So you want to turn $15,000 into $50,000 using ASX stocks? If so, you’ll need to find a company that is capable of generating a compounded total shareholder return of at least 12% per annum on average over an entire decade.
There aren’t too many ASX stocks that are capable of giving investors that kind of impressive return. But ‘not too many’ doesn’t mean none.
So, today, let’s discuss two ASX stocks that I think have the potential to turn $15,000 into $50,000 by 2033. That’s assuming you reinvest your dividends, of course.
2 ASX stocks that could deliver 12% per annum for a decade
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Soul Patts is a share I often spruik, thanks to its unrivalled track record of delivering for shareholders. This investment house owns and manages a large portfolio of blue-chip ASX shares, as well as other unlisted assets, on behalf of its owners.
Soul Patts is a company that happens to hold the ASX 200 record for the longest streak of annual dividend rises (currently sitting at 22 years and counting).
Every few months, Soul Patts tells investors how much it has returned to them through share price growth and dividend payments. Its most recent update came in June.
This revealed that, for the 20 years to 30 April, shareholders of this ASX stock have enjoyed an average performance of 12.9% per annum.
At that rate of return (which is not guaranteed for future years of course), our $15,000 would turn into more than $54,000 after ten years.
VanEck Vectors Wide Moat ETF (ASX: MOAT)
This isn’t really an ASX stock we have here, but an ASX exchange-traded fund (ETF). Even so, the Wide Moat ETF’s impressive performance over recent years shouldn’t be ignored by any investor, in my view.
This is an actively managed fund. That means that, rather than holding hundreds of shares from one market, the Wide Moat ETF holds a concentrated portfolio of specifically selected shares. In this case, US shares.
These shares are handpicked based on whether they display characteristics of a ‘wide moat‘. This Warren Buffett-coined term refers to a company’s intrinsic competitive advantages that it can use to ward off rivals. It could be a powerful brand or a cost advantage. Or some other special sauce that makes it difficult for customers to stop buying their products.
Some of MOAT’s current holdings include names like Disney, Kellogg, Amazon, and Nike. I think we can all agree that those are some of the best companies in the world, for various reasons.
This ETF’s methodology is so successful that it has been able to generate an average return (as of 31 July) of 16.18% per annum since its ASX inception in 2015.
At that rate of return (again, not guaranteed), our $15,000 would turn into almost $75,000 after a decade.
