High-quality stocks set for high returns

Hugo Ure of the Troy Income & Growth Trust picks three stocks that should provide shareholders with an attractive yield and the prospect of both income and capital growth.

A professional investor tells us where he'd put his money. This week: Hugo Ure of the Troy Income & Growth Trust highlights three favourites.

The Troy Income & Growth Trust aims to provide shareholders with an attractive yield and the prospect of both income and capital growth. Historically, the key to market-beating returns with lower-than- average volatility has been investing in high-quality equities. We interpret quality as a preference for capital-light companies that can sustainably generate high returns on capital. As part of our endeavour to shield investors from excessive equity-market volatility, we employ a hard discount control policy, ensuring that not only do the trust's shares continually trade within a few percentage points of the underlying net asset value, but also that investors can enjoy significantly improved liquidity when buying and selling the trust's shares.

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This pizza group will deliver

Domino's Pizza (LSE: DOM)

A jewel of the UK market

Experian (LSE: EXPN)

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Experian enables banks, utilities and telcos to automate credit, compliance, and anti-fraud processes and now sits at the cutting edge of the big-data trend. With a sustainable growth profile and returns on equity above 30%, we are happy to forgo a more generous dividend to hold such a financially productive jewel of the UK stockmarket.

Profits in plastic

Victrex (LSE: VCT)

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