Here I am revealing my Growth Stock Portfolio that I have been building over the past months. If you have noticed, my growth stock portfolio comprises of companies from the US stock exchange.
I have chosen to invest in the US stock exchange to develop my growth stock portfolio because there are more growth companies as compared to dividend paying companies listed on the US stock exchange. These companies that are of good quality can grow their share prices 20 to 30 percent in a financial year.
If you are looking for dividend stocks, the US stock market is not for you because even if the company pays dividend, the yield is less than 3 percent. I would rather the company not pay dividend and use the capital to grow the company.
Similar to how I track my dividend stocks, I am using Stocks Café to keep track of my growth stocks.
Below are short description of the companies in my growth stock portfolio.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.
The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Splunk is a cloud-first software company that focuses on analyzing machine data.
The company is a major player in two markets: security and full-stack monitoring & analysis.
Splunk is currently undergoing a cloud transition as the company weans its on-premises customers over to its cloud products that are delivered as software-as-a-service.
The firm’s top line consists of the sale of software licenses, cloud subscriptions, and maintenance and support.
Ulta Beauty Inc (USX:ULTA)
With more than 1,300 stores and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the U.S.
The firm offers makeup (43% of 2021 sales), fragrances, skin care, and hair care products (20% of 2021 sales), and bath and body items.
Ulta offers private-label products and merchandise from more than 500 vendors. It also offers salon services, including hair, makeup, skin, and brow services, in all stores.
Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
Adobe Systems Incorporated (USX:ADBE)
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Mastercard Inc (USX:MA)
Mastercard is the second- largest payment processor in the world, having processed close to $6 trillion in purchase transactions during 2021.
Mastercard operates in over 200 countries and processes transactions in over 150 currencies.
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume in 2021.
Retail-related revenue represents approximately 80% of the total, followed by Amazon Web Services’ cloud computing, storage, database, and other offerings (10%-15%), advertising services (5%), and other.
International segments constitute 25%-30% of Amazon’s non-AWS sales, led by Germany, the United Kingdom, and Japan.
Alphabet Inc (USX:GOOG)
Alphabet Inc is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary.
Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google’s other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue.
Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue.
Alphabet’s moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more.
Alphabet’s operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
VeriSign Inc (USX:VRSN)
Verisign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains.
The company operates critical internet infrastructure to support the domain name system, including operating two of the world’s 13 root servers that are used to route internet traffic.
In 2018, the firm sold its Security Services business, signaling a renewed focus on the core registry business.
NVIDIA Corporation (USX:NVDA)
Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms.
The firm’s chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems.
In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm’s products.