The companies in this month's shortlist are sorted and selected based on their growth, both past and estimated future, as well as their current dividend and earnings yields. They all have steady histories over the past decade and I'd go so far as to describe them as good companies at good prices.
Generally I start at the top of this list and if I find something that fits my criteria I'll buy it, assuming I have any cash to deploy. Otherwise it's still worth reviewing a company or two in greater depth just in case some cash magically appears (I wish!), since most of the leg work will have already been done.
| Company | Index | Industry | Rolling PE | Dividend(%) |
| Astrazeneca (LON:AZN) | FTSE100 | PHARMACEUTICALS | 7.2 | 5.4 |
| JD Sports Fashion (LON:JD.) | FTSE250 | APPAREL RETAILERS | 7.7 | 2.7 |
| Chemring (LON:CHG) | FTSE250 | DEFENCE | 11.6 | 2.7 |
| BAE Systems (LON:BA.) | FTSE100 | DEFENCE | 7.6 | 5.8 |
| Clarkson (LON:CKN) | SMALLCAP | TRANSPORTATION SERVICES | 10.2 | 4.0 |
| Reckitt Benckiser (LON:RB.) | FTSE100 | NONDURABLE HOUSEHOLD PRODUCTS | 14.4 | 3.5 |
| Balfour Beatty (LON:BBY) | FTSE250 | HEAVY CONSTRUCTION | 8.5 | 4.4 |
| Interserve (LON:IRV) | SMALLCAP | BUSINESS SUPPORT SERVICES | 7.6 | 6.0 |
| Mitie (LON:MTO) | FTSE250 | BUSINESS SUPPORT SERVICES | 10.9 | 3.8 |
| Carillion (LON:CLLN) | FTSE250 | BUSINESS SUPPORT SERVICES | 9.0 | 4.4 |
I'm pretty sure that out of this list of companies there's something that I'd be happy to put into my pension fund, in fact I already own four of them. I'm looking for something where I'd be happy to go to sleep for five years and trust that the investment has one hell of a good change of returning a fair profit in that time. Or in the words of a rather clever chap,
"Only buy something that you'd be perfectly happy to hold if the market shut down for ten years" – Warren Buffett
That might be a bit of a stretch for most people, but it should get you in the right mindset for picking great companies. Picking great companies is important because by buying any company's shares you are putting your money at risk and just as importantly, you are tying your economic future to their economic future. How you live when you retire is going to be affected in a massive way by the value of your pension fund. Pick the wrong companies and the consequences can be huge. Pick the right companies at the right prices and your retirement might look a whole lot different.
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Disclaimer:
This article is for information and discussion purposes only and nothing in it should be construed as a recommendation to invest or otherwise. The value of an investment may fall and an investor may lose all their money. Any investments referred to in this article may not be suitable for all investors. Investors should always seek advice from a qualified investment adviser.
Chemring Group PLC is a United Kingdom-based company engaged in the design, manufacture and sale of counter- improvised explosive device (IED) equipment, countermeasures, pyrotechnics and munitions. The Company operates in four business segments: Counter-IED, Countermeasures, Pyrotechnics and Munitions. Counter-IED segment includes IED detection equipment,chemical and biological threat detection equipment, IED electronic countermeasures, explosive ordnance disposal equipment and demilitarisation services. Countermeasures segment includes expendable active and passive countermeasures for naval and air platforms,land-based electronic warfare equipment. Pyrotechnics segment includes signals and illumination devices and payloads, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment. Munitions segment includes missile and ammunition components, propellants, warheads, fuzes, energetic materials, medium and calibre ammunition. more »
MITIE Group PLC is a holding company. The Company provides management services. It is focused on the provision of outsourcing and energy services in support of the buildings, facilities and infrastructure of its clients. The Company operates in four segments: Facilities Management, Technical Facilities Management, Property Management and Asset Management. On January 10, 2012, it acquired 100% of Utilyx Holdings Limited. On December 6, 2011, it acquired 51% interest of Direct Enquiries Holdings Limited. During the fiscal year ended March 31, 2012, it increased its interest in Service Management International Limited from 50% to 100%. On August 17, 2011, it purchased certain minority interest in five of its subsidiary companies, which included MITIE Cleaning Services Limited, MITIE Engineering Maintenance (Caledonia) Limited, MITIE Landscapes Limited, MITIE Property Services (UK) Limited (MPSUKL) and MITIE Transport Services Limited. In October 2012, it acquired Enara Group Limited. more »
Carillion plc is an integrated support services company, with a portfolio of public private partnership projects and construction capabilities. It has operations in the United Kingdom, the Middle East and North Africa and in Canada. It operates in four segments: support services, which includes its facilities management, facilities services, energy services, rail services, utility services, road maintenance and consultancy businesses; public private partnership projects, which includes its equity returns on its investments in public private partnership projects in its sectors of defense, health, education, transport and secure accommodation sectors; middle east construction services includes its building and civil engineering activities in the middle east, and construction services, which includes its United Kingdom building, civil engineering and developments businesses and its construction activities in Canada. In December 2012, it acquired a 49% of interest in the Bouchier Group. more »
