Another Australia Day has come and gone. Getting together with family and friends for a barbie or other outing gives everyone a good reason to enjoy and be thankful for what we have.
One thing I'm thankful for is the right as a Foolish investor to turn off the market noise of falling oil, iron ore and other commodity prices to focus on what can possibly make you a good return.
As we know, commodity-like products are nearing cyclical lows and could stay down for some time. Sticking with companies that provide a specialised service that's in demand is a much better recipe for good gains.
Financial services outside of regular banking may be the solution. Below I have two of the best financial stocks that you can come across on the ASX. They have long histories of business performance and could give solid returns over the next decade.
Investment portfolio administration and financial planning provider IOOF Holdings Limited (ASX: IFL) has been helping Australians build wealth for over 150 years and currently manages and administers about $143 billion of client funds. Like its long experience as a company, IOOF Holdings keeps focused on the long-term gains of investing.
It has good, steady profit margins and offers shareholders a very hefty 5.4% yield fully franked. Dividends have grown in the double-digits on average annually for the past five years. That kind of solid performance can give confidence to investors.
Macquarie Group Ltd (ASX: MQG) is Australia's premier investment bank. It is involved in services for corporate activities, but it is also well known for large-scale asset management and equities investment.
Macquarie grew earnings strongly over the past two years, partly due to the rising overseas financial markets, making savvy investments with client funds. The market expects continued growth in the US where Macquarie generates about 30% of its revenue. It should even get a boost to earnings thanks to the falling Aussie dollar. The stock pays a solid 4.6% yield, which is probably more than the rate the investment bank's own term deposits pay, so shareholders are already ahead in that respect.
