Preparing for your retirement makes you consider what you want in the future. Will you be happy with a standard house and simple lifestyle, or are your financial dreams much bigger?
Either way, you need strong stocks that can deliver growth and earnings for a decade or more. I have three stocks here that can stand the test of time. Also, because of their market-leading positions they could even become the blue-chip stocks of the future. Getting them cheap now and building up a position over the next decade can help you retire richer.
First, there is Super Retail Group Ltd (ASX: SUL), the specialty retailer that operates such store brands as Supacheap Auto, Rebel Sport, BCF and Amart Sports. Retail has been a tough sector for over a year and this company has gone from about $14 a share to $8.32. The general economy hasn't completely recovered, but I think the worst is behind us. Super Retail Group may be at or near a bottom, so with its big 4.8% fully franked yield, it may be time to pick up the company's shares to be ready for a rebound in retail.
Next, Navitas Limited (ASX: NVT) should also start heading back up. The education services provider took a big tumble in early July, falling from about $7 to $4.50 when it announced that one of its key clients, Macquarie University, will start its own education pathways program in 2016. Until then, its current program with Navitas will continue as it is. Navitas has time to establish educational pathways programs at other universities. This short-term setback is advantageous for long-term investors. The stock is about $5 now and yields 4.7% fully franked.
A strong investment management company would be good for bringing in solid growth and dividend income, so I'd choose Perpetual Limited (ASX: PPT). With $29.8 billion under its management and more super and SMSF customers preparing for retirement, the company can continue to make bigger profits from investment returns. Its service fees on such a big sum also will bring in extra revenue. The stock is yielding 5.6% fully franked. Earnings are expected to grow an average 13% annually over the next two years, so now could be a good chance to pick this stock up cheaply.
Lastly, to round out the group, having a smaller stock with excellent growth potential could give you attractive share price gains. The Motley Fool's top analyst, Scott Phillips, recently discovered a cheap but growing ASX stock with a 6.2% grossed-up dividend yield that could be a buying opportunity now.
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