2 stocks I'd buy now for growth and income

ResMed Inc (CHESS) (ASX:RMD) and IOOF Holdings Limited (ASX:IFL) can help you hit your targets for steady growth and income.

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Why do you invest? What do you want to achieve?

A lot of successful investing comes down to having clear goals of what you want to accomplish… and then sticking to those goals.

Warren Buffett, the billionaire investor, said in a recent interview,

"If you own your stocks as an investment—just like you'd own an apartment, house or a farm—look at them as a business. If you're going to try to buy and sell them based on news or something your neighbour tells you, you're not going to do well. Find a good bunch of businesses and hold them."

Unless you're flipping properties in a hot real estate market, your investment won't do well.

Same goes for many stocks as well. If you want to get in and out of stocks for a quick buck, that's fine. Some people make money that way, however most don't.

Investing is for the long-term.

With that in mind, here are two companies that are built for the long-term and could help you hit your targets for wealth creation.

— ResMed Inc (CHESS) (ASX: RMD) produces breathing aids and respiratory devices used by individuals at home and by hospitals and healthcare providers. Many people suffer from breathing disorders and lung related problems and ResMed is a leading company in the US and Australia.

Its specialised and popular products command a premium price, so the net profit margin and earnings growth for the company are in the high double digits. That shows it's a great business.

— For long-term dividend income, IOOF Holdings Limited (ASX: IFL) is promising. The financial services provider handles superannuation, annuities and investment trusts. Saving and investing for retirement is a top priority for many Australians, so the company can manage its customers' investments and savings for decades.

Consensus forecasts are for earnings to increase around 12% annually for the next two years, but equally as good is the average 10% annual dividend growth that's forecast. Offering a 5.5% fully franked yield currently, imagine what the dividend payments may be 10 years from now. You can start building wealth steadily with this stock.

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

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