These two Australian energy companies should see strong returns over the next decade.
Planned consolidation should contribute to better pricing power in this shrinking industry, but one name stands out among the rest.
Although inflation has ticked up from 2013 levels, it remains below its historical average and a long way from a worrisome level, says Morningstar's Bob Johnson.
With its size-meets-value approach, this large-cap fund could be a suitable core holding.
Investors concerned about putting money to work in a fully valued equity market might find comfort in these conservatively managed portfolios, says Morningstar's Russ Kinnel.
Brand power can create strong competitive advantages in the consumer sector, but cost advantages and network effects also can play big roles.
This company regularly considers an additional fifth special dividend per year, which can turn into a nice payout for shareholders.
Companies with fortified moats can stave off competition and tend to have better risk-adjusted returns than the broader market.
This fund has to overcome a major hurdle with its expenses, but it has far exceeded expectations in a short time frame.
The health-care sector has a higher volume of moat firms compared with other industries, and companies' patent and brand power deliver very strong returns on capital.