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4 stocks that could save your retirement

These mid-sized companies have great dividend paying records, and could be just the ticket for your retirement portfolio.

Year to date, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is up just over 4%. Nevertheless, there are opportunities that investors can take advantage of. They may not be glamorous, but they may well be the most likely candidates to get your portfolio ready for retirement, or any other long-term financial goal you have.

To give you some ideas, we’ve turned to mid-sized companies trading at reasonable prices. We’ve also focused on companies that have a consistent history of paying decent dividend yields, and not so widely followed, that everyone has already piled into them.

Here are some of the companies we’ve turned up:

Company Forecast P/E ratio Current dividend yield
Flexigroup Limited (ASX: FXL) 12.5x 4.1%
JB Hi-Fi Limited (ASX: JBH) 14.3x 4.0%
Amalgamated Holdings Limited (ASX: AHD) 15.6x 4.5%
Cedar Woods Properties Limited (ASX: CWP) 13.8x 3.6%

Source: CapitalIQ

As a bonus, all four companies pay fully franked dividends. From consumer finance, electronics, entertainment to property development, these four are reasonably priced, without being red-light specials. But all four have largely avoided the gaze of investors – you could even call them boring.

And if you look back, you’ll find that most have paid consistent dividends over the past few years, and have a good track record of performance. Solid, unobtrusive companies like these won’t appear on many investors’ radars, making them all the more attractive for Fools disciplined enough to dig them up.

With the right stocks, you can both generate decent capital gains and receive income through both the good and bad periods.

At best, we can use historical performance to make educated guesses about the likelihood of future outperformance. However, as I'm sure every billionaire on Forbes rich list knows, we don't drive our investment vehicle looking in the rear-view mirror!

That's why, every year our top analyst scours through the ASX and picks one stock he thinks will beat the market and pay a generous dividend. Recently Scott Phillips identified one growing company with a cheap share price and a massive 7% grossed-up dividend yield! Best of all: You can get his #1 dividend stock idea for 2014 - 2015 free in our new investment report. Simply, click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today

The One ASX Pick You MUST Add to Your Portfolio

Top Motley Fool analysts just identified their #1 ASX pick for 2014, a small-cap stock that could be poised for big gains (and offers a fat, fully franked dividend!).

Discover all the details now, including the name and code, in this FREE investment report, "The Motley Fool’s Top Stock for 2014."

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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