Wildly Growing Stocks, With a Hefty Dividend, Toohttp://www.fool.com/investing/general/2013/02/20/wildly-growing-stocks-with-a-hefty-dividend-too.aspx Selena Maranjian
February 20, 2013
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some small-cap growth stocks to your portfolio, the iShares Russell 2000 Growth Index ETF (NYSE: IWO) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously. It tracks the Russell 2000 index of small-cap growth companies.
Why small caps?
More than a handful of tiny growers had strong performances over the past year. And I mean strong. Pharmacyclics (NASDAQ: PCYC), for instance, has soared 255% over the past year. The company has a very promising cancer-fighting drug, ibrutinib, which recently received the new "Breakthrough Therapy" designation from the FDA. It has other possibilities in its pipeline as well. On the downside, it has been issuing more shares and diluting the value of existing shares. If one or more of its drugs is a big hit, however, that won't be such a big concern.
3-D printing specialist 3D Systems (NYSE: DDD) surged 185%, reporting "a corporate home run" in its third quarter. It reports its fourth quarter next week. Some worry about cutbacks in military or industrial spending, but there's also a promising consumer market, which might end up printing food, of all things. (Some worry that 3D is now overvalued , too.) There's also speculation that 3D or another peer will buy the promising private rival MakerBot.
Real estate investment trust (REIT) Omega Healthcare (NYSE: OHI) increased 38% and offers a 6.5% dividend yield. It's close to a pure play on nursing homes and stands to benefit as our population ages. In 2012, the company's revenue from operations rose 20%, funds from operation