With interest rates at record lows, it can be really easy for investors to overlook growth shares in favour of high-yielding dividend shares.
Don't get me wrong – I love my dividends as much as the next person, but I still think it is important to have a selection of high-growth shares in every portfolio. These are the types of shares that can deliver above average returns and give your portfolio a real chance of outperforming the market.
With that in mind, here are 10 high-growth shares that investors might want to consider in 2017 (figures sourced from CommSec):
| Company | Market Cap | P/E ratio | PEG Ratio | Dividend Yield | 3 Year average Total Return |
| Corporate Travel Management Ltd (ASX: CTD) | $1.8 billion | 33.8 | 0.92 | 1.6% | 52.3% |
|
Nanosonics Ltd. (ASX: NAN)
|
$884 million | 97.5 | – | – | 50.0% |
|
Webjet Limited (ASX: WEB)
|
$1.0 billion | 30.8 | 0.89 | 1.7% | 61.7% |
|
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
|
$4.8 billion | 30.6 | 1.33 | 2.1% | 34.2% |
|
RCG Corporation Ltd (ASX: RCG)
|
$793 million | 19.2 | 0.66 | 4.2% | 29.5% |
|
Cochlear Limited (ASX: COH)
|
$7.3 billion | 34.8 | 1.99 | 2.0% | 34.0% |
|
BWX Ltd (ASX: BWX)
|
$390 million | 25.6 | 0.74 | 1.5% | – |
|
WiseTech Global Ltd (ASX: WTC)
|
$1.7 billion | 72.6 | 1.11 | – | – |
|
Altium Limited (ASX: ALU)
|
$1.0 billion | 28.2 | 1.08 | 3.8% | 51.9% |
|
Treasury Wine Estates Ltd (ASX: TWE)
|
$7.8 billion | 30.1 | 1.30 | 1.9% | 47.3% |
One obvious point that investors will notice about the shares above is that they all trade on relatively high earnings multiples and very low dividend yields. This means the company has to deliver on market expectations or you can expect to see the shares get wiped out.
Personally, I think each of the 10 shares above has the potential to beat market expectations over the next few years as they all either enjoy the benefits of a fast-growing industry or are the leaders in their particular markets.
While I would love to buy each share at a slightly lower valuation, if I had to choose three shares to buy right now, it would have to be Webjet, RCG Corporation and BWX. Each share trades on a price-to-earnings growth (PEG) ratio of less than 1 and offers the prospect of fast-growing dividends.
