The Motley Fool

2 growth stocks I’d hold for the next decade

What I like about Victrex (LSE: VCT) is its record of good trading leading to steady earnings and dividend increases. The company is doing well, and today’s full-year results continue the story with constant currency revenue lifting 3% compared to a year ago and earnings per share shooting up 20%.

The directors expressed their confidence in the outlook by pushing up the regular dividend 15% and by paying a special dividend of 68p. Together, these payments put this year’s dividend haul for investors around 160% higher than last year – excellent work!

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Strong pipeline to drive growth

The company provides high performance polymer solutions for the automotive, aerospace, energy, manufacturing, engineering, electronics and medical markets. The year saw core business growth “fully offsetting” what turned out to be asignificant reduction” in consumer electronics volumes. But the directors were expecting consumer electronics business to retreat, and the fact that revenue and earnings grew anyway highlights the strength of the firm’s diversified business model, I reckon.

Chief executive Jakob Sigurdsson tells us that a strong pipeline of new products will drive the firm’s ambition to generate 10% to 20% of additional sales over the medium term. He reckons that the directors’ strategy regarding polymer and parts “is already differentiating Victrex in a competitive market,” and that the firm is also “closing in” on a major OEM agreement in its dental division.

There’s a lot happening to keep growth on the agenda. The year saw one bolt-on acquisition, the establishment of a joint venture to develop differentiated aerospace products, and the opening of £10m polymer innovation centre to support prototyping and new polymer grades. The company plans to continue to focus on partnerships, alliances and acquisition opportunities, Mr Sigurdsson says, “to help accelerate our growth programmes.”

An appealing sector

Meanwhile, Consort Medical (LSE: CSRT) delivered its interim results today showing another steady performance. Constant currency revenue came in 4.2% higher than a year ago and adjusted basic earnings per share pushed up 2.6%. The directors slapped 5% on the interim dividend.

The firm operates in an appealing sector describing itself as a one-stop developer and manufacturer of drugs and premium drug delivery devices. I don’t think drugs will ever go out of fashion, so constant demand for the service seems assured as long as Consort remains competitive. A “strong” development pipeline looks set to keep the firm moving forward with organic growth, although chief executive Jon Glenn reckons that if an acquisition opportunity looks capable of providing the firm access to new geographic markets and complementary technologies, the directors will consider it.

A good return with more to come

More of the same from this reliable-looking company would be a good thing. Over five years the dividend has increased around 25% and the share price is up around 65%. Investors holding the shares have been rewarded for their patience and I reckon similar patience could pay off going forward too.

Although operating in different sectors, both Consort Medical and Victrex have long records of good trading and earnings growth, which look set to continue. Valuations are full and fair, but playing the long game and holding investments for the next decade in these two could pay off if the world’s economies hold up.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Victrex. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.


Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.