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.
This pizza group will deliver
Domino's Pizza (LSE: DOM)
A jewel of the UK market
Experian (LSE: EXPN)
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)