.5 and it offers a 3.8% dividend yield partially franked. It just announced a 14.9% gain in full year net profit. Analysts’ forecasts suggest stable earnings growth over the next two years. The company has recently opened and is developing new advanced pathology labs in Australia and Europe, which should drive future profits and dividend growth.

—  iiNet Limited (ASX: IIN) This $1.29 billion ISP company has exceeded $1 billion in revenue for the first time. It holds over 20% of the NBN market with 40,000 iiNet customers using NBN. Its broadband customers have hit a new high of 950,000 on strong organic growth. Full year underlying net profit grew 19% and its total dividend was raised to 22 cents per share. Its PE is 19.4 and its yield is 2.7% fully franked. iiNet can continue to grow as the NBN network is rolled out across Australia. It plans to extend its reach further on the east coast.

—  DuluxGroup Limited (ASX: DLX), the maker of paint, coatings, home improvement and garden care products reported an excellent first-half result in May with a 33.6% gain in underlying net profit. Its stock has a 19.8 PE and offers a 3.4% yield. The growing housing market increases demand for its products. Housing construction companies like Stockland Corporation Ltd (ASX: SGP) have reported higher building order volumes and an undersupply in housing is forecast for another few years. Private homeowners can also drive DuluxGroup’s sales as well with more DIY repair and maintenance, which usually increases in a rising property market.

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These three stocks can offer good growth, with DuluxGroup my preferred company of the group over the short term. However our top analyst recently identified one CHEAP growth stock which has a 6.8% grossed-up dividend yield that is flying under the radar. You can get the name of his 'ultra-promising story stock' FREE in our new research report. Simply, click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

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

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