My Top 8 Growth Stocks for the Next Decade

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As you well know, it only takes a handful of stocks to make — or break — your portfolio.

The economic turmoil of the past decade has drained investors’ portfolios, leaving many to stay in the work force well into their “Golden Years,” and has left those already in retirement wondering if there will be enough money at the end of the day.

That’s why I’ve put together this collection of my top eight stocks you should own now and hold for the long term.

Buy now for earnings growth and profits in the year ahead and hang onto them because they represent some of the best long-term stocks in the market today.

Top Growth Stocks: IPG Photonics (IPGP)

Top Growth Stocks: IPG Photonics (IPGP)

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IPG Photonics (NASDAQ:IPGP) is the world’s leading provider of high-power fiber lasers. These lasers are used in a variety of different devices and applications, ranging from materials processing to broadband internet to medical pumps.

The bottom line is, the demand for fiber optic laser technology is a growth industry for a very long time, and IPGP is one of the major players.

Fiber lasers are the next generation of laser technology and offer many advantages over traditional lasers. They’re more energy efficient, they’re easier to maintain and they last longer.

As companies upgrade their current technologies with fiber-laser applications, IPG Photonics’ sales and earnings continue to soar.

In March IPGP entered the S&P 500, which is a big deal because every index fund linked to S&P 500 performance now needs to own the stock.

But IPGP stock has been up and down on tariff talk, so it’s a great time to get in.

Top Growth Stocks: Ferrari (RACE)

Top Growth Stocks: Ferrari (RACE)

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Ferrari NV (NASDAQ:RACE) is the world-renowned Italian sports car maker. Founded by Enzo Ferrari, the company developed and built its first sports car back in the late 1940s.

Today, Ferrari offers seven vehicle models, including four sports cars (488 GTB, 488 Spider, F12 Berlinetta and special series F12 Tour de France) and three GT cars (California T, FF and GTC4Lusso). The company also plans to replace the F12 Berlinetta with the 812 Superfast coupe.

Demand for its cars continues to rise and its line of clothing and accessories is also growing at a brisk pack.

Ferrari expects to ship more than 9,000 vehicles in 2018 and is looking for revenues of 3.4 billion euros. Company management also noted that it expects to double core earnings to 2 billion euros ($2.5 billion) by 2022.

RACE stock is up nearly 30% year to date, so none of this trade war talk or political turmoil in Italian politics is slowing its performance.

Top Growth Stocks: Weibo (WB)

Top Growth Stocks: Weibo (WB)

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Known as “China’s answer to Twitter,” Weibo (NASDAQ:WB) is a social media company that allows Chinese users to express themselves, connect with others, discover Chinese-language content and use push notifications on their mobile devices.

While its Twitter of China description was pretty accurate in its early days, now it’s much more diversified — it’s more like the Facebook of China at this point.

Weibo now offers online games and mobile apps that have created a very complete social media experience in a young, enthusiastic consumer demographic.

It’s no surprise then that WB has experienced tremendous growth since its launch in 2010, and it shows no signs of slowing down.

Trade war talk has soured the market on WB, but that’s to our advantage. WB has enormous potential growth in China and Asia, without any need to look to the U.S.

Top Growth Stocks: Arista Networks (ANET)

Top Growth Stocks: Arista Networks (ANET)

Based in San Jose, California, Arista Networks (NYSE:ANET) provides cloud networking solutions to 4,000 customers across five continents.

Arista specializes in high-speed network switches that enable cloud service providers, internet companies and data centers to run faster networks. Arista also provides technical support, hardware repair and parts replacement.

When it comes to the lucrative high-speed network switches market, Arista Networks goes toe-to-toe with Cisco Systems (NASDAQ:CSCO). But while its larger competitor is struggling to grow sales and earnings, Arista Networks is growing by leaps and bounds.

Part of ANET’s competitive advantage is that it isn’t tied down to legacy systems like CSCO is. Its equipment is next generation, built for the next iteration in networking and cloud services.

It has had a bumpy ride in 2018, but this is a long-term player with huge potential. It is a force in crucial megatrend sectors that will grow regardless of economic ups and downs.

Top Growth Stocks: Nvidia (NVDA)

Top Growth Stocks: Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) is a leading computer graphics company, making graphic processing units (GPUs) for consumers and businesses.

These GPUs enhance the processing capability of its users’ computers.

The company has been in the computer graphics business for more than two decades — it invented the GPU in 1999 — so it is a well-established player.

In a recent earnings report, company management noted that NVDA “achieved another record quarter, capping an excellent year.” The fact is, this could be almost any quarter since 2016.

If you look at NVDA’s historic price chart, you can see that the stock goes parabolic in 2016. That’s when the mobility trend took off and enabled all the sectors that NVDA has come to dominate: cloud, augmented reality, virtual reality, Internet of Things, Big Data, smart devices, etc.

NVDA is to the future of computing what Amazon (NASDAQ:AMZN)has become to ecommerce.

Top Growth Stocks: Sociedad Quimica Y Minera de Chile (SQM)

Sociedad Quimica Y Minera de Chile (NYSE: SQM), or the Chemical & Mining Co. of Chile, is the largest producer of specialty plant nutrients, lithium and derivatives, iodine and derivatives, industrial chemicals and potassium in the world.

Not surprisingly, given that list of materials, its products have a range of uses.

Its Specialty Plant Nutrition division provides nutrients and fertilizers to boost crop output. Increasing productivity is crucial to farmers, especially when prices (and margins) are low.

Its Iodine division offers derivatives that are used in medical and industrial applications, as well as in antiseptics, disinfectants and polarizing films for LCDs.

Its Lithium division provides lithium carbonates for batteries, heat-resistant glass, air conditioning chemicals and more. With electric and hybrid vehicle demand growing, consistent lithium supplies are crucial.

Its Industrials Chemicals division produces industrial nitrates that are used to manufacture glass and explosives.

Its Potassium division focuses on the sales of two potassium fertilizers. Trade issues have discounted the stock and make it a bargain long-term investment now.

Top Growth Stocks: UnitedHealth Group (UNH)

Top Growth Stocks: UnitedHealth Group (UNH)

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UnitedHealth Group (NYSE:UNH) is the largest single health carrier in the United States. It serves more than 85 million people worldwide and is a parent company to six businesses, including UnitedHealthcare — health insurance that offers policies to businesses and individuals, including Medicare and Medicaid policies.

Its other main branch, Optum, administers everything from mental health and substance-abuse programs to mail-order pharmaceuticals.

While many drug store stocks were rocked by the news that Amazon has now entered the pharmacy business, UNH has been relatively undisturbed because of its integrated strategy.

Looking ahead to full-year 2018, the healthcare giant is targeting adjusted earnings between $12.30 and $12.60 per share, which is a 22% to 25% year-over-year increase and up from its previous guidance of $10.55 to $10.85 per share.

Additionally, cash flows from operations are expected to be in a range between $15 billion and $15.5 billion, and UnitedHealth Group is calling for total revenues between $223 billion and $225 billion.

Top Growth Stocks: Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) is in a business that sounds like it comes straight from a science-fiction novel: Surgical robotics.

However, luckily for patients around the world, this revolutionary technology is not only possible, it is becoming more and more integrated into everyday hospital use.

Intuitive Surgical got its big break in 1999 when it introduced the da Vinci surgical system. Complete with a surgeon’s console, a patient-side cart, a 3-D vision system and wrist instruments, this system allows doctors to perform minimally invasive surgery with enhanced dexterity, precision and control.

In the end, this technology benefits the patients, who usually experience less pain, a shortened hospital stay, fewer infections and less scarring.

Nearly 20 years later, the company has developed several models of this surgical system and even offers a training program that brings surgeons up to speed on this technology.

This system has steadily caught on in the healthcare industry; last year alone, the company’s systems were used in 650,000 procedures around the world.

ISRG stock is up more than 30% so far this year, but that is still just the beginning for this next generation healthcare company.

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Source: Investor Place 

Five 5% Payers That’ll Fund a “Dividends-Only” Retirement

Do you have a reliable way to generate monthly cash flow from the dividend stocks you own today? If not, why not?

Many “first-level” investors hope that their stocks will go higher so that they can sell them for cash flow. But, if you follow rich people, you’ll notice that they never actually sell any assets – they instead use them to generate more and more cash flow.

We can – and should – do the same. We can “tap” dividend stocks for regular cash flow. We can even turn the shares we own today into monthly dividend payments that provide us all the income we ever need for the rest of our lives (and we can hang onto the shares and enjoy price upside, too!)

Some financial advisers (many of whom haven’t even retired successfully themselves!) pitch a “4% withdrawal rate” where you “safely” withdraw roughly 4% each year that you use as spending money. Sometimes they’re right … but when they’re wrong, they risk your entire retirement with “reverse” dollar-cost averaging:

This Is What Reverse Dollar-Cost Averaging Looks Like

If you’re following the 4% withdrawal strategy, you usually take money out at precisely the wrong time. You sell more when shares are low – precisely the opposite of the behavior you used to build your nest egg in the first place when you bought low and sold high!

This is reverse dollar-cost averaging – selling more when prices are low and less when prices are high.

The solution? Never have to sell a share by requiring meaningful dividends of 6%, 7% or 8%. This way, you can collect cash from your portfolio quarterly (or sometimes even monthly!) without selling low – or ever!

I also suggest you take one extra step: That’s buying when prices are low and yields are high.

The stock market offers far more upside than bonds, so going too lean on stocks opens you up to a pair of risks:

1.) Outliving your savings, and

2.) Missing out on the gains only the stock market can offer.

One way to do that? Target what I call “Dividend Stocks with Double-Digit Upside” potential.

These shares yield more than 5% each today. Plus these firms have been raising their dividends every year, which means your “yield on cost” will soon grow to 6%, 7% or even 8% or more.

BUT – investors who buy these shares next year likely won’t see a 6% to 8% yield. They’ll probably see the same 5%, give or take – which means your shares will have increased in value. (Investors pay more for a stock price over time as its underlying dividend increases.)

Looking for meaningful yield today with better payouts and price upside tomorrow? Here are five 5%+ payers with 25%+ upside each – thanks to future dividend hikes and the fact that these shares are cheap with respect to cash flow (as indicated by FFO, or their funds from operations).

National Health Investors (NHI)
Dividend Yield: 5.2%
Dividend Hike Streak: 8 years
P/FFO (Price to Funds From Operations): 13.7

Baby Boomers have been an unquestionable economic force their whole lives – and now they’re impacting new industries as they hit retirement age. Roughly 10,000 Boomers are hitting retirement age every day, which is expected to double Medicare spending between 2017 and 2020. Not to mention, an average couple is expected to shell out some $275,000 in out-of-pocket healthcare costs during retirement.

This is a trend that will play out for more than a decade – a dream for buy-and-holders looking for growth and dividends in the healthcare space.

It’s also a trend that has been lifting the fortunes of National Health Investors (NHI) for a roughly a decade already.

National Health Investors owns and provides financing for senior housing and other medical real estate, via a number of methods, including joint-venture, sale-leaseback, mortgage and mezzanine. The company has 225 portfolio companies across 33 states, including 147 senior housing facilities, 73 skilled nursing facilities, three hospitals and two medical offices. Its leases are long-term in nature – none of its current leases expire until 2026! – and they include annual escalators, which helps smooth out expectations for profits.

NHI has been a growth machine for years; the chart below tells the tale:

National Health Investors (NHI) Is Ticking Like a Champ

The good times kept rolling in National Health Investors’ first quarter, including a roughly 10% jump in revenues that filtered down to an 8% improvement in adjusted funds from operations (AFFO). The company also continued growing by devouring, announcing or completing nearly $100 million in real estate acquisitions and loans for the quarter.

Better still, the REIT (real estate investment trust) just boosted its dividend by 5% to $1 per share, and it’s still well-covered at a healthy 83% of AFFO.

LTC Properties (LTC)
Dividend Yield: 5.4%
Dividend Growth Streak: 8 years
P/FFO: 13.8

Let’s stay on the seniors/health care theme by exploring one of my favorite monthly dividend stocksLTC Properties (LTC). It’s very similar to NHI in several ways.

For one, the company invests and finances senior-living and health care properties, with similar breadth – more than 200 properties across 29 states. NHI’s split is 99 assisted-living facilities, 97 skilled-nursing facilities and seven that fall under the “other” basket.

The company also has a similar yield, similar valuation and the same eight-year dividend-growth streak as National Health Investors. Leases are long-term, with none expiring until after 2024, so cash flow looks safe. FFO payout ratio sits just a hair above 76%, so that looks good, too.

Top- and bottom-line growth? LTC looks good, just like NHI.

LTC Properties (LTC) Is as Healthy as a Horse

If you’re worried about the 4% year-over-year dip in FFO last quarter, don’t sweat it too much. That was heavily impacted by property sales in 2017, plus a defaulted lease that investors seemingly already baked in.

Tanger Factory Outlet Centers (SKT)
Dividend Yield: 6.1%
Dividend Growth Streak: 25 years
P/FFO: 9.0

The majority of retail plays on the market stink from a long-term perspective. Whether you’re talking about the brick-and-mortar operators themselves, a la Macy’s (M) and Sears (SHLD), or the real estate investment trusts (REITs) that lease to them, there’s very little upside in a space that’s not just getting upended by the likes of (AMZN), but also by more agile operators such as Williams-Sonoma (WSM) that have “figured out” the internet.

In fact, only a few retail REITs are worthy of consideration, and Tanger Factory Outlet Centers (SKT) is one of them.

Tanger Factory Outlet Centers is a bit different from most retail operators, but that difference counts. Rather than operating traditional retail space such as malls or single-tenant buildings, Tanger operates 44 large outlet malls across 22 states, where brands such as Coach (COH)Michael Kors (KORS), Ecco and Tumi for outrageous discounts, attracting its own type of bargain-hunting crowd.

Meanwhile, investment bargain hunters are sure to like the single-digit P/FFO.

It’s hardly immune from the factors weighing on the retail space – the company actually adjusted its occupancy forecasts lower in May, during its Q1 earnings report, as a result of store closings and bankruptcies. But SKT provided reason for optimism, too, in the form of several operational improvements. FFO improved by 3% year-over-year to 60 cents per share, same-center tenant sales performance improved 1.7% year-over-year for the 12-month period ended March 31, and average tenant sales productivity improved during the same period.

One last feather in the cap: Tanger increased its dividend for the 25th straight year, making it eligible to become a Dividend Aristocrat – making it a rarity among REITs.

Enterprise Products Partners L.P. (EPD)
Dividend Yield: 6.1%
Dividend Growth Streak: 19 years
P/DCF: 11.8

Enterprise Products Partners, L.P. (EPD) is one of the largest master limited partnerships (MLPs) on the market, boasting roughly 50,000 miles of pipelines dedicated to moving natural gas, nat-gas liquids (NGLs), crude oil, refined products and petrochemicals – NGLs are king, though, at 57% of revenues. EPD also features storage, fractionation, natural gas processing and import/export terminaling operations.

Pipeline contracts mostly range between 15 to 20 years, helping to ensure stable cash flows. That in turn has allowed EPD to be one of the most prolific income growers of the past decade-plus, with Enterprise Products Partners boasting 55 consecutive quarters of distribution hikes.

Enterprise Products Partners, L.P. (EPD): Distribution Growth That’s Smoother Than a Baby’s Bottom

EPD’s most recent quarter was a blowout affair. Earnings per share grew 11% to 41 cents per share to easily best estimates, and distributable cash flow jumped 23% year-over-year.

Continued dividend growth seems likely, too. At 63.8 cents in the first quarter, EPD sports a coverage ratio of 150%. So despite its frequent payout growth, there’s still plenty of room in the trunk.

W.P. Carey (WPC)
Dividend Yield: 6.1%
Dividend Growth Streak: 20 years
P/FFO: 12.3

W.P. Carey (WPC) is a single-tenant net-lease REIT, which means that the obligation of real estate taxes, maintenance and building insurance all fall to the tenants. The company operates in both North America and Europe, and its properties span industrial, retail, self-storage, hotels and other categories. That kind of diversification helps insulate WPC from violent fits in any one area.

Like the previous picks, W.P. Carey has a fairly dependable cash stream in that the vast majority of its leases include rent increases.

Unlike the previous picks, W.P. Carey is entering a brand new chapter of existence, announcing in mid-June that it was going to merge with CPA:17 – a non-traded REIT that W.P. Carey’s management team helped advise. The deal gives WPC a hefty dose of exposure to warehouse space, office space and retail; the new assets are geographically diverse, too, with 44% of CPA:17’s net leases coming from international clients.

This merger should only improve WPC’s cash-flow situation, which in turn should fuel continued growth in the dividend. W.P. Carey already is no slouch on that front, having expanded its payout every year since hitting public markets in 1998.

W.P. Carey: Robust Dividend Growth (And The Occasional Special Payout)

How to Retire on 8% Dividends Paid EVERY MONTH

The 5% to 6% yields on this five-pack are nice, but 8% current dividends are of course even better. And how about a monthly payout instead of a quarterly one?

I have a handpicked portfolio of 8%+ monthly payers that not only will pay you four times more than the market average … but will pay you three times more often!

In retirement, it’s important to line up your dividend income with your regular expenses (which are billed monthly). But most publicly traded companies pay dividends quarterly, leaving us high and dry for an extra 60 days in between payments.

Possible to align quarterly dividend payments to show up roughly in equal amounts every 30 days? Sure – but the effort isn’t necessary.

There are cheap monthly dividend stocks (and funds) available today that pay 8%+ per year and pay the same reliable distribution every 30 days, like clockwork. My readers regularly collect $3,000-plus in dividends every single month – and do it with a nest egg as modest as $500,000. (And less money is fine, too – a $250,000 portfolio would yield $1,500+ in monthly income. With price upside to boot.)

My “8% Monthly Payer Portfolio” checks off every box that investors need from retirement:

[X] Monthly dividend income to pay your monthly bills.

[X] Dividends checks large enough to allow you to live off investment income entirely. That means no selling your stocks and shrinking your nest egg, which ultimately shrinks your regular dividend paycheck.

[X] Better returns on any dividends you choose to reinvest. If you don’t need the income from your portfolio right away, you don’t have to wait every three months to put dividends to work – you can sink them back into new investments just about every 30 days!

These monthly dividend payers include a few picks that have remained mostly under the radar despite their high payouts and general quality. For instance, this portfolio includes an 8.7% payer trading at a bizarre 5.3% discount to NAV, and an 8.5% payer that not 1 in 1,000 people even know about.

Editor's Note: The stock market is way up – and that’s terrible news for us dividend investors. Yields haven’t been this low in decades! But there are still plenty of great opportunities to secure meaningful income if you know where to look. Brett Owens' latest report reveals how you can easily (and safely) rake in 8%+ dividends and never worry about drawing down your capital again. Click here for full details!

Source: Contrarian Outlook